The Benefits of Cloud Computing
In the situation of business software packages, the readily available implementations have generally been pretty complex and costly. They require a corporation in Pittsburg to spend heavily on capital expenditure to establish an in-house data center with office space, temperature controls, electrical energy, dedicated servers, storage arrays, and network capacity. In addition to all this pricey infrastructure is the need for a complicated software stack for the application. Even after the software has been written, you will also need a team of specialists to set up, manage, and run the software. But that was before the introduction of cloud computing.
Cloud computing is a technological innovation that uses the internet and centralized off-site computers to manage data and applications. Cloud computing permits clients and organizations to make use of applications with no set up and access their private files at any computing device with internet access. This technology enables much more efficient computing by using common hard drives, processing, memory, and bandwidth.
Cloud computing is so capable and low-cost that a well revered financial research newsletter has just called it the "$59 computer." Obviously there is not really an actual product called the $59 computer -- it is simply a general term to make reference to the basic notion of cloud computing being so cheap that making use of it can decrease your company's processing costs to the point where your overall costs would be equivalent to spending just $59 per computer end user.
One important point that many IT departments ignore or underestimate is the T1 Line Internet requirements for carrying out cloud computing. In a recent case study, the chief information officer of a insurance firm said he had to boost the company's network power by a factor of five when they switched to one vendor's cloud computing solution. This is not a rule of thumb for every person, but it's a good example of what a single company implemented. If you are preparing to switch to a cloud computing solution, do yourself a favor by initially talking about your bandwidth requirements with an independent T1 line consultant who can give you all your available alternatives such as Gigabit Ethernet service.
