Question

In: Operations Management

Discuss whether cloud computing has costs benefits. use specific examples and include resources

Discuss whether cloud computing has costs benefits. use specific examples and include resources

Solutions

Expert Solution

Cloud Computing:

Cloud computing is accessing the services on demand over the internet such as software development platforms, servers, storage and software etc. There is no need of data servers or any electronic devices with the company for the storage purpose as it can be get anytime and anywhere.

This works on the concept of distributed systems and virtualisation. The third party would provide these services to the company. The company only have to pay for the services.

As the cloud services are provided at anywhere so the company need not to install the data servers, software’s electronic devices etc. to get access to the service which reduces the cost. This payment cost is much less than the installation charges time to time.

Cloud computing services make user to backup their data so that they get the access at any point of time. This would reduce the cost for keeping the data to the secure place. The cost of hardware would be reduced.

For example, Before cloud computing the company were required to purchase, construct and maintain costly information management technology and infrastructure. This cost gets omitted after introduction of Cloud Computing.

For example, Global IT department that requires the constant upgrades would cost so it gets existed from the main figures of expenses.

Highly expertise workforce, workstations, fast internet connections, maintenance charges, electricity charges, networking, cabling, hardware, software, licencing etc. cost would be saved.

Reference:

  1. ENISA security Agency Report
  2. Bezos, Amazon.com: Amazon EC2, Amazon Elastic Compute Cloud, Virtual Grid Computing: Amazon Web Services


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