Sunday, November 15, 2009

Compelling Cases for Clouds

from gigaom

Compelling Cases for Clouds

Collaboration, Community, and Commerce: Web-based networks and commerce platforms offer people the chance to share, conduct business and collaborate within a trusted third-party-provided environment. The cloud, therefore, allows communities and social networks to foster ongoing relationships around shared values, goals and interests.

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CapEx and Cash: Cloud services may be more cost-effective because consumers and even large enterprises may not have sufficient economies or statistics of scale compared to large service providers. But even if cloud services aren’t comparatively cheaper, they can help reduce capital expenditures. And while using cash for capital expenditures by itself isn’t bad, it’s a poor choice if the firm then doesn’t have sufficient cash on hand for daily operations, or if purchased assets are either insufficient to handle demand or underutilized — which is often the case.