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Should Businesses Move To The Cloud?

667 words - 3 pages

1. What business benefits do cloud computing services provide? What problems do they solve?

Cloud computing pools computing resources in a virtual environment to provide businesses with efficient storage and computing services (i.e., server time, processing power, network storage, networking, software, etc.), easy connectivity and accessibility across divergent platforms, flexibility, elasticity of computing resources, scalability, reliability, and redundancy—all on a “pay-for-service” model that can significantly reduce costs. Businesses that use cloud infrastructure as a service can save money on hardware and software purchases because they do not have to build an IT infrastructure. ...view middle of the document...

This is not the case with cloud computing, and the downtime could be significantly longer if the subscriber is unable to connect with its service provider the instant an incident occurs.

3. How do the concepts of capacity planning, scalability and TCO apply to this case? Apply these concepts both to Amazon and to subscribers of its services.

When users subscribe to Amazon’s cloud services (Amazon Web Service (AWS)), they are promised reduced overall IT costs, flexible capacity, and scalability. Amazon subscribers benefit from not having to pay the upfront cost of building, owning, operating, and maintaining their own IT infrastructure which involves not only the initial investment but the associated total cost of ownership (TCO). On the flip side, Amazon must charge enough for its services to cover the cost of its TCO while still making a profit; this is accomplished through economies of scale. Since Amazon promises flexibility and scalability to its customers it is imperative that Amazon accurately perform capacity planning to ensure that they can provide their customers with sufficient computing power at all times. ...

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