Cloud computing provides on-demand access to shared computing resources like servers, storage, databases, networking, software and analytics over the internet which can help businesses lower costs and improve scalability and flexibility compared to maintaining their own on-premise IT infrastructure, however some argue that cloud may not be as cost effective long-term as colocation and that hardware issues in the cloud cannot be directly addressed. Overall, cloud appears to offer more advantages than colocation for businesses seeking efficient IT management in a business-to-business framework.

1. Role of Cloud
in Business Growth
By Ghassan El Khazen
Engagement Partner, Edarat Group

2. Role of Cloud in Business Growth
Cloud computing can benefit a business in various and software as a service (SaaS) indicate that the
ways. But before we discuss this in details, it’s better client needs literally nothing but a computer with
to have an elementary idea about cloud and its func- internet connection. Everything else could be provid-
tionality. Cloud computing outlines a scenario in ed by the vendor. This model is highly scalable for
which hosted services are delivered over the inter- businesses with data centers, because data centers
net. Cloud is essential for businesses because compu- often have extra storage areas and sometimes extra
tation and storage have long been two vital require- equipments than actually required. Subscribing to
ments for enterprises. Through cloud computing, cloud technology can enable those businesses to
these requirements can be met easily and instantly lower cost on data center maintenance and yet man-
without hardware usage. age their IT infrastructure better than before.
However, these are just surface level advantages and There’s an ongoing debate as to whether colocation
there are more to expect from cloud. Two salient is better than cloud. Some argue that hardware is-
features of cloud computing are its being restricted sues within the cloud environment can’t be ad-
within B2B framework and its providers are very dressed. With colocation however, the enterprise
large scale businesses. The growth of a B2C business can be rest assured that whatever hardware issue
depends on whether it can attract end-consumers the data center undergoes, it can be settled. An even
and get them purchasing its products/services. The stronger argument is; using cloud may save spending
growth of the business depends upon this. In case of on hardware, but charges to rent software, infra-
service-driven business-to-business interaction how- structure and applications on cloud isn’t cost effec-
ever, the buyer and the provider are both business tive.
and business growth is bidirectional here.
Some truth is involved in these arguments. Since
Cloud computing represents such a setting. Well- cloud is essentially B2B, vendors may charge quite an
handled IT infrastructure indicates better manage- amount of money and henceforth, it could be diffi-
ment of those businesses. Cloud is a great solution cult at the day’s end to estimate which of colocation
for efficiently managed IT infrastructure. Scalability, and cloud technology will be better in terms of sav-
elasticity and instant access are some of the ad- ing.
vantages come along with cloud. By using cloud, a
business can lower cost significantly. Buying soft- But selecting cloud or colocation is difficult only in
ware, running it on the system can all be skipped just the background of data center management. Other-
by connecting the machine to a cloud, provided by a wise, colocation has hardly any role to play when the
vendor. In this way, the business can reduce spend- client is opting for platform as a service and the de-
ing on hardware equipments as well as software us- vice is a Tablet or a Smartphone.
age.
But then again, that’s not B2B. In the B2B frame-
The three distinct models of cloud service; platform work, cloud appears to have more layers than colo-
as a service (PaaS), infrastructure as a service (IaaS) cation.
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