Cloudware Economics - Guide to Cloud Computing for Business and Technology Managers - page 281

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Cloudware Economics
14.1 Drivers for Cloud Computing in Enterprises
As the technology has been maturing, greater management emphasis is
being placed on the need to realize business benefits from cloud investment.
With the pace of technology maturity, there will be a shift in how vendors
supply their cloud technology and solutions and how cloud consumers build
on new business models through the technology enhancements offered
by cloud. Investment in cloud computing should be more than a business
enabler and cost reduction exercise; it should be an exercise in capability
building leveraged to drive the business, with increased adaptability, agility,
flexibility, scalability, and mobility across the enterprise system landscape.
Some of the key business drivers that are linked to creating value beyond
cost efficiencies and business scalability are as follows:
• Cloud computing enables business agility by enabling the business
to respond faster to the demanding needs of the market; by facilitat-
ing access, prototyping, and rapid provisioning, organizations can
adjust processes and services to meet the changing needs of the mar-
kets. Faster, and easier, prototyping and experimentation can also
serve as a platform for innovation. This allows shorter development
cycles and faster time to products and value.
• Virtualization offers a tangible benefit of abstracting away the oper-
ational system complexity, resulting in better user experience and
productivity. This, in turn, can significantly reduce maintenance and
upgrade costs, while providing flexibility for innovative enhance-
ments and developments in the background.
• Expanded computing power and capacity allows cloud comput-
ing to offer simple, yet context-driven, variability. It can improve
user experience and increase product relevance by allowing a more
enhanced, and subtle customization of products and services, and
personalized experience.
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