22 Jul 2009

Cloud computing 'offers financial benefits'

Companies may be able to reap financial benefits by switching to cloud computing, it has been suggested.

Seen as a more efficient alternative to current technology business models, organisations can gain from cloud data management applications thanks to its speed and agility, information-management.com asserts.

In addition, businesses may be able to reduce costs by employing the system, a factor that may be useful in the current economic downturn.
Insurance companies in particular have made use of the financial benefits associated with cloud computing, according to the website.

"Driven by the necessity to both innovate and reduce costs, more insurers are considering cloud computing as a strategic initiative," it states.

Businesses are able to focus more on innovations since storing processes and data "in the cloud" means that issues from servers to disaster recovery are outsourced, thereby cutting costs.

Cloud computing is a more secure way of storing information, according to Google. Cited in Computer Weekly, the internet giant stated that loss of information on traditional storage devices is avoided by storing all information in a secure online domain.