Business needs drive technology adoption.  A quick analysis of business factors that force technology changes will reveal that enterprises are faced with three major challenges that are addressed by Cloud technologies. First, IT departments have tight budgets and hence computing should be low cost. Second, technology must foster agility and mobility. Third, technology must make the organization scalable, available, and resilient.

The Cloud offers low cost computing. Public Clouds facilitate sharing of resources and this results in economies of scale that drive down costs. Private Clouds use virtualization technologies to enhance capacity and improve performance. Hybrid Clouds offer a range of cost structures derived from varied combinations of private and public Cloud computing infrastructures. In-house CAPEX purchases can be replaced with OPEX outlays. Expensive data center management and maintenance teams can be disbanded and smaller technical teams can be hired with external reinforcements such as–the Cloud vendor’s expert support panels.  As a result, businesses are seeing advantages in outsourcing functions that are really not their core competency. It does make sense to buy and own servers and data centers anymore. There is economic sense in outsourcing hardware and software management at a lower cost to company.

The Cloud makes the enterprise agile, scalable and available.  Business gurus agree that this could be the one most important reason why businesses move to Cloud computing.

It is settled that the Cloud brings with it massive capacity on demand.  That is very attractive to businesses.  Businesses need to scale up, and the Cloud permits scale up without capital outlays. Hardware and software do not have to be purchased to scale up infrastructure. There is no set up time to contend with. Capacity can be enhanced instantly and used immediately. The dynamic power of the Cloud translates to dynamism in process design and deployment leading to agility. Branches can be opened in remote locations and computing power made available to them with almost no lead time. Mobile workers can be given access to enterprise information over the Internet from wherever they are.

High availability and disaster recovery are automatic in the Cloud.  It is, therefore, not surprising that businesses that have a low Recovery Point Objective (RPO) and Recovery Time Objective (RTO) are attracted to the Cloud.  Cloud vendors create the hot sites and replication sites as part of the packaged offering. Data is replicated continuously or as per schedule to alternate, local or geographically dispersed servers to ensure high availability of data and services. Server clustering, failover services are configured to facilitate uninterrupted customer service and 99.999% uptime.