The Times processed 4TB of data through EC2 and S3 , using a credit card to get the service going in a matter of minutes so that it could convert scans of 15 million news stories into PDFs for online distribution.
When introducing a new application, hardware is a significant upfront cost, said Armijo.
But cloud computing means the IT department can acquire the resources by paying the provider “by-the-drink” while not spending on hardware up front, and “and this allows you to spread that cost over time, and also to really manage that cost.” So, the required 10 servers by application, once successful, can be purchased incrementally.
2. Faster time to market.
It typically takes about two to four months to get an application into production, said Armijo, but in the cloud, applications can be deployed and scaled “in hours without changing code.”
3. Reduced financial risk.
If the application for whatever reason doesn’t catch on, or its use within the business has a limited time frame, Armijo said the business no longer has to pay for those resources in the cloud.
Cloud computing leverages commodity hardware, so IT departments can avoid over-provisioning, said Armijo.
And, while a server may appear only to cost around $5,000, he said “but the reality is there is a lot more capital that goes into putting that [data centre] space in there before you even get the server.”
Data centre setup is a “huge expense” and enterprises are even running into power and cooling limits within their facilities, he said.
5. Lower operational expense.
When application operations are streamlined, IT administrators are not so belaboured with tasks like provisioning and management of servers, he said.
6. Decreased downtime and costly delays.
It’s easy to setup business continuity, redundant instances of applications with cloud computing, said Armijo.
Moreover, he said, cloud service providers, given that is their business, have state-of-the art equipment for power backup and cooling.
Cloud service providers, too, can offer services that an IT department otherwise wouldn’t be able to afford, said Armijo, like added security measures, redundancy, bandwidth, and staff with cloud expertise.
The adoption pattern of cloud computing has certainly changed, said Armijo, where at the end of 2007, adopters were those companies one might expect, like Web and software-as-a-service companies, as well a handful enterprises.