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What Cloud Computing can deliver — Part 1

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In the right Cloud environment, IT performance goes up while IT costs go down.

Here’s how IT performance goes up:

  1. 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.
  2. 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.
  3. 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:

  1. 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.
  2. Just as importantly, those OpEx costs are highly predictable, since Cloud service-level agreements include performance guarantees.
  3. Cost savings are achieved by pooling/sharing IT resources.
  4. You pay only for what you use.
  5. Your total cost of ownership (TCO) plunges.
  6. 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.

Tim Burke
Meet the Author

Tim Burke is the President and CEO of Quest. He has been at the helm for over 30 years.