Impact of Cloud Computing on Software
Originally written by Denise M from the Dell Software News to address the issue concerning the impact of Cloud Computing on Software, the article provide some useful information regarding the subject. All credits go to her. The article is as follows:-
Cloud technology is reshaping the way organizations operate and providing companies with opportunities to generate new savings in time, money and productivity.
Organizations considering adopting cloud technologies for software must weigh the impact this transition to the cloud will have on jobs, look at capital versus operational expenditures, short- versus long-term costs, and expenses that go beyond the cost of software licenses.
Under cloud computing, everything is delivered as a service, wherever and whenever an organization needs it. Unlike the on-site approach to computing, where organizations run software from servers housed within their data center and software is installed on each computer, the cloud environment allows organizations to access the software and other computing technologies as they need them via the cloud.
“[With cloud] firms pay for what they need, eliminating the shelfware problem typical of on-premises deals,” according to Forrester.
Less infrastructure equals lower costs
Overall, cloud computing reduces the infrastructure required. By turning to external providers for hardware, networking, security, and software, organizations can save on many technology expenditures. Once-overburdened internal IT staff no longer must maintain day-to-day operations of a mix of hardware, software, networks, and security, and can focus on business-specific technology projects.
Proponents of cloud computing point to the technology’s ability to reduce—often dramatically—the number of servers within an organization’s data center as its primary cost-cutting benefit. Decreasing the number of servers cuts down on cooling and electric bills, too.
Cloud technology also more closely mirrors employees’ need to access corporate data from multiple devices, ranging from workstations and notebooks to smartphones and tablets, both on-site and away from the office. Instead of facing the proposition of buying multiple licenses for users’ various devices, cloud computing gives organizations a cost-effective alternative that ensures business users can access all the applications they need, no matter which device they pick-up to do a task.
When placed in the cloud, software deployments can be radically shortened because they are Web-based and do not require hardware procurement or testing. In addition, cloud providers will upgrade the software—often much faster than an organization itself—giving organizations more immediate access to new features and capabilities. Instead of waiting for a scheduled, annual upgrade or requesting a special plug-in schedule, cloud service providers can easily and almost immediately give access to new versions or modules of these Web-based applications.
Depending on the service level agreement selected, the percentage of guaranteed uptime can vary, but quality cloud service providers take multiple steps to ensure clients’ access to company data.
Licensing’s new form
Before the cloud, software licensing costs typically were based on the number of computers and users. In addition to the license itself, the price-tag included the time and money associated with training, installation, and implementation. Under a cloud strategy, organizations must address seat licenses, bandwidth, storage, and processing power, as well as training and implementation.
Organizations also should consider that while on-premise licensing is a capital expense, licensing software under the cloud is an operating expense paid for under a monthly subscription fee.
Weighing the risks and benefits
Despite growing acceptance of cloud computing at organizations of all sizes, some are concerned about storing their data off-site on a third-party provider’s servers and networks. In the Dell study Hype, Fad or Reality? Cloud Survey Highlights IT Pros’ Optimism, Concerns, 57 percent of respondents said they perceived data security as a barrier to adopting cloud-based technology. Almost half of respondents (47 percent) were most likely to view the cloud as an extension of long-term trends toward remote networks and virtualization.
A secure cloud computing strategy can unfetter in-house IT professionals from the constraints of mundane software downloads and upgrades, freeing them to do more business-specific and valuable projects. Likewise, users can be liberated from the restrictions of traditional software licensing, and access the corporate network from virtually any device, using the tools available in the latest versions to remain competitive. Share this post on Impact of Cloud Computing on Software