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== Value proposition ==
Cloud computing can enable shorter time to market by providing pre-configured tools, scalable resources, and managed services, allowing users to focus on their core business value instead of maintaining infrastructure. Cloud platforms can enable organizations and individuals to reduce upfront capital expenditures on physical infrastructure by shifting to an operational expenditure model, where costs scale with usage. Cloud platforms also offer managed services and tools, such as artificial intelligence, data analytics, and machine learning, which might otherwise require significant in-house expertise and infrastructure investment. <ref name=":7">{{Cite book |title=Cloud Computing: Concepts, Technology & Architecture |isbn=978-0133387520}}</ref><ref name=":8">{{Cite book |title=Cloud Computing, revised and updated edition |isbn=978-0262546478}}</ref><ref name=":9">{{Cite book |title=Cloud Computing |isbn=978-1284233971}}</ref>
Advocates of public and hybrid clouds claim that cloud computing allows companies to avoid or minimize up-front [[IT infrastructure]] costs. Proponents also claim that cloud computing allows [[Company|enterprises]] to get their [[Application software|applications]] up and running faster, with improved manageability and less maintenance, and that it enables IT teams to more rapidly adjust resources to meet fluctuating and unpredictable demand,<ref name="aws.amazon">{{cite web|date=2013-03-19|title=What is Cloud Computing?|url=https://aws.amazon.com/what-is-cloud-computing/|access-date=2013-03-20|work=Amazon Web Services|archive-date=2013-03-22|archive-url=https://web.archive.org/web/20130322083951/http://aws.amazon.com/what-is-cloud-computing/|url-status=live}}</ref><ref>{{cite web|last=Baburajan|first=Rajani|date=2011-08-24|title=The Rising Cloud Storage Market Opportunity Strengthens Vendors|url=http://it.tmcnet.com/channels/cloud-storage/articles/211183-rising-cloud-storage-market-opportunity-strengthens-vendors.htm|access-date=2011-12-02|publisher=It.tmcnet.com|archive-date=2012-06-17|archive-url=https://web.archive.org/web/20120617161919/http://it.tmcnet.com/channels/cloud-storage/articles/211183-rising-cloud-storage-market-opportunity-strengthens-vendors.htm|url-status=live}}</ref><ref>{{cite web|author=Oestreich, Ken|date=2010-11-15|title=Converged Infrastructure|url=http://www.thectoforum.com/content/converged-infrastructure-0|url-status=dead|archive-url=https://web.archive.org/web/20120113094920/http://www.thectoforum.com/content/converged-infrastructure-0|archive-date=2012-01-13|access-date=2011-12-02|work=CTO Forum|publisher=Thectoforum.com}}</ref> providing '''burst computing''' capability: high computing power at certain periods of peak demand.<ref>Simpson, Ted; Jason Novak, ''Hands on Virtual Computing'', 2017, {{ISBN|1337515744}}, [https://books.google.com/books?id=wtdUDgAAQBAJ&pg=PA451 p. 451.] {{Webarchive|url=https://web.archive.org/web/20230117181025/https://books.google.com/books?id=wtdUDgAAQBAJ&pg=PA451 |date=2023-01-17 }}</ref>
While cloud computing can offer cost advantages through effective resource optimization, organizations often face challenges such as unused resources, inefficient configurations, and hidden costs without proper oversight and governance. Many cloud platforms provide cost management tools, such as AWS Cost Explorer and Azure Cost Management, and frameworks like FinOps have emerged to standardize financial operations in the cloud. Cloud computing also facilitates collaboration, remote work, and global service delivery by enabling secure access to data and applications from any ___location with an internet connection. <ref name=":7" /><ref name=":8" /><ref name=":9" />
Additional value propositions of cloud computing include:
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Cloud providers offer various redundancy options for core services, such as managed storage and managed databases, though redundancy configurations often vary by service tier. Advanced redundancy strategies, such as cross-region replication or failover systems, typically require explicit configuration and may incur additional costs or licensing fees. <ref name=":7" /><ref name=":8" /><ref name=":9" />
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! Topic
