One of the uses of Cloud Computing is to provide an environment in which organizations can run their own custom applications in the Cloud. This is important because most organizations today have an IT presence whose purpose is to build custom software that gives the organization a competitive advantage.
Unfortunately, the problem with custom built software is that it is expensive. Organizations have to pay a lot of upfront costs to purchase hardware and acquire software licenses (operating systems, databases, etc.). These upfront costs that are amortized over several years are known as capital expenditures. Additionally, ongoing support for hardware, software, and the application itself can be high.
The goal of a Cloud Computing is to drive down upfront cost, drive down ongoing costs, and take complexity out of an application’s lifecycle.
In his latest article, Keith Pijanowksi drills into the cost models and architectural nuances of cloud computing.