Companies are Saving Cost by Outsourcing Computer Power and Technology -post By BMKRIGER
Companies are Saving Cost by Outsourcing Computer Power and Technology
To improve the bottom line, companies use financial expert advice on using “outsourcing” to become more efficient in computer technology spending:
As energy cost increase, the cost of hosting a data center is ever more materially affecting the balance sheets. The short shelf life of technology has naturally made the purchase of technology a substantial expense. Natural commodities important to the technology industry have been on a steady and quick rise in price affecting the cost of purchasing and replacing hardware. To mitigate these cost and increase efficacy businesses are turning to the use of Cloud Computing.
What is Cloud Computing?
Cloud Computing is the idea of outsourcing the computer desktop just as electricity is outsourced to a company that can more efficiently produce and deliver energy needs and solutions. In Cloud Computing, data processing is centralized to a data center at a remote location, possibly hundreds of miles away from the end user.
Cloud Computing enables you to focus your businesses’ attention more on the service you are providing than on the software and hardware needed to run your service. This allows you to be more efficient on getting done what needs to be done to grow your business, as opposed to what needs to be done to sustain your business.
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This is interesting, because companies are constantly looking for new outsourcing opportunities, but I am a little confused about “cloud computing”. Is the data sent to a data processing center where the cost of processing it is cheaper? Because this has been happening for years. It seems though that the acctual physical computer that does the data processing is just in a different location, so that the data can be sent and processed there. Does it happen automatically, or to you have to pay people to manage the off site processing center? Are businesses willing to give up the control of processing the data they need to run their business effectively to save a few bucks? How much does it save?
Really interesting article, but it raises some questions about the effectiveness of this practice.
charlesthomas87 - November 18, 2008 at 6:39 pm |
The data is all prossesed at a data center (also known as the Cloud) elsewhere. This is better because it can be more efficiently upkept by a company who specializes in upkeeping data centers. It also is better because it allows for you to only pay for the data processing power you are using. This goes for server space as well.
Security is a major concern, but new web tools are improving this.
This is now leading to “SaaS” or “DaaS” (Software-as-a-Service, Desktop-as-a-Service), where you may also use software hosted on a cloud through a web application. In this, you only pay for when you use the software – like a pay-as-you-go service. This allows small businesses to use software they might not otherwise be able to afford.
Watch this video for more information: http://www.youtube.com/watch?v=QJncFirhjPg
bkriger - November 18, 2008 at 6:44 pm |
What kind of companies are using cloud computing? Is there any examples of major U.S. companies?
patricksullivan - November 18, 2008 at 9:18 pm |
Currently, Salesforce (CRM) is one of the largest SaaS providers using cloud computing. Others using, or who have made substantial investments such as R&D or acquisitions to cloud computing are: Apple, Dell, Microsoft, Cisco, Intel, Sun Micro, AMD, Google, Citrix, HP, and many more. Cloud Computing is seen as the next frontier in internet and computing.
In fact, all mobile devices will most likely use Cloud Computing as a means of making the device work. The mobile device market is expected to be the largest cloud computing market. Think of it this way: You’ll be able to load any program or application on a phone. The phone will be so powerful, because all of the data processing is done somewhere else! Your next smartphone may be more powerfull than the G4 Apple I am typing this on.
bkriger - November 19, 2008 at 12:25 am |
Outsourcing is often a cheaper option in comparison to hiring adequate staff to do the required jobs. The practice offers cost-benefit incentives, which can help a company be more competitive. Not everyone in a organization welcomes outsourcing, because it is believed that computer automation would also replace laborers in factories and other workplaces, and that layoffing employees is not a good thing for the company’s reputation.
lanlanliang - November 20, 2008 at 3:08 pm |