What Are The Economic Benefits Of The Cloud?
• Min CapEx on IT Hardware
• Few and Lower Skill IT staff is Sufficient
• No Hardware Changes for Scaling Up or Down
• Disaster Recovery (DR) Site is not Required
As most of the cloud service providers are offering disaster recovery and business continuity as a part of the organization cloud migration services. For most of the small and medium scale industries, these services are sufficient and they do not have to invest in a DR solution separately. However, few of the large-scale industry, not really rely on the DR and Business continuity solutions provided by the CSPs, they would rather look security in a larger scale.
Principles Involved in Cloud Economics
Economies of scale:
Cloud Economics – Top 3 Concerns for a Valuable Migration
1. TCO Analysis
Creating a base level TCO model is an essential step during the pre-migration stage, this will help organizations to measure various cost-saving opportunities that Cloud would bring and to calculate the value of success once you start moving to the Cloud. In pay-per-use models, organizations often underestimate the costs connected with cloud migration and usage, these remains as unpredictable costs.