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Cloud computing costs 'can be pay-as-you-go'

Rachel Wheeler Archive
Switching data management processes to a virtualized system does not have to involve a large up-front cost, it has been suggested.

Many companies have been considering a switch to cloud hosting, but in the current financial climate some are likely to be dismissing any major upheavals on cost grounds.

However, according to EuroCloud vice-president Phil Wainewright, many providers are now offering a pay-as-you-go deal, removing up-front costs and lengthy contracts.

By using a virtualized network companies can also save on costs by not having to dedicate time and resources to updating the various applications with the latest software and security, as cloud providers are obliged to do this themselves to keep the service competitive.

"With cloud computing, it automatically introduces new features and you can start using them as soon as they become available," Mr Wainewright explained.

Research from the International Data Corporation suggests that cloud computing up-take will drive IT spending in the next five years.

Posted by Richard Jones