completely eliminated. Add to these obvious savings areas the virtual elimination of the capital expense associated with annual software licensing (e.g., initial license purchase, annual maintenance, individual help desk support, etc.) and the user savings become dramatic and easily justified. This is especially true in this era of increasing IT needs coupled with decreasing IT budgets. Cloud computing represents one of the few means of meeting next year’s IT requirements with last year’s budgetary amounts.”[7]
This above definition justifies the economical importance of Cloud Computing and states the major advance in IT and business represented by this technology. Speaking from the global point of view it is based on the major resource provider’s economies of scale, such as Google. The quality of services is accompanied by massive cost reductions, often over 50%. Basically a major economic advantage of cloud computing is the fact that “it turns capital expenses into operating expenses (CAPEX to OPEX)". Through this reversing of expense type companies are able to direct their capital to other business investments different from IT.
The Cloud is a solution that provides new ways of using external resources that you can configure according to your needs - servers, storage, applications and services. A great economical advantage is that resources are leased by the Cloud provider on-demand and in variable quantities so that the client only pays what he consumes. In other words, if you do not use the resources, you do not pay it. The secret is the emerging technology that allows all types of companies to match the technical resources of multinationals. To implement a system within a company needs a lot of resources both material and human. If we’re referring to a small business, these investments are limited and any IT investment affects the investments needed in other business areas. That is why Cloud is an ideal solution for small or medium businesses, providing companies the resources to hire an insignificant cost, so that small companies can match the technology of one of the most advanced technologies in the world, which is available locally. The real advantage is that anyone can use for free or for a small amount of money the best services on the market. Companies of 3 or 3,000 people can use immediately cloud services and the price will be directly proportional to the use of the resource. Cloud solutions spare the costs for servers, software licenses, hosting, collocation, database maintenance, specialized technical personnel, upgrades of all kinds, annual subscriptions, etc. You just need the final service and you can benefit from the Cloud. We assume that we all have a computer with access to the Internet, so we can instantly be Cloud services users. For example, Gmail now allows storage of 25 GB of emails. A local solution in-house offering lower performance would cost at least 3-4 times more per year.
Another definition, written from an academic perspective is presented in the article "Above the Clouds: A Berkeley View of Cloud Computing" wrote by the researchers of RAD Lab (Reliable Adaptive Distribute System Laboratory) at the University of Berkley. This article points out the most important features of cloud computing: “Cloud Computing refers to both the applications delivered as services over the Internet and the hardware and systems software in the datacenters that provide those services. The services themselves have long been referred to as Software as a Service (SaaS). The datacenter hardware and software is what we will call a Cloud.” [1]
The definition explains the essence of a Cloud and the considered component elements. It refers both to the software and hardware, introducing a new term “Software as a Service” that will be further explained
completely eliminated. Add to these obvious savings areas the virtual elimination of the capital expense associated with annual software licensing (e.g., initial license purchase, annual maintenance, individual help desk support, etc.) and the user savings become dramatic and easily justified. This is especially true in this era of increasing IT needs coupled with decreasing IT budgets. Cloud computing represents one of the few means of meeting next year’s IT requirements with last year’s budgetary amounts.”[7]
This above definition justifies the economical importance of Cloud Computing and states the major advance in IT and business represented by this technology. Speaking from the global point of view it is based on the major resource provider’s economies of scale, such as Google. The quality of services is accompanied by massive cost reductions, often over 50%. Basically a major economic advantage of cloud computing is the fact that “it turns capital expenses into operating expenses (CAPEX to OPEX)". Through this reversing of expense type companies are able to direct their capital to other business investments different from IT.
The Cloud is a solution that provides new ways of using external resources that you can configure according to your needs - servers, storage, applications and services. A great economical advantage is that resources are leased by the Cloud provider on-demand and in variable quantities so that the client only pays what he consumes. In other words, if you do not use the resources, you do not pay it. The secret is the emerging technology that allows all types of companies to match the technical resources of multinationals. To implement a system within a company needs a lot of resources both material and human. If we’re referring to a small business, these investments are limited and any IT investment affects the investments needed in other business areas. That is why Cloud is an ideal solution for small or medium businesses, providing companies the resources to hire an insignificant cost, so that small companies can match the technology of one of the most advanced technologies in the world, which is available locally. The real advantage is that anyone can use for free or for a small amount of money the best services on the market. Companies of 3 or 3,000 people can use immediately cloud services and the price will be directly proportional to the use of the resource. Cloud solutions spare the costs for servers, software licenses, hosting, collocation, database maintenance, specialized technical personnel, upgrades of all kinds, annual subscriptions, etc. You just need the final service and you can benefit from the Cloud. We assume that we all have a computer with access to the Internet, so we can instantly be Cloud services users. For example, Gmail now allows storage of 25 GB of emails. A local solution in-house offering lower performance would cost at least 3-4 times more per year.
Another definition, written from an academic perspective is presented in the article "Above the Clouds: A Berkeley View of Cloud Computing" wrote by the researchers of RAD Lab (Reliable Adaptive Distribute System Laboratory) at the University of Berkley. This article points out the most important features of cloud computing: “Cloud Computing refers to both the applications delivered as services over the Internet and the hardware and systems software in the datacenters that provide those services. The services themselves have long been referred to as Software as a Service (SaaS). The datacenter hardware and software is what we will call a Cloud.” [1]
The definition explains the essence of a Cloud and the considered component elements. It refers both to the software and hardware, introducing a new term “Software as a Service” that will be further explained
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