| By :
Dirik Hameed
The needs of the market are continually changing and businesses have to incorporate these new changes into their day to day IT activities. Cloud computing pricing works to change the needs of these market dynamics. Centralizing and shared infrastructure can significantly lower computing costs than if a business chose to do utilize the technology on its own.Increased competition set the stage for companies that deliver this services to lower their prices. Cloud computing uses the Internet and servers to control information and applications and allows consumers and companies to use these applications without installing them. They have access to their files from any location worldwide that has an Internet connection. It save on bandwidth and memory expenses and all these activities are performed in the "cloud". Planning in this manner will prevent cash flow problems as it will show the business which are the major expenses that hit the P&L statement. This technology can assist a business in prioritizing which IT segments can be allowed to run remotely. Not having an idea of what the IT department needs may stem from not having a strategy put in place so proper evaluation is key to allocating segments accordingly. Businesses should adopt this new technology wholeheartedly because it can help it cut costs. A business can divert its resources from capital expenditures such as hardware, servers and cables and move to pay as you go expenses which can lead to the overall effectiveness of the IT department. This technology allows the business to only pay for what it needs and not for future uses. It would be similar to paying water and electricity charges. A public cloud like a public domain sells services to anyone who is interested in using the Internet while a private cloud limits its service to a select number or group of people. Customizing a public cloud to service a private group is called virtual private cloud. The goal of these two forms is to provide access to computing resources and IT services. The big disadvantage in this technology is that it costs a lot of people jobs that they need to sustain themselves and their families. The economy is already weak and slow and there is a massive shortage of jobs so employees would certainly not be too happy about being replaced due to some cloud technology idea. Pricing of this technology is based on consumption so it is important for a company to ensure their bills reflect their usage otherwise they may end paying for services that they are not receiving. Analyzing of true costs gives a business the opportunity to see where it is over utilizing or under utilizing and if these cost centers are bringing in any revenues that make the cost worth it. It is also important for a firm to check on this in order to have good accounting records. The trend nowadays is to go green. Cloud computer pricing tries to minimize use of cables which are not biodegradable. It also involves saving on using a lot of power to maintain the servers. A process known as virtualization fully utilizes hardware but the disadvantage is that data centers are used in the computing and they consumer lots of power on their own. There is hope however that super computers of the future will be good at utilization of power and enable the whole process to be green.
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