IT organizations are facing increasing pressure to deliver critical services to their users while their budgets are either reduced or maintained at current levels. New technologies have the potential to deliver industry-changing information to users who need data in real time, but only if the IT infrastructure is designed and implemented to do so. While computing power continues to decline in cost, the management of large data centers, together with the associated costs of running these data centers, increases. The server administration over the life of the computer asset will consume about 75 percent of the total cost.
Scaling an existing data center in many cases is not possible as demands from users increase, and as the real estate or construction costs become too high or unavailable. Cloud computing can offer IT departments the ability to respond to critical needs while costs remain under control and predictable. With more compute power available to organizations than previously possible, business innovation on many fronts is just a click away when working with a cloud computing provider.
The term, “cloud computing” can mean a variety of things to different people. The National Institute of Science and Technology (NIST), which is part of the U.S. federal government, defined the term, which is used in U.S. federal government activities and broadly encompasses a number of important points.