Costs of Migration and Operation in the Cloud

At one level cloud computing is just Internet enabled time sharing. Instead of organizations investing in all the Information Technology (IT) assets such as hardware, software and infrastructure they need to meet business needs; cloud computing technology makes these resources available through the Internet. Cloud computing allows an organization to adopt a different economic model for meeting IT needs by reducing capital investments and increasing operational investments. Gartner has predicted that “2016 will be defining year for cloud as private cloud begins to give way to hybrid cloud, and nearly half of large enterprises will have hybrid cloud deployments by the end of 2017” [1]. McKinsey and Company predict that the total economic impact of cloud technology could be $1.7 trillion to $6.2 trillion by 2025[2].