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Why There Is A Shift To The Cloud

7/21/2011
There are many reasons why Cloud Computing is growing in popularity - but the biggest driver is cost savings.

According to IDC,  in paper entitled “ Enterprise Class Virtualization 2.0”, some  interesting stats emerge concerning operational IT infrastructure  costs:  
  • $8 is spent monitoring legacy IT for every $1 invested in new IT infrastructure. 
  •  $.60 is spent to cool and power servers for every $1 in server spending today.
  • Constructing  a new data center costs approximately $1,000 per sq. ft. – this is  approximately $40,000 per rack or $2,400 for a typical server 
  • Gartner Group says energy costs may increase from 10% of the IT budget today, to over 50% in the next few years.
Adding even more servers to already overbuilt, underutilized networks is not the answer for companies trying to strealime costs and focus on strategic IT projects. Instead, businesses can lower costs and gain speed and agility by utilizing cloud hosting and server virtualization. With cloud hosting you pay for only what you need when you need it. This allows companies to handle their workloads on fewer servers and enjoy substantial cost savings in multiple areas, suchs hardware, power and cooling, and support staff.
 

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Stephen C. Sanders commented on Thursday, October 27, 2011 3:28 PM:
The brilliant thing that powers todays clouds is that the technology that it utilizes represents the most effective application of the ever growing nature of the virtual world itself. Simply consider some of the early pc's that would load programs via linear magnetic tape! Now cloud applications allow bits and bytes to stored in redundant locations and the security lies in holding the key to how this bits and bytes get "reassembled". It may well be the closes thing in the virtual world these days to the concept envisioned by the creators of the original Star Trek series with their "Beam me up now, Scotty" technology in their future transporter.

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