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Tuesday, April 20, 2010

Benefits of Cloud Computing: Pay for what you use

One of the most distinguishing features of cloud based application platforms is the ability to dynamically adjust the computing resources available to an application, and pay for those resources accordingly. Amazon calls this capability elasticity: “Amazon EC2 enables you to increase or decrease capacity within minutes, not hours or days. You can commission one, hundreds or even thousands of server instances simultaneously.”

Others are drawing parallels between cloud computing and electric utilities, which provide resources on demand based on consumption. Like your electric bill, your cloud computing bill can be unexpectedly large if you don’t keep a close watch on the resources your solutions are utilizing.

Paying for what you use, and being able to adjust what you are using dynamically at the touch of a button, is an enormous benefit, but it also brings with it a new consumption model that you will need to understand. Your organization may need to make adjustments to its procedures and policies to ensure that the utilization of cloud computing resources is monitored and controlled. Otherwise, the cost could be great.