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How Can the Cloud Fit Into Your Applications Strategy?

By: Nick Mutt

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Cloud computing has been acknowledged as the next big thing in IT industry due to its immense scalable potential, flexibility and low cost. It fits well in every organization's applications strategy though there are few considerations as well.

Cloud provides software as service by hosting commercially available applications and providing its access to its customers through internet. This makes these applications available to all with out any restrictions of geographical locations. Other very important feature of cloud applications is that these applications are hosted at a common platform by the third party with all necessary IT infrastructure available to deploy and run these applications hence, these applications are in ready to use state, which saves valuable time and effort needed for on premise installation and usage of these applications. The applications in the cloud can be logged on by the customer and used according to his business strategy.

Cloud applications fit in the dynamic environment of business very well as they are easily available and also the cost of using these applications depends upon the usage of these applications. Hence usage can be increased or decreased according to the strategy. This eliminates the extra cost that is incurred on the companies, having an on premise IT infrastructure, due to over provisioning of IT resources. Companies have to maintain information technology infrastructure that is utilized completely just once or twice in a year but has to be maintained throughout the year.

Applications available in cloud environment also save huge cost that is incurred in buying and purchasing of the license to use these applications. In the natural business cycle sometimes few fundamental applications are required at many points, buying a license copy every time makes it a costly affair, companies save this expense by manipulating their strategy, cloud environment gives facility to use these applications with extra connections according to company strategy and later these connections can be turned off when need is over.

Applications like CRM, payroll, financial accounting etc which do not require customization can be accessed and used by the companies with out spending on buying them and installing hardware at their own place to run them. This saves the company management from the dilemma they are in, of using or not using these applications as the part of their strategy, due to extra burden they bring on the company's finances. The data related to these applications is also stored at the service provider's end and company need not to spend on the infrastructure for backup or storing the data. Expert support is provided for the applications running in a cloud environment and also latest technology is used for data security which is not possible for every company to avail on its own.

Cloud computing is a business model rather than a technical construct, it is a tool for strategy planning and execution but not a strategy in itself. Cloud environment can contribute in much bigger way if few considerations like security, privacy and data ownership are resolved.

Article Source: http://depositarticles.com/

Find information about Benefits of ERP for SME. Also find information on the Advantages of ERP in an organization. Read review on Microsoft ERP Software, advantages and disadvantages.

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