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Cloud computing, in essence, involves accessing resources over the internet as needed. These resources encompass infrastructure as well as software, platforms, storage, databases, and development environments.
There is often confusion between cloud computing and virtualization. Simply put, virtualization pertains to technology, while cloud computing encompasses applications, deployment models, and a shift from capital expenditures (CAPEX) to operational expenditures (OPEX). Virtualization enables a single physical server in your data center to host multiple independent computing environments. It is a foundational technology for cloud computing and offers various benefits, such as optimizing hardware utilization.
Cloud providers operate data centers filled with virtualized servers, allowing each customer to utilize virtual instances of software. While cloud computing and virtualization enhance IT resource efficiency and potentially reduce costs, cloud services offer additional advantages, particularly beneficial for small to medium-sized enterprises, by providing access to applications and solutions that might otherwise be financially inaccessible.
Cloud computing generally offers cost savings, particularly beneficial for small and medium-sized enterprises. Shared infrastructure reduces initial expenses on hardware, software, and maintenance, making it an operational expenditure (OPEX) versus a capital expenditure (CAPEX) decision.
Cloud technology enables access to a variety of applications and services that may be financially out of reach for many businesses. This fosters opportunities for innovation, enhancing competitiveness in the market.
Despite concerns about reliability, software-as-a-service (SaaS) providers typically deliver products that are more reliable and secure compared to what a small business could maintain internally.
In today's environment of a growing mobile workforce, the cloud provides a flexible platform. Employees can work remotely, access applications from client sites, and collaborate on projects from any location worldwide.
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