Similar to wholesalers, public Cloud providers base their business model on mass acquisition of IT resources, which are made available to Cloud consumers for attractive prices. This helps organizations to access powerful infrastructure without any infrastructure costs.
The most common economic rationale for investing in Cloud-based IT resources is to reduce initial IT investments, such as hardware, software purchases, and ownership costs. A cloud's measured usage characteristic represents a feature set that allows measured operational expenditures (directly related to business performance) to replace anticipated capital expenditures. This is also referred to as proportional cost.
The reduction of costs allow enterprises to start small, to increase IT resource allocation as needed. Moreover, lower initial expenses allow for capital to be redirected to core business investments. Opportunities to decrease costs are derived from the deployment and operation of large-scale data...