Can cloud computing save an organisation money?

Today I read a very good article about how cloud computing can save an organisation a large amount of money. Money is saved by not hosting services on your own site, for example an Exchange Server, and instead hosting it in the cloud.

http://www.computing.co.uk/ctg/news/2076978/leaders-forum-chiefs-savings-cloud

I also read another article which has the opinion that cloud computing can be more expensive, depending on the type of your organisation. The writer suggests that although the  cost of cloud computing is low compared to standalone software, this cost is ongoing rather than a one off payment. On the otherhand although the cost is ongoing you will always have the latest version of available applications, whereas new licences would be required for non cloud computing environments. Some businesses may not require to have the latest version of applications should the version they have perform all the functions they require.

http://www.computing.co.uk/ctg/analysis/2075703/cloud-computing-rip-premise-bites

I think that the majority of organisations that could benefit from cloud computing would be large enterprises rather than small businesses. Because small businesses tend to have fewer computers and do not always require to have the latest version of applications, it is not neccessary to subscribe to a cloud service. On the otherhand if they did it would free up IT resources for other work. Larger organisations may be more interested as it would allow more resources to work on other projects rather than maintaining on site equipment that could be done by outsourcing.

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