Another example of how the Cloud creates greater efficiency is a software development group that wants to create a new software application for either internal or external customers. By leveraging a Cloud provider they immediately have access to a complete server development environment with no need for IT and with modern cloud database technologies the data is stored in efficient, redundant locations. Servers are tuned and kept up to date by the Cloud provider so no further resources need to be allocated. During the load testing phase the group can use the Cloud to run hundreds of clients, and after the testing is completed these servers are freed up to be used in other capacities. This model is financially efficient as servers are set up instantly without the need for the business to provide space, cooling and capital equipment. Small start ups get all the benefits of the large software providers in an instant and for a low cost, creating a game changing equalizer.
As the newly developed software application is rolled out to end users the Cloud provider automatically scales out the backend databases, web servers, reporting and analysis tools based on customer demand. Without access to a cloud based environment, the development team would have to work with IT to estimate and purchase the equipment needed to scale for demand increases whereas in a Cloud model the initial backend can remain small and grow automatically when demand creates a need. Therefore the business only spends on what is needed at any given time and does not have to foot a bill up front for equipment in anticipation of how customer demand will scale.
Whether you are a Human Resources team or a software
development group, after the product has been in its market for a while low use
periods have automated server count reductions and during peak load server
demand is increased, providing simplified cost saving optimizations in which
costs scale only with demand. In this way the Cloud reduces the total
cost of IT expenses needed to get a product in the hands of an end-user. Also,
if the business decides to move to a new cloud vendor or partner offering lower
costs and better support levels, migration is simple with low initiation
costs.
These are big changes and they are creating new oppurtunities at a time when technology sales are slow.
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