Benefits of Cloud computing

A company manager wrote to me: “What type of software that cloud computing service company has? Why do I need to depend on an outside company to perform information system (IT) functions when I already have my own IT system? What are the benefits?

Answer: Cloud computing company can provide almost all types of softwares that you need, from word processing, finance, accounting to database administration management tools and web applications tools etc. With cloud computing, everybody in your company can access their applications and data from anywhere as long as they have computer that can access the Internet. That means they do NOT have to work from the office but can work from home, in the airport or anywhere. By allowing workers to work at home, you do not need to have office for them. By reducing the number of office space, you can save a lot of money. Today about 35% of office workers in the U.S. are working from home. It reduces traffic jams, pollution, and the cost of transportation and most people are very happy with that.

By using Cloud computing services, you can reduce the need for upgrade hardware as you do not have to buy the fastest computer with the most memory, because the cloud system would take care of those needs. You can use inexpensive laptop to connect to the cloud system as you do not need high speed CPU or hard drive because everything is stored in the cloud. You do not have to buy software, upgrade software or software licenses for your employee but rent them from cloud computing company at much lower prices. For example, you can buy a Microsoft Window 8 for several hundred dollars or rent it from Microsoft cloud service for about $5 a month. If your company has several hundred workers, instead of buy several hundred Window 8 software products, you can rent them and save a lot of money.

By having your own information system, you need to have special space for them and hiring IT people to maintain them. With cloud computing you do not need that physical space anymore. You can sell your own IT equipments and move everything to the cloud and use the saving money to invest in your own business. You also do not need to have IT support people and by having fewer employees, you also save money.

Sources

  • Blogs of Prof. John Vu, Carnegie Mellon University