What Cloud Computing can deliver — Part 1 Posted on May 15, 2012 by Tim Burke In the right Cloud environment, IT performance goes up while IT costs go down. Here’s how IT performance goes up: Applications are hosted on centralized virtual servers in a data center, so … Each department or end-user no longer needs their own copy of the app, There’s just one version of the app, designed to be sufficiently flexible and customizable so all can use it on a variety of devices, and Services are easily scalable, more secure, and more reliable. Applications can be quickly and automatically provided on demand wherever they’re needed, so … IT resources are optimized, The entire IT environment is more responsive and flexible without adding work or cost, and Access to resources improves without new implementation/deployment risks. And end-users and their departments — as well as trusted partners — can be networked far more cost-effectively, regardless of location, via a standardized platform that enables integration and process automation between internal departments and partners. And here’s how IT costs go down: Squeezed, unstable CapEx becomes predictable OpEx. When hosted Cloud services replace on-premise IT operations, the expense shifts from the capital budget to the operating budget. Just as importantly, those OpEx costs are highly predictable, since Cloud service-level agreements include performance guarantees. Cost savings are achieved by pooling/sharing IT resources. You pay only for what you use. Your total cost of ownership (TCO) plunges. Return on investment (ROI) and time-to-value accelerate. Done effectively, Cloud Computing also improves security and compliance. I’ll get into that in my next entry.