Economics of Cloud Computing

It is known that probability of successful adoptions of cloud computing into an enterprise is increased when the following conditions exist.Cloud-vendor relationships characterized by trust are critical for cloud deployment and the promise of gaining advantage in a competitive market.In successful cloud deployment, organizations are able to focus on the core competencies that result in competitive advantage. And organizations achieve greater IT economies of scale with cloud computing when investing first in relational, technical, and managerial capabilities. Cloud based computing systems are complex and share many of the same challenges as a conventional distributed computing model, as well as offering their own unique challenges. The decision to migrate one or more applications, services, or an entire enterprise to a cloud computing model is a critical one that involves substantial risk and reward. Before committing to any cloud strategy organizational leaders must require a rigorous decision making process.Furthermore, all cloud based solutions should comply with emerging standards in order to maximize portability and interoperability.