CHECKLIST: Check a Cloud Computing provider for authenticity 3
Additional resources can be bought on-Demand in a matter of minutes in order to meet therequirements of unexpected situations when needed. These include e.g. complexcalculations or an unexpectedly high number of visitors on the website. If the resources areno longer needed, they can be returned to Cloud.
Resources are abstract and uncomplicated
The hardware needed for the operation of a Cloud changes and is constantly beingimproved. However, it is the Cloud Computing provider’s job to take care of this. A CloudComputing user no longer has to deal with the details behind a Cloud.
A Cloud consists of individual modules
The IT resources of a Cloud Computing provider consist of small modules. This means theyare available separately and are calculated separately. A user has the option of not using anyresources, using all of them, or just using a few, which are provided to him as a service viathe Cloud.
Experimentation is cost-effective
Cloud Computing removes the economic hurdle for experimenting. This allows new ideas tobe tested without long-term investment in the required hardware, in which case one mightresort to temporary resources.
Characteristics from the perspective of a company
No upfront investment
Cloud Computing was created to share resources when necessary. For this reason, no one-time or large investments are necessary before the actual need arises.
Variable costs that come from fixed costs
Instead of relying on a fixed number of resources over a long contract period (usually one tothree years), Cloud Computing enables the use of resources to be changed in real-time.
Investments become overheads
Investments are usually spread over a long period, leading to a multi-year commitment tousing a certain amount of resources. Overheads however, reflect the actual usage of Cloudservices and can be modified in real-time.
Resource allocation is more granular
Cloud Computing enables minimal usage in terms of time and resources, for example, server usage per hour and the individual bytes of used memory.
The company gains flexibility
Due to the fact that a company no longer binds itself to resources for the long term, it is ableto respond to changes more quickly, with reference to the required amounts and the type of business activity.
The provider remains under observation
The core business of Cloud Computing providers is to provide its Cloud for public use.Therefore, it has a strong incentive to provide its services so that they are reliable, applicableand cost-effective. Cloud therefore reflects the core competencies of a provider once again.
renebuest research | business technology – analytics & strategiesRené Büst | © 2012