Conclusions: Cloud Computing
Pros and Cons

There are many benefits, but also some pitfalls to consider with implementation and ongoing dependence on Cloud Computing as a solution for your organization...
So here's the imporant question regarding Cloud Computing:
Why should I care?

Well, that depends on your job duties and role in the organization, and whether your company/industry is well-suited to the use of cloud-based solutions. We've reviewed several benefits as key positives to using cloud computing. However, there are several potential pitfalls to using cloud-based services.

Both are discussed below.

Cloud computing: Pros and Cons
Five reasons to embrace an external cloud; five reasons you may wish to pass on the transition to cloud-based solutions:

FIRST, THE POSITIVES:

• Fast start-up
  Cloud computing allows new start-ups to test business plans very quickly for little money. Every start-up, or even a new division within a company that has an idea for something original, and should consider cloud computing at the Existing companies, on the other hand, face the additional consideration, beyond operating costs of using the cloud, with the cost of change. Transitioning to the cloud can be fast, but the pain incurred to train, and install new protocols, with longstanding employees could be costly.
  
  
• Scalability
  One of the greatest benefits of using cloud-based computing in a small/medium sized business or larger corporation is the ability to quickly scale and grow (or downside if needed) with the changing revenue (and resulting required employee) base within the organization.
  
  
• Business agility
  Simply put, you don't have to think in terms of ROI (i.e., return on investment) or payout periods, because there is minimal investment required. You don't have to lay out the initial software license fees. On the contrary, you have to embrace the new "subscription paradigm." In most cases, such as Salesforce.com's service model, you pay a subscription fee per user. So you are not forced into a decision based on the long-term commitment of a software license per user. If you believe that you may face a 20% workforce cut in the next quarter, you can still sign up those additional users, knowing that you can readily cancel those subscriptions if needed. Therefore, productivty should also be enhanced, given this new business agility with software/access ability via the cloud.
  
  
• Faster product development
  Your company can realize reduced times in provisioning, research protocols and cycles, and an overall trickle-down effect throughout any vertical organizational structure.
  
  
• No capital expenditures
  Cloud computing services allow a company to shift from per-user capital outlays to ongoing operational expenses.
  

NOW THE POSSIBLE NEGATIVES:

• Bandwidth could bust your budget
  As internet and internal network bandwidth is increasingly becoming a significant line item cost for many companies, it must be estimated (initially and with significant growth in use) and considered in the decision to transfer to, and budget for, the cloud.
  
  
• Performance could suffer
  Network latency (and secondary issues causing additional external delays) could seriously affect the speed and efficiency of using company applications. If your applications require speed and responsiveness as part of their effective use, then this issue is a big one.
  
  
• It simply might not be a good use of the cloud
  If you have very sensitive customer information (e.g., a bank or credit card company), then your information may not be well-suited to be manipulated over cloud-based delivery systems. Even if security was 100% assured, the perception of vulnerability could provide a major competitive point of weakness in your industry.
  
  
• Economies of scale are eliminated
  Your purchasing power and scalability in resources have to be considered differently, given the size and breadth of your organization. If you are a very large corporation with many users, it may be more prudent to sponsor your own private cloud versus an outsourced solution such as is provided by major cloud providers.
  
  
• Human capital may be lacking
  In some cases, and for your particular preferences and requirements within your industry's area of expertise, you may find that the level of sophistication and technical expertise may not meet your needs. Frustration and disappointment may come at a greater cost in morale and productivity than is saved in capital expenditures.

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