The economics of cloud computing are driving down the cost structure of business so far and so fast that it’s scary, Google’s Chief Information Officer Ben Fried says. He says that CIOs are finally beginning to use cloud computing as a strategic tool. The ability to rent computing and storage capacity devices, use applications that can be used to manage sales accounts, deploy field technicians, or do any other function as needs arise, gives CIOs the ability to help their organizations seize new market opportunities without making huge up-front investments.
Cloud based applications which have become extremely popular are intended to lower costs while putting the company in a position to move quickly when the opportunity presents itself. Workers frequently using free and simple tools such as Google Apps, Skype, Flickr and iTunes for their personal use, now want to use those cloud-based software tools at work. And, CIOs and other technology executives have begun to let them experiment with those services.
Cloud-based applications that utilize cloud computing technology don’t offer every feature and can’t be customized as much as software installed on corporate-owned servers. But as Ben Fried had said at a Bloomberg technology conference that CIOs have to figure out what is really important to them. Cloud-based computing is fast approaching a tipping point that will make it the standard for IT and the macroeconomic tides will force companies to adopt it soon.
Google will offer free ad-supported services to millions of people because it can cut down the cost of its own business. Google has now built its own data centres, locating them to take advantage of the lowest-cost source of power. You don’t go the cloud just because you can, you right source it and must manage it accordingly and then you can spend your budget with the greatest gain.
The cloud is measuring what their core business is, and where they want to invest their capital. Fried said that they don’t offer a special version of gmail for financial services firms. You will have to figure out and decide what is really important to you. Cloud computing is mostly about the distribution of applications and the later will enable sharing of the environment to run those applications.
Entrepreneurial Learning
Cloud based applications which have become extremely popular are intended to lower costs while putting the company in a position to move quickly when the opportunity presents itself. Workers frequently using free and simple tools such as Google Apps, Skype, Flickr and iTunes for their personal use, now want to use those cloud-based software tools at work.
