Smart businesses are always looking for ways to cut costs without impacting the service they provide to customers and stakeholders. Cloud computing offers a compelling cost-saving argument, particularly as the churn of technology has made traditional capital budgeting a challenge for IT organizations.
"What you buy today [in IT] will be obsolete before you even have the capital expense depreciated," observes Michael Hugos, consultant and author of the book, Business in the Cloud. "You need a flexible cost structure where you're not saddled with a massive infrastructure expense. Using cloud computing and Software as a Service (SaaS) are cost-effective, pay-as-you-go mechanisms for IT."
"There's no advantage to me to have a data center and to pay for electricity, cooling, real estate, and other costs. It's more efficient to use a co-location site or cloud-based infrastructure options," says Waleed Sharaf, vice president of information technology at ICW Group Insurance Companies in San Diego.
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