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What enterprises should know about cloud computing

Cloud computing is quickly catching up in adoption among enterprises the world over, but the service providers may not be fully prepared for the change. There are some very important fundamental differences in the way cloud computing is managed, as compared to the traditional systems.

More than anything else, any enterprise looking to succeed in cloud computing needs to know that:

  • The profit margins are different: The whole concept of cloud is built around optimization of storage and resources. This means a significant reduction in operational costs, which is what is driving the growth. So forget about keeping the same profit margins as before, and focus on exceptional service.
  • A lot’s going to change: Shifting to a cloud-based system involves significant commitment from the service provider. This is not a mere change of platform that can be handled with the same workflow as before. Rather, cloud computing involving reworking everything from software architecture to the skilled manpower required. Are you ready for this change?
  • You need to evolve, fast: You may have enjoyed an extremely lucrative business in the past, but it’s all set to change very quickly. Cloud computing makes it very easy for enterprises to switch over, and the overall costs are a fraction of what software companies used to charge. This call for rapid adaption to the changing turf. And those who can’t, will lose.

Yes, cloud computing is the next best thing in the software industry, but you need to make sure you understand this technology fundamentally in order to build a viable service model around it.

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