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Businesses urged to save money with cloud services

Rachel Wheeler Archive
Adopting cloud computing solutions can be a great way for businesses to make significant bottom-line savings.

That is according to Information Week columnist Charles Babcock, who noted that organizations can cut costs simply by scaling back their workload.

He explains that no matter how cheaply businesses run an application in a data center, they will never get the cost down to "zero". This, he added, is one of the main benefits of cloud computing, which can be shut off whenever it is no longer required.

"The way to get the benefit of the cloud is to use it when you need, shrink your use as demand decreases, and shut it off when demand has gone away," Mr Babcock said.

It follows recent research conducted by In-Stat which forecast that spending by US businesses on SaaS public cloud services will grow by 112 per cent between 2010 and 2014.

The firm stated that organizations will increasingly look to take advantage of the cost-saving benefits of the hosted technology in the coming years.

Posted by Rachel Wheeler