The Case for Cloud Computing
In the setting of enterprise software packages, the existing software have in most cases been extremely involved and costly. They call for a business in Woolsey to spend heavily on capital expenditure to establish an in-house data center with office space, environmental controls, electrical energy, dedicated computers, storage arrays, and network capacity. On top of all this costly infrastructure is the need for a complicated software stack for the application. After the software has been written, you will also need a group of experts to install, configure, and run the software. But that was before the introduction of cloud computing.
A straightforward example of cloud computing is email furnished with no software set up from suppliers such as Microsoft's Hotmail or Google's Gmail. You don't need to install any software or acquire a dedicated server to be able to utilize them. All a business needs is simply an internet link so the users can start issuing emails. The server and email management software is entirely on the cloud and is fully managed by the cloud service provider such as Microsoft, Yahoo, or Google. The consumer gets the use of the software and experience the advantages.
Cloud computing is so competent and low-cost that a well respected financial research newsletter has just dubbed it the "$59 computer." Of course there is not really an actual product called the $59 computer -- it is simply a generic term to refer to the general notion of cloud computing being so inexpensive that making use of it can lower your company's processing costs to the level where your total expenses would be analogous to paying just $59 per computer user.
One vital point that numerous IT departments ignore or misjudge is the T1 Line Bandwidth requirements for carrying out cloud computing. In one report, the chief information director of a insurance firm said she had to increase the company's network capacity by a factor of five when they switched to one vendor's cloud computing product. This is not a rule of thumb for every person, but it's a great example of what a single company implemented. If you are planning to switch to a cloud computing strategy, do yourself a favor by first discussing your bandwidth requirements with an independent T1 line consultant who can provide you all your possible alternatives such as Gigabit Ethernet service.
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