Cost Benefits of Cloud Computing

BBA 3551 UNIT IV SCHOLARLY
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Introduction
Cloud computing is a model that facilitates convenient, on-demand network access to a shared pool of configurable computing resources, for example; servers, storage, networks, applications and services (Bigelow, 2012). Provision and releases of the resources can be done quickly with minimal management effort or service provider interaction.
Cost benefits of cloud computing
In cloud computing, cost saving is realized by using significant pooling of configurable computer resources. Cloud computing is characterized by resource pooling whereby the cloud serves multiple clients using a multi-tenant model that has different physical and virtual resources regularly assigned and reassigned depending on levels of demand (Olavsrud, 2013). Cloud computing cost benefits depend on four main customer population metrics; a number of unique customer sets, relative duty cycle displacement, customers set duty cycles and customer set load.
For example, a telecommunication company with several products can use Cloud computing to cut costs. A telecommunication company could be providing data services, voice services, digital money transfer services, video streaming services and messaging services. If the telecommunication c...