Cloud environments operate under a shared responsibility model, where providers are typically responsible for infrastructure security, physical hardware, and software updates, while customers are accountable for data encryption, identity and access management (IAM), and application-level security. These responsibilities vary depending on the cloud service model—Infrastructure as a Service (IaaS), Platform as a Service (PaaS), or Software as a Service (SaaS)—with customers typically having more control and responsibility in IaaS environments and progressively less in PaaS and SaaS models, often trading control for convenience and managed services. <ref name=":7" /><ref name=":8" /><ref name=":9" />
! Description
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| Cost reductions
| A public-cloud delivery model converts [[capital expenditure]]s (e.g., buying servers) to [[operational expenditure]].<ref>{{cite web |url=http://www.cloudave.com/link/recession-is-good-for-cloud-computing-microsoft-agrees |title=Recession Is Good For Cloud Computing – Microsoft Agrees |publisher=CloudAve |access-date=2010-08-22 |date=2009-02-12 |archive-date=2010-08-14 |archive-url=https://web.archive.org/web/20100814013751/http://www.cloudave.com/link/recession-is-good-for-cloud-computing-microsoft-agrees |url-status=live }}</ref> This purportedly lowers [[barriers to entry]], as infrastructure is typically provided by a third party and need not be purchased for one-time or infrequent intensive computing tasks. Pricing on a utility computing basis is "fine-grained", with usage-based billing options.<ref name="idc">{{cite web |url=http://blogs.idc.com/ie/?p=190 |title=Defining 'Cloud Services' and "Cloud Computing" |publisher=IDC |date=2008-09-23 |access-date=2010-08-22 |url-status=dead |archive-url=https://web.archive.org/web/20100722074526/http://blogs.idc.com/ie/?p=190 |archive-date=2010-07-22 }}</ref> The e-FISCAL project's state-of-the-art repository<ref>{{cite web|url=http://www.efiscal.eu/state-of-the-art|title=State of the Art {{pipe}} e-FISCAL project|website=www.efiscal.eu|access-date=2012-04-19|archive-date=2013-01-27|archive-url=https://web.archive.org/web/20130127204905/http://www.efiscal.eu/state-of-the-art|url-status=live}}</ref> contains several articles looking into cost aspects in more detail, most of them concluding that costs savings depend on the type of activities supported and the type of infrastructure available in-house.
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| Device independence
| Device and ___location independence<ref name="yarmis">{{cite web |last=Farber |first=Dan |url=http://news.cnet.com/8301-13953_3-9977049-80.html |title=The new geek chic: Data centers |publisher=[[CNET News]] |date=2008-06-25 |access-date=2010-08-22 |archive-date=2013-11-04 |archive-url=https://web.archive.org/web/20131104055614/http://news.cnet.com/8301-13953_3-9977049-80.html |url-status=dead }}</ref> enable users to access systems using a web browser regardless of their ___location or what device they use (e.g., PC, mobile phone). As infrastructure is off-site (typically provided by a third-party) and accessed via the Internet, users can connect to it from anywhere.<ref name="idc" />{{efn|The European Commission has observed that locations of data and processes "[do] not in principle have to concern the user", but they may have "an important bearing on the applicable [[legal jurisdictions|legal environment]]".<ref name=ec529 />}}
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| Maintenance
| Maintenance of cloud environment is easier because the data is hosted on an outside server maintained by a provider without the need to invest in data center hardware. IT maintenance of cloud computing is managed and updated by the cloud provider's IT maintenance team which reduces cloud computing costs compared with on-premises data centers.
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| Multitenancy
| Multitenancy enables sharing of resources and costs across a large pool of users thus allowing for:
* centralization of infrastructure in locations with lower costs (such as real estate, electricity, etc.)
* peak-load capacity increases (users need not engineer and pay for the resources and equipment to meet their highest possible load-levels)
* utilization and efficiency improvements for systems that are often only 10–20% utilized.<ref name="amazon">{{Cite journal | url = http://www.businessweek.com/magazine/content/06_46/b4009001.htm | title = Jeff Bezos' Risky Bet | journal = Business Week | access-date = 2008-08-21 | archive-date = 2012-06-27 | archive-url = https://web.archive.org/web/20120627012051/http://www.businessweek.com/magazine/content/06_46/b4009001.htm | url-status = dead }}</ref><ref>{{Cite book|last1=He|first1=Sijin|first2=L.|last2=Guo|first3=Y.|last3=Guo|first4=M.|last4=Ghanem|title=2012 IEEE Fifth International Conference on Cloud Computing |chapter=Improving Resource Utilisation