Cloud-based web hosting services alleviates the necessity to buy our own equipment or to rent them at an optimized cost, as the host is ready to lease those equipment dedicated only to our business purpose at a very nominal rate. This task enables most of the companies to save on at least 25% of their total budgetary allocations on the IT infrastructure.
When we consider the virtual environment that a cloud can offer, it is extremely economical in terms of its agility and scalability, and the client is just required to pay for the extent to which he leases the service from the vendor with nothing to invest beforehand.
As the cloud caters to the needs of wide and variant clients, it can provide variant services to its clients at a cheaper rate as the costs are shared among the vendors.
To illustrate the scenario better, we can take the example of Salesforce.com, the leaders in the field of cloud computing offering cloud-based web hosting services to about 54000 companies and catering mainly to the information relating to its employees using about 1000 servers. They proudly state that their services are extremely reliable with their scalable infrastructure and privacy policies.
It is quite easy to store critical data in enterprise secure areas in intra-extra companies to avoid the risks of keeping the data on the external server.
Negative effects and Disadvantages of cloud computing:
The Greenpeace NGO announces, in its 2010 report on the ecological impact of the IT industry, the negative impacts of cloud computing.In the below list you can see the 5 disadvantages of cloud computing as per the report.
1.The main drawback is the security issues related to storing of confidential information in the cloud. As all information is available via internet if taken to the cloud, there may be concerns with breach of confidential information.
2.There is a tendency for some firms to lose their control over the piled up information in the cloud.
3.The legal issues including ownership of abstraction on the location data of cloud computing.
4.Cloud computing also poses problems in terms of insurance, especially when a company submits an operating loss due to failure of the supplier. Where one company covering a risk, the insurance company offering the cloud architecture takes more, slowing sharply compensation.
5.The customer service of cloud computing becomes dependent on the quality of the network to access this service. No cloud service provider can guarantee 100% availability.
Regarding the IT services market, the development of cloud computing should involve the cannibalization of traditional players, particularly those whose clients are SME and SOHO. The SaaS model gives an advantage to large service providers whose prices are closely related to the volume.
The IaaS meanwhile requires significant investment that only a few actors with enough financial capacity, beyond the skills, can take. Movement of staff to the computer hosting and cloud operators can also be expected because the technical and business profiles sought are different.