Cloudware Basics - Guide to Cloud Computing for Business and Technology Managers - page 272

There might be some instances, particularly for long-term, sta-
ble computing configuration usage, where cloud computation
might not have a cost advantage over using one's internal
resources or directly leasing equipment. For example, if the vol-
ume of data storage and computational resources required are essen-
tially constant and there is no need for rapid provisioning and
flexibility, an organization's local computational capabilities might be
more cost effective than using a cloud.
Resources are used more efficiently in cloud computing, resulting in sub-
stantial support and energy cost savings. The need for highly trained and
expensive IT personnel is also reduced; client organizational support and
maintenance costs are reduced dramatically because these expenses are
transferred to the cloud provider, including 24/7 support that in turn is
spread onto a much larger base of multiple tenants or clients.
Another reason for migrating to the cloud is the drastic reduction in the
cost of power and energy consumption.
13.5.3 Centralized Data Storage
Many data centers are an ensemble of legacy applications, operating sys-
tems, hardware, and software and are a support and maintenance night-
mare. This situation requires more specialized maintenance personnel,
increased costs because of lack of standardization, and a higher risk of
crashes. The cloud not only offers a larger amounts of data storage resources
than are normally available in local, corporate computing systems, it also
enables decrease or increase in the resources used per requirements—with
the corresponding adjustments in operating cost. This centralization of
storage infrastructure results in cost efficiencies in utilities, real estate, and
trained personnel. Also, data protections mechanisms are much easier to
implement and monitor in a centralized system than on large numbers of
computing platforms that might be widely distributed geographically in
different parts of an organization.
13.5.4 Reduced Time to Deployment
In a competitive environment where rapid evaluation, development, and
deployment of new approaches, processes, solutions, or offerings are criti-
cal, the cloud offers the means to use powerful computational or large
storage resources on short notice within a short period of time frame,
without requiring sizeable initial investments of finances, efforts, or time
(in hardware, software, and personnel). Thus, this rapid provisioning of