Cloud Computing: Breeding Innovation and Efficiency

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Cloud Computing is on the tip of everyone’s tongues.  Its innovative technology streamlines processes, simplifies IT, and connects business units around the world.  But it is more than just a hot new trend—it breeds innovation.

The Cloud is a service that’s enabled through a browser with the service provider providing service through some sort of remote facility…  The Cloud is all encompassing and includes everything from software and computing, to storage, infrastructure and business processes.” Simply put, a Cloud operating system can take care of a company’s every technological need by acting as a virtual IT department.  Instead of maintaining a server onsite and paying large costs upfront for hardware and bandwidth that may go unused, companies essentially “rent” server space from the Cloud provider and only pay for the computing power they use.  The provider can take care of all data and document storage and security; they can automate all operating systems, and they provide software on-demand.  Companies can choose to overhaul their entire system or pick the components of Cloud Computing, such as document storage, that complement their existing IT department.  Either way they get routine optimization and seamless upgrades as part of the service.

The Cloud advantage is about improving business. It is also about cutting the cost of doing business. By switching their IT to a virtual provider, companies no longer need to pay for the infrastructure of an onsite server nor do they need to employ a large team of technology specialists just to deal with the day-to-day issues of e-commerce or network hosting. With these cost savings, companies have more cash on-hand and can direct it towards improving and developing their product and business processes.

An added benefit to third party IT operations is that these specialists manage IT resources and investments so that they track closer to business strategy.  This allows executives to shift the 70/30 business model. “Seventy percent [of a technology budget] is typically what most businesses spend on maintenance and enhancement and [they spend] 30% on growth and innovation…  With the Cloud, [staff] IT [personnel] is freed up to innovate business solutions and provide better security,”

Source: Vistage International