Benefits of using cloud models #

Because customers generally do not own the infrastructure used in cloud computing environments, they can forgo capital expenditure and consume resources as a service by just paying for what they use. Many cloud computing offerings have adopted the utility computing and billing model described above, while others bill on a subscription basis. By sharing computing power among multiple users, utilization rates are generally greatly improved, because cloud computing servers are not sitting dormant for lack of use. This factor alone can reduce infrastructure costs significantly and accelerate the speed of applications development.

A beneficial side effect of using this model is that computer capacity increases dramatically, since customers do not have to engineer their applications for peak times, when processing loads are greatest. Adoption of the cloud computing model has also been enabled because of the greater availability of increased high-speed bandwidth. With greater enablement, though, there are other issues one must consider, especially legal ones.

The following are some of the possible benefits for those who offer cloud computing-based services and applications:

  • Cost Savings — Companies can reduce their capital expenditures and use operational expenditures for increasing their computing capabilities. This is a lower barrier to entry and also requires fewer in-house IT resources to provide system support.
  • Scalability/Flexibility — Companies can start with a small deployment and grow to a large deployment fairly rapidly, and then scale back if necessary. Also, the flexibility of cloud computing allows companies to use extra resources at peak times, enabling them to satisfy consumer demands.
  • Reliability — Services using multiple redundant sites can support business continuity and disaster recovery.
  • Maintenance — Cloud service providers do the system maintenance, and access is through APIs that do not require application installations onto PCs, thus further reducing maintenance requirements.
  • Mobile Accessible — Mobile workers have increased productivity due to systems accessible in an infrastructure available from anywhere.

Cloud Computing Deployment Models
Legal Issues in Using Cloud Models