Utility services and consequent cost savings have been amply demonstrated by Power and Electricity companies. Now cloud services are making pathways for utility computing concepts in IT usage and providing an effective argument for abstracting IT resources and services to the cloud. IT investment advocates are being silenced by the innovative ways in which the cloud technology is being handled to provide security, scalability and high availability to the enterprise, while reducing the total cost of ownership.

The cloud has changed the head of accounting for IT resources. The accounting head is shifted from CAPEX to OPEX. Baseline evaluations of the total cost of ownership are made irrelevant. Any estimates on IT resources engaged in servicing duplicate data are rendered redundant or even meaningless. Orphaned capacities and operational inefficiencies are history.

The visibility of IT infrastructure, networks and storage are greatly enhanced in the cloud backup services. Good IT resource management tools that provide visibility to cloud backup services reduce the cost of ownership of storage and infrastructure and improve efficiency of resource use by constantly reporting resource usage data. As a result, cloud backup services draw attention on data capacity management and provide an overview of infrastructure used and available for use at any given point of time. Additionally, the scalability of the infrastructure pre-empts any move to provision for additional infrastructure on anticipatory demand. Infrastructure can be requisitioned for and made available “on-demand”, consumed wholly and paid for on the fly.

Deduplication and compression are integral to cloud backup services. These technologies create efficiencies and affect capacity-utilization rates positively. The technology drives best practices in storage provisioning and helps organizations maintain higher capacity-utilization throughout the year. IT resources are no longer uselessly engaged in servicing duplicate data stored on multiple systems, consuming expensive IT resources that enterprises can ill afford.

Finally, the cloud, seamless and instantly, extends the enterprise network with minimal OPEX investment in IT resources.  Mobile workers, remote workers or far flung branches of the enterprise can be connected to the enterprise database in the cloud without drawing cables or setting up data centers. All that the remote unit needs is a computing device; authorization to access the cloud based backup account and a good Internet connection!