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This will result in many followers and will raise the popularity of cloud computing.
a) For a new entrant it is hard to invest huge amount in infrastructure to build own data centre. Here cloud computing lessens their cost to substantial level (Pay-Per-Use facility might be recalled of as an example).
Capacity Planning: - This is a course of action that an organization use to determine the production required to meet varying demands for its products. Here though Amazon is a retail organization, they shift their business from retail to cloud computing technology, since lots of small organization who are dealing with large data sets are opting to be their clients. In the long run to reduce the risk of server downtime they are simultaneously useing public and private cloud.
Scalability: This is the capacity of a system to accomplish large number of works in a competent style with ultimate achievement of growth. Amazon is handling a large number of data of many organizations with flexible computing power, messaging and other services. Circumscribing this dimension, Amazon is equipped with huge resources directed towards helping an array of small firms entering new business and struggling to maintain huge database. On the other way, subscribers of Amazon for example, Zynga is using a business model where they use private and public cloud jointly. At the juncture when Zynga decides to launch any new application they use public cloud because they are uncertain about their future applicability. Once this application stabilizes in the market they shift to its own cloud computing dynamics for the reduction of risk related to the server downtime problems.
TCO: Total cost of ownership is an estimation of cost method and is used to assist consumers and project managers to establish direct and indirect costs of a product or
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