Elementary to the Cloud Computing debate is that software is rented rather than purchased outright. Finance directors will immediately draw a comparison between the two paths and present that after typically 2.5 or 3 years, the rental payments on exactly the same resources would appear to exceed the capital cost: it would consequently make little sense to accept a rental agreement.
While that break-point may be right at first view, Alex Parker of Commensus reasons that there are significant considerations to be taken into account. “It assumes that any equipment bought is being fully utilised from the outset. If a company has acquired IT solutions with the capacity to take it forward three or five years, for instance, it is paying for resources on which it cannot generate a return on capital. Changed circumstances may mean that the capacity is never fully taken up.”
Cloud Computing offers the prospect of moving most IT expenditure from the balance sheet to the profit & loss account. This in turn removes capital expenditure, cutting operational expenditure and gives small companies the budget predictability they need. IT departments can then focus on the front-end issues that will enable organisation survival and growth.
With Cloud Hosting, instead of making one capital commitment to buy the hardware and another to acquire expensive software, businesses in effect rent both the hardware and the software, paying only for the resources that are actually employed. So you don’t pay anything when services are not necessary, doing away with unneeded overprovision of resources to allow for occasional spikes in demands. Companies can go from 20 workstations to 80 and back to 50 again in the time it takes to authorise the online paperwork. This “pay-as-you-grow, save-if-you-shrink” model works out much cheaper in the long run.
In the past, it could take a organisation six to eight weeks to commission an application server. Now, computing power and storage space is becoming a commodity, bought when needed and scaled up
when required. This dynamic resource management is enabling businesses to react quicker to market changes and acquire an advantage over their rivals. It is this agility and scalability that persuades most companies to venture into the cloud.
But Cloud Computing is more than an IT deployment. Moving into the cloud is a cultural shift as well as a technology shift. For IT staff, and especially the chief technology and chief information officers, it requires a rethinking of their roles. 70% of time previously wasted on operational maintenance and upgrades is then available to spend focusing on business strategy. This allows a business to take advantage of new opportunities to innovate and grow. Commensus help customers with solutions such as Cloud Computing, Cloud Hosting, VoIP Phone Systems, Exchange Mailbox, Hosted SharePoint, Virtual Desktop.