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: