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Benefits of the Cloud

One thing that I’ve noticed about tech reports talking about the cloud is that they never get the benefit correct. That doesn’t mean that somebody doesn’t understand it, it could just be that I haven’t read their articles. Most all writers talk about how the motivation behind the cloud is for large companies to outsource their IT budget. But that’s not what it is! The reason why a company would host another companies infrastructure is that the client company can’t make the most of their hardware.

For example, a small company wants an Exchange Server. So they buy the hardware and the licenses and setup the server. But they didn’t have enough money for purchasing redundant hardware. If the small company pays for a hosting company to host their mailboxes they would pay less than what they what running their own server would cost them. The reason is because they just wouldn’t have enough users to make the most of the hardware. But a hosting company (also known as the cloud) would have enough hardware for redundancy, and enough clients to make the most of the hardware.

So for a large company it’s not worth it to migrate to the cloud. A large company can use all of the servers resources and afford redundancy. So I can see in the future as medium sized companies grow to large companies that they’ll be able to afford to bring their data in house.

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