World over, organisations are feeling the real heat of the depressed market condition.  One of the hot topic of discussion between the corporate wall are, how to cut down the cost ? how to lower the Capital expenditure, there by reduce the huge burden on the board ?

In the case of IT ( Information technology) investment, more and more organisations are turning towards hosted model, rather than CAPEX model, which was traditionally been the practice for decades.    It’s the realisation that, Hosted model or cloud computing can really bring down the heavy initial investment.  At the same time, the organisations can taste the benefits of high end IT power with a flexible costing which generally in par with the usage.   That means, you pay only for what you use.  You can explore the resources which are almost infinitely scalable with a low cost.

There are 3 different kind of cloud models.

1.     External cloud, which basically utilises the resources which is outside the enterprise.

2.     Internal cloud, which utilises resources with in the organisation in a virtualised data centre

3.     Hybrid cloud, is a combination of external and internal cloud.  IBM recently demonstrated a system, that enables companies to move application processing from an internal cloud to a public cloud facility, while keeping all data stored within the private cloud.

Yes, offcourse, it’s still the early days for cloud computing, but if correctly planned and implemented, the benefit reaped because of the same can be to the tune of 40 percent to 50 percent.   However, less matured technology space and security risk prevail as the real block to a drastic change.