Cloud computing is the use of computer resources over the Internet, utilizing a remote, dynamic, and scalable computing system. Computer servers provide managed IT services to users remotely, offering a technology infrastructure without requiring an investment in physical computing resources. Essentially, computing systems are available through Internet access rather than expensive in-house systems.
Data center services -- from data storage to data protection and disaster recovery -- are available without a costly, dedicated IT department. Instead of having a server room and a complex assortment of computing devices to run business systems, all IT services are available remotely. This paradigm is a massive cost saver because it eliminates the large up-front capital expense of an in-house data center as well as the ongoing operational expense of computer and software maintenance and upgrades, and the IT staff to manage them. Companies that take advantage of cloud computing leverage efficiencies to reduce their operating costs and pass those savings onto their clients.
Eliminating Capital Expenditures
The use of cloud computing eliminates the need for capital expenses involved in information technology. Through cloud computing, IT infrastructure including hardware, software, and services are offered on a utility or subscription plan. This enables any company to have world-class IT infrastructure without having to set up a single piece of hardware or install any software. These benefits nearly totally eliminate barriers to end-user access to necessary services. With managed IT services delivered through the Cloud, costs are tied to use, not physical assets; there is not an up-front set-up or operational cost that would be commensurate with actual use.
With remote access to managed IT services through cloud computing, the burden of infrastructure and management are removed from the end user company. World-class design, implementation, and management are handled by the IT service provider as are hardware, software, and firmware. The cloud computing option can more easily adapt to technology innovation and eradicates downtime by employing virtualized resources and redundant systems. Cloud computing offers leading edge capabilities, allowing users to take advantage of technology innovation without the risk inherit in an in-house roll-out. Generally, the cloud computing IT service provider features an expert IT support and service department available 24x7x365 to monitor, report, and correct any issues. This eliminates the risk that the end user organization will be crippled by a problem which their potentially smaller IT department could not immediately resolve.
Managing Operating Expenses
In many rental or leasing programs, the operating costs for the equipment is roughly identical if the equipment was instead bought out-right; the fundamental savings are on the capital expense side. However, with cloud computing, operating expenses can actually be lower than a similar system installed in-house.
For example, the average business runs its data center 10 hours a day. During off-hours, the system is typically idle. With cloud computing, IT infrastructure and managed IT services can be utilized around the clock. Computing power is constantly available, maximizing efficiency. This cost savings is passed on to the cloud computing customer. This setup is similar to having a traditional IT department leasing their services during off-hours, reducing costs for everyone involved.
Personnel costs are streamlined in the same manner. Most IT implementations do not require a full IT department for routine support, but do need more manpower during outages, upgrades and turnarounds, peak usage loads, or when problems arise. With cloud computing, the IT service provider offers a dedicated. 24x7x365 workforce for data center and managed IT services fields a constant volume of work, offering further reductions to operating costs in relation to in-house technology systems.
Security
Data security has rapidly moved into the forefront of most people's minds. From identity theft to corporate espionage and the vandalism of government websites, the safeguards on computer systems have become as important as the lock on the front door.
A data center or colocation facility is well-suited to handling the latest security threats and viruses. They are inherently more responsive and flexible because it is their core business. In addition to managing against malignant attacks and natural disasters, data protection, backup, and disaster recovery are vital to any business and its critical customer and operational data. . After just one incident where months or years worth of information is lost, any manager readily appreciates the need for meticulous backups and redundancy.
Ultimately, cloud computing leverages technological efficiencies to offer remote services with lower operating costs while eliminating an end user's capital investments. The managed IT services provided are of top quality and are readily accessible through always-on Internet portals. Dedicated staff, hardware, and software solutions are utilized in an on-demand configuration for safe, secure, and effective data storage and management.
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