Cloud computing can save money for companies

Published: Thursday July 28, 2011 MYT 1:53:00 PM
Updated: Thursday July 28, 2011 MYT 1:54:39 PM



view: http://techcentral.my/news/story.aspx?file=/2011/7/28/it_news/20110728140302&sec=it_news

WEBSTER:'Companies are (typically) spending about 73% of their budget to ensure these computer systems are running smoothly, while only 27% of the budget is spent on improving or innovating business processes.'

KUALA LUMPUR:

Cloud-computing solutions have organisations storing data in the "cloud" than on their own computer systems. So these organisations pay only for what they use - saving money on physical infrastructure expansion.
"A huge percentage of an organisation's budget goes to maintaining the existing computer infrastructure in its workplace," said David Webster, EMC president for South-East Asia, Australia and New Zealand.

"Companies are (typically) spending about 73% of their budget to ensure these computer systems are running smoothly, while only 27% of the budget is spent on improving or innovating business processes."
He said the challenge is to shrink the 73% portion and invest the savings on enhancing business processes. By doing so, organisations would have an efficient computer system and higher levels of productivity in the workplace.

The other thing that many organisations have to deal with is data deluge. According to Webster, the digital universe will soon contain a humongous amount of unstructured data, such as e-mail messages, images, audio and video.
"This will put a huge strain on company servers and will cause the number of IT personnel worldwide to increase by the tens of millions in about 10 years," he said.

These will translate into higher operating costs for organisations, and if left unchecked could affect profit margins or operating budgets.
Webster believes that cloud-computing solutions are a key technology to staving this off.
Organisations must look into cloud-computing solutions as a means of reducing costs, said information infrastructure technology and solutions provider EMC Corp.