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Cloud Computing (Section) Due) There has been rapid evolution of the traditional method of computing from a centralized data center to distributed data center owing to the fact that both information and information consumption has been distributed. The rapid evolution tags along with it, the need for flexibility and lower capital costs in order for a business to remain competitive and relevant in the current market. Unlike the traditional networks or data centers, cloud computing has elasticity to cope with the ever growing current demands and the rapid information being created outside the centralized data centers.
Cloud computing might be the frontier in business computing and service delivery, but it does not actually differ from the traditional file hosting and network given that they both use the same technology. The significant difference that makes cloud computing more striking exists in the execution of the technology; virtualization. Virtualization avails clients with unlimited resources given that it allows for large scalability. IntroductionCloud computing allows businesses to enter new markets and to get closer to customers thus easy delivery of new services.
Cloud technologies are commonly used by businesses, as a catalyst, to implement new processes and systems that free organizations to maximize not only business results but also the functional metrics. The paper examines the difference that exists between cloud services and then traditional networks and hosting. (Ivanov, 2012).Cost benefit analysisCloud services offer a number of business and economic benefits to an organization such as the access to a highly scalable infrastructure while reducing the cost of operation and maintenance.
Servers in traditional networking and hosting set ups are fixed in hardware meaning that an organization has to spend more money in upgrades in case it wants to scale up in order to cater for more users than the current hardware can support. This proves to be costly with minimal benefits given that the upgraded hardware is still limited to a number of users. (Rittinghouse & Ransome, 2010). Cloud services, on the other hand, has its servers and other infrastructures virtually installed in place enabling for scalability from small needs of users to massive corporate needs.
The ability for cloud computing to easily scale resources with minimal cost makes it more affordable than the traditional hosting system since users only pay for what they use. Server and infrastructure upgrades are done by the cloud service providers rather than the business organization thus ensuring minimum operating cost. (Salam, 2012)Basically cloud computing provides a business organization with unlimited resources and services at a much cheaper cost as compared to the traditional hosting and networking where the business spends a lot in operating costs while receiving minimal and limited benefits.
(Salam, 2012) Cloud computing eliminates a lot of costs to a business organization such as the costs of physically securing the infrastructure such as the servers, installation and maintenance costs. Given its easy availability and access, an organization can save on its electricity consumption by allowing employees to work remotely from their homes. (Rittinghouse & Ransome, 2010). Market analysisCloud computing market has tremendously grown in the recent times given its wide benefits and lower costs of operation as compared to the traditional file hosting and network.
Some of the major players in cloud computing market include such companies as Google, Cloudon, Amazon , Yahoo, Cisco, Vmware, Garantia Data, Embrace among others. (Butler, 2011)According to a report by Market Monitor, cloud computing market is expected to reach $16.7B by 2013 in revenue, focusing a CAGR of 24% up from $8.7B in 2010. It is predicted that cloud based applications will replace IT enterprise spending by 2.34% by 2014 while rising to 14.49% in 2020. An increase in global cloud IP is predicted by Cisco over the next five years therefore accounting for close to 34% of the total data center traffic.
(Mahowald, Konary & Sullivan, 2011)ReferencesTop of Form Butler, B. (2012, September 5). 12 hot cloud computing companies worth watching. Network World. Retrieved November 9, 2012, from http://www.networkworld.com/news/2012/090512-cloud-companies-watch-262155.html?page=2 Columbus, L. (2012, January 17). Roundup of Cloud Computing Forecasts and Market Estimates, 2012 | A Passion for Research. A Passion for Research. Retrieved November 9, 2012, from http://softwarestrategiesblog.com/2012/01/17/roundup-of-cloud-computing-forecasts-and-market-estimates-2012/ Ivanov, I. (2012). Cloud computing and services science.
New York: Springer.Mahowald, R. P., Konary, A., & Sullivan, C. G. (2011, December 17). IDC Presentations – 232239. IDC Home: The premier global market intelligence firm.. Retrieved November 9, 2012, from http://www.idc.com/getdoc.jsp?containerId=232239Rittinghouse, J. W., & Ransome, J. F. (2010). Cloud computing: implementation, management, and security. Boca Raton: CRC Press. Salam, A. (2012, July 30). Traditional Networks Vs The Cloud | CloudTweaks. CloudTweaks.com - Cloud Computing Community.
Retrieved November 9, 2012, from http://www.cloudtweaks.com/2012/07/traditional-networks-vs-the-cloud/Shim, J. K., & Siegel, J. G. (2012). CFO fundamentals: your quick guide to internal controls, financial reporting, IFRS, Web 2.0, cloud computing, and more (4th ed.). Hoboken, N.J.: Wiley. Bottom of Form
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