Cloud computing is trending these days in many business organization, just because of benefits it offers in terms of infrastructure and reduced maintenance cost. It increases the efficiency of storage, provides easy access to data, data centralization. Three stages of advancement in cloud computing are Software as a Service, Platform as a Service, Infrastructure as a Service. Economic incentive as compared to traditional IT structure is major driving factor for migration to cloud model. Distinguished factor is that customers only use what they need and pay for what they are actually using. In standard conditions when there is a necessity to provide some kind of IT solution, total cost consist of IT equipment (servers, Storage), the cost of the software and integration with hardware, maintenance cost. and these costs are on to implementing IT solution organization. Sometimes these costs are high for small scale organization.
Cloud computing plays significant role is this case. Second issue worth noticing while planning for IT solution or implementation is opportunity cost, as IT maintenance cost are close to 70-80% of total cost. business agility also increases with migration to cloud, agility is the ability of any organization to adapt rapidly and cost efficiently in response to changes in the business environment. Cloud computing method of storing allows to scale and share IT resources across groups and workloads, in turn resulting in improved performance and availability of information. here is now the example of private fashion retail store- which hosted own server infrastructure internally to provide the retail platform and point of sale for all stores which required private network, creating problem keeping all 12 stores in synch. With migration to cloud, gained cost saving and no necessity of IT infrastructure management to retail business owners. additionally, company decided to host a number of business activities with the use of cloud services. To manage email, calendar and contact services used google apps.