Overview of Cloud Computing

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Assessing Cloud Computing As An Enterprise Application Service Introduction Reordering the economics of software, cloud computing is alleviating many of the capital expenses (CAPEX), inflexibility of previous-generation software platforms, and inability of on-premise applications to be customized on an ongoing basis to evolving customer needs. These are the three top factors of many that are driving the adoption of cloud computing technologies in enterprises today. Implicit in the entire series of critical success factors that are forcing the migration of on-premise to cloud computing platforms is the greater agility and speed the latter platform offers. Line-of-business executives today are increasingly defining the priorities of IT departments, often also defining budgeting cycles as well. Their primary concern is ability able to quickly get up and running on a new enterprise application, integrating its workflows into existing legacy and 3rd party systems, databases and applications, while also getting the performance gains of the new software (Bentley, 2008). Due to these factors cloud computing is evolving rapidly, changing the economics of enterprise software especially. Large-scale systems are most often purchased using Capital Expense (CAPEX) budgeting processes that often take several months ot over a year to complete. Often CAPEX-based spending on enterprise software also requires the board of directors for a company to authorize spending large amounts on new
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