Cost Benefits of Cloud Computing in the Company - Essay Example

The first benefit of Cloud computing platforms is that they provide easy access to a firm’s high-performance computing as well as storage infrastructure via web services. Cloud computing has the aim of hiding the intricacy of IT infrastructure administration from its users (Bahga & Madisetti, 2014). Simultaneously, cloud computing platforms offer enormous scalability, 99.999% dependability, and high performance, along with reconfigurability that can be specified. These capabilities are given at relatively low costs when compared to devoted infrastructures (Erl, Puttini & Mahmood, 2013).

I present an impression of Eveready’s cloud services as well as the pricing to be employed in the calculations. Eveready has two appropriate cloud computing services. Foremost, Eveready gives the Elastic Computing Cloud service. This platform charges every hour running instance, and it provides examples with diverse computing power as well as memory (Bahga & Madisetti, 2014). This application meets the criteria for an excellent application in this course. To begin with, I am interested in the application. As an IT manager, I realize that cloud computing was maybe the single most significant finding this century in my field. As a man database administrator, I am as well intensely interested in the challenges and successes faced by other men scientists.

Second, in juxtaposition with EC2, Eveready will provide the Elastic Block Store (EBS) service. This service gives reliable and unrelenting storage with a high IO performance. EBS rates per GB of storage as well as for each million IO transactions. Eveready will also offer the Simple Storage Service (S3). This is a service to provide access via web services to unrelenting data kept in buckets (one level of directories) together with meta-data (key/value pairs). S3 rates per GB of storage as well as HTTP requests relating to it. Persistent FS will offer a POSIX-compliant file system using S3 and is debatably less costly than EBS for largely read-only data. On the other hand, for volunteer computing projects, the difference in cost between S3/Persistent FS as well as EBS is not major and does not change the conclusions. Consequently, it can be assumed all storage takes place on EBS. Costs of snapshots are not considered, i.e. EBS volume backups to Eveready’s S3.

Cloud computing has advantages for uneven workloads since the infrastructure can level with quick decreases or increases (Rhoton, 2009). Furthermore, costs are changeable (and in total not more than the fixed costs). Cloud computing is effective for applications that are small to medium-sized.

Lastly, it can use the least amount of physical IT resources to service the utmost level of IT resource demand. Correctly balancing these factors, the characterized user groups will lead to roughly 30 percent reserves in IT resources. When implemented correctly, the cloud computing financial model will drastically lessen the operations as well as maintenance costs of IT infrastructures (Rhoton, 2009).

The ROI model for the Eveready cloud computing
ROI= (increase in profit + Reduction in cost-cloud costs)/cloud costs
= (4500000+1350000-2500000)/2500000
= 1.34 per year Read More