Cloud computing has been considered to be the biggest game-changer in IT and much attention has been placed on the cloud technologies. However, the truth is that it is economic considerations and cloud technology
per se which has been driving traditional IT solution providers to shift to the cloud. Instead of witnessing a technological revolution, people are experiencing a change in way consumers consume resources. So, the shift has been mainly because of the economics of using clouds as against using traditional physical data centers.
When you think of virtualization you will think of a separation of hardware from software. Earlier to deploy an application you would need servers with dedicated cloud storage
. Now, this connection between hardware and software may be virtualized; this offers flexibility because you get to choose where you want storage to be. So, you can install data centers in the less-costly locations and you can even choose to run software on servers which are bought and run by third parties. With virtualization, you become free to run your apps anywhere; you get to change where you will operate these too, thereby disrupting traditional delivery or consumption of resources.
A third factor which has brought about this shift is culture. It was predicted must earlier than when the network will becomes as quick as the processor; the computer is going to spread across the network. But users were initially skeptical because of security reasons. They were not willing to keep sensitive data beyond the corporate firewall or transfer mission-critical apps to a third party vendor. But, now, people are ore keen than ever to buy IT services from vendors just like one would buy electricity.
Finally, a major catalyst for the change has been the worldwide economic downturn. This had really compelled people to reassess their existing business models. As IT underwent some serious reviews, cloud computing was seen as a lucrative option. With cloud it was possible to convert fixed costs to variable costs. When you have on-premise architecture you will always have to bear some extra costs since IT resources need to be available for any peak demand period. So, when you use these equipments during certain times of the year, like holiday periods, they remain unused for other times of the year. You have to pay for capacity which you may not use. But, with cloud, this does not happen. Moreover, users can reallocate resources. When businesses need resources, they can scale these up instantly instead of having to wait for new hardware which may take a while in an on-site set-up. Cloud technology is a given and it is always ready for use.