The document outlines the strategic case for cloud computing compared to on-site data centers. On-site data centers require large upfront capital investments and have high fixed operating costs that are difficult to scale. In contrast, the cloud computing model offers lower variable costs through economies of scale, allowing companies to pay only for resources used and quickly scale up or down as needs change. This leaner cost structure along with rapid provisioning of resources enables companies using cloud computing to more flexibly expand operations and introduce new business offerings globally. The conclusion is that cloud computing provides tangible benefits like reducing costs, improving scalability and flexibility that make migrating IT infrastructure to the cloud strategically important.