Thursday, 17 July 2014

The Increasing Expenses of Cloud Computing

Whether you sign up with the big players of cloud computing or some other cloud computing service, it is without a hesitation that startups practically build up their businesses with the help of cloud computing services which equips them with instant access to cloud services via the net.

What exactly is the Cloud?
So, here's some basic information for you. The Cloud is basically a simile for a group of computing resources like virtual servers, storage, network equipment, CPUs and RAMs which is utilized by users via the internet. The idiom cloud computing mainly refers to the method of using those resources jointly to attain an organization's storage goals as a replacement for of using its on-site equivalent.

Cloud computing services provide IT firms with the option of purchasing IT as a service rather than having to form an entire section for housing a series of hardware equipment. This is the major reason why cloud computing services are further often than not compared to an electrical grid station because the users do not need to be aware of the infrastructure or the devices which have been used, all they have to do is make use of the cloud computing service and make payments of the services which they are utilizing in their business.

It is a well recognized fact that users who visit e-commerce websites don't stick around too long if the website slows. So, as businesses move to the cloud with the sole purpose of improving their services, the situation concerning the costs becomes even more complex. From a management's point of view, the subsequent methods are some of the major areas of concern in using cloud computing.
  • Poor user experience because of performance bottlenecks. Given that e-commerce is the only leading cloud application area according to the latest technical news, a recent study showed that nearly 3/4th of users are already using cloud resources to sustain their e-commerce websites.
  • The failure of revenue which is due to poor performance or troubleshooting issues regarding the newly implemented cloud services.
  • The boost in costs of hidden charges which may pop up later on when a business has entered a complex environment.
  • The attempt which is required to manage service level agreements and vendors.
  • The impact of poor performance on the customer’s perception of your brand, service or products. This is one of those areas which will most definitely affect brand loyaltyThe listed below are some of the questions that businesses need to ask themselves when making the transition to the cloud.
    • Challenges relating to service availability?
    • What happens when transactions line up because of slower service?
    • How much does it cost to sit and wait while you get on the phone with the support technicians to sort through the issue?

    The reality of the matter is that whether cloud computing really works for your business model or doesn't, ultimately every business needs to scale in a way that is not likely while using physical servers. Even though there are those firms who have seemed to have soured on the cloud, the reality remains that even the best in-house hardware cannot equal to the cloud which is the basis why businesses should plan before making the switch.

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