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How can cloud computing help me avoid capital expenditure?
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2 Answers
In any of the three Cloud Service Models, IaaS (Infrastructure as a service), PaaS (Platform as a service), SaaS (Software as a service), you forgoe the cost of purchasing the computer equipment. Though avoiding capital expenditure has to be one of the top (if not the #1) benefit of Cloud Computing, rest assured, you're paying elsewhere. The simplest way of looking at the expenditure aspect is that you are trading capital costs for operational costs.
Now that I have "simply" answered your question, PLEASE take the time to look into the countless aspects and considerations of Cloud Computing - of which to-capital-spend-or-not-to-capital-spend is but one.
Steve Romero, IT Governance Evangelist @itgEvangelist
Using “cloud” resources turns your IT capital money you would need to spend every 3 years into a monthly operational expense. It turns your physical purchases into services you buy from a vendor and not widgets you purchase. This can help many businesses in this time where cash may not be easy to come by. The 3 year TCO is almost always higher with a cloud solution and you do not have the fixed assets to show on your books. Due to that using cloud solutions don’t work financially for some businesses. If having a more predictable cost model is attractive or you are not able to acquire the cash for a capital investment of IT then the cloud model can work for you.
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