Economics of Cloud Computing-Transform your Business

In the IT industry and other businesses, cloud computing has emerged as a major paradigm shift. It has proven itself to aid IT in driving business towards success. Sometimes, it can be defined as a just-in-time provisioning of services on shared hardware. Cloud computing is a prodigious opportunity to transform a business. .  Cloud Computing shows a potential for businessmen and the IT industry to grow rapidly, deploy services only when they are needed, show rapid elasticity, provide on-demand services, and provide ubiquitous network services. Cloud computing can drive a business rapidly towards success in   the market due to its scalability and pliability. Cloud computing offers next generation architecture, condensed and encapsulated management and lower cost along with agility. What drives IT? Is it cost or agility? In economics this term is related to supply and demand.  There are several questions asked by businessmen regarding cloud computing.  Most of them inquire how much of the expenses can be reduce by the use of cloud computing. More often, we hear the question how a cloud will improve their business revenue.

How can we define business agility and how is it directly related to cloud computing? In response to a change in the environment, the capability of a business to change swiftly and cost-efficiently is called business agility. According to a leading global management consulting firm McKinsey & Company, a faster revenue progress, a lasting cost reduction and an effective risk management are the factors that affect business agility.

According to business and IT leaders, infrastructure and technology are the chief drivers of business agility. The above mentioned survey showed that companies that have already deployed cloud technology are making their way towards becoming more flexible and lithe according to the growing business demands. On the other hand, in companies with non-agile IT departments, there exists a major communication gap between its IT professionals and business stake holders. People related to IT say that the reason behind this communication gas is a lack of skills and money, while businessmen report a lack of IT infrastructure to be the cause.

Cloud computing, now, is being deployed by IT people as a strategic weapon to enable full transformation in business. In February 2011, a business agility survey was conducted by the award winning market research firm AbsolutData, in which more than 600 corporate decision makers participated. More than 80 percent of the members agreed that agility is linked to corporate revenue. This agility, linked with cloud computing, can be seen in different industries. Many health care organizations have acquired a major business transformation by changing the way electronic health records are maintained in order to improve patient safety and security.

Similarly, schools and other public sector organizations are seeking the cloud computing technology to transform their cost structures. All over the world, retail banks are eager to provide their customers mobile banking service so that they can have a greater control over their finances. IT is enabling this transformation in various businesses using the cloud computing technology. This includes an acquiescent, protected and precise test and development atmosphere that IT can create quickly in order to provide production applications for end users, so that , they can access them on any device, anywhere, at anytime.