In my previous post I gave some introduction to cloud computing, now i can brief why Cloud is the buzz word of the technology today. From a invester prespective one of the biggest benefit that cloud computing provides is that it reduces the Capital Expense (CapEx) .
I can explain it more clearly with an example suppose you had some innovative idea to develop some e-business application. You feel so confident about the application and your business analysis say that the application has to be support accessibility by around 1000 users simultaneous. You have developed the application and now you have to make it ready for 1000 simultaneous users.
What can you do now... do some performance tuning to make the application ready, Make some capacity planning for 1000 users , procure hardware to serve that many number of users, invest huge amount to procure the hardware, ok you have done everything and the application is hosted.. What if the application didn't reach well as you expected or what if the application is used by only 100 users and not 1000 as you predicted ? The hugee money you have invested into the hardware is not utilized and you are not making money as you predicted...
I can provide you a simple solution for this, once you have the application ready you can host the application in a environment which takes care of backing up the application , manage failover, takes care of scaling based on demand if all these can be done at a cost of less than 10 Indian Rs (.12 cents USD) per hour what do you do ? Yes the answer is cloud, currently public cloud providers like Amazon, Microsoft, Google are providing cloud environment with the cost as I have mentioned. See how much of investment risk has been reduced , how much of capital expense has been reduced.
Also if the application is a hit and you want to scale the application you do it with a mear change in configuration file. You pay for what you use in the cloud. What else you want.. gotcha why cloud is so buzz now..