The Economics, Concepts and Fundamentals of Cloud Computing
The flexibility of the cloud computing layers and the increased production ratio are giving the organizations a prominent reason to shift to the cloud. It is a boon to both the MNCs and the SMBs.
Cloud computing refers to the computing services like servers, databases, storage, networking, software, analytics and more over the internet (on cloud). When we come to the use of some service, we are concerned about the consumption and production ratio of those services. The main concerns behind that are the cost, speed, productivity, performance.
Cloud Computing as an Economy of Scale
Shifting to cloud computing brings significant advantages to an organization in various ways:
It helps in terms of cost savings.
It efficiently boosts up the speed and eventually accelerates innovation.
It is very user-friendly.
It provides better security and many more.
Cloud computing has revolutionized the way organizations perform their daily processes. Such technology allows businesses to pay on demand with a profound impact on the cost structure, turning some of the fixed costs in marginal costs of production. Such changes will have a substantial impact to create new business and eventually increase macroeconomic growth.
This will directly impact on the public sector spending and the indirectly on the tax revenues. It focuses on comparing many pricing models techniques employed and proposed based on many aspects such as fairness, pricing approach, and utilization period. This approach provides a base for designing better models in the future.
The key benefits of these cloud services are -
You get a pay-as-you-go with minimal or no upfront costs.
You only pay according to your usage, not for the unused part.
Flexibility in terms of availability of the resources so that you can use it when it is needed.
You get the provisioning on demand and also get automated recovery in case of any loss caused due to the occurrence of some disaster.
The technology of distributed data processing in which some scalable information, resources and capacities are provided as a service is referred to as CLOUD COMPUTING. The concept behind cloud computing is built on different layers, each layer providing a distinct level of functionality.
IaaS ( Infrastructure as a Service ) - The first layer ( or the base layer ) is the Infrastructure layer. It consists of servers, network devices, storage disks, etc. As the name suggests, infrastructure is provided as a service. In other terms, you don’t have control over the underlying infrastructure but you have control of the OS ( operating system), storage, deployment application. PODs (Print On Demand) are the best example of IaaS.
PaaS ( Platform as a Service ) - The next layer is the Platform layer. As the name suggests, Platform is provided as a service i.e it provides access to operating systems and associated services. You have access to deploy the application and application hosting configuration.
SaaS ( Software as a Service ) - The top layer is the application layer. It basically consists of the applications that are run over the cloud and are provided to the users on demand. As the name suggests Software is provided as a service to the users. G Suite is the example of SaaS.
In this way, the cloud computing layers are embedded "as a service" components.
