We know that Cloud computing is a style of computing that uses the Internet to deliver various IT-related services. The core advantage of Cloud service is, it directly eliminates the extra cost and cuts downs the time involved in buying, selling and setting up the software. It provides a quick way of adding new servers and hosting new Web based applications with little upfront investment. It enables enterprises to focus on innovation as they no longer have to own or manage their IT resources. One has no need to put extra money to hire skilled & trained manpower or any equipment other than an Internet-connecting device to use these services. Cloud is a way of better utilization of limited resources. The utility of all server, storage and network resources gets maximized as it is shared by multiple users, thus cuts down the waste on global level. It is environment friendly and energy efficient way to meet the enterprise’s IT needs.

Cloud Computing has a lot going for it – has all the attributes and potential to support a global outsourcing environment. Cloud provides much better scalability of computing the resources (both hardware and software) to meet demand in an unpredictable global market. It allows enterprises to contract their costs in direct proportion to the needs. In simple words, it is like how you consume traditional utilities such as electricity, “pay for what you use and pay till you use it”. This is a revolutionary paradigm and a boon for companies, dealing into outsourcing businesses.

When we look at the other part of the Cloud computing, it is a win-win situation for both provider and customer with competitive cost options to access technology. It has the ability to shift the risk from enterprises to the Cloud computing provider. This concept refers to the fact that, since it’s up to the cloud provider to handle the computing processing load and the enterprise will pay by use, then it’s possible to reduce the risk that user will run out of capacity to support the customers and core business processes. The risk functionally shifts to the cloud provider who is better suited to accept that risk and capable of managing it. So for the provider the turnaround time to solve issue might be equal or less proportionate to the problem occurring in traditional environment.

The Cloud provides the advantage of elasticity or the ability to rapidly scale up cloud computing-based systems, rapid provisioning of Cloud computing assets, such as storage and database services and a much more cost efficient model than on-premise systems. For companies, that have a seasonal business or product lines, having the mentioned capabilities, are very valuable to accommodate peak demand periods without having in-house servers sitting idle at other times.

Cloud computing is a platform for enterprise customers to build up a complete outsourcing relationship with more in-depth customized options as well as security. 2010 is not only a year of recovery from economical downfall, but one where businesses need to balance Capex (capital expenditure) and Opex (operating expenditure) more than ever. It’s a demand of time to manage these expenditures and Cloud computing makes a great deal of sense for many enterprises, regardless of size, to overcome & sustain on a long run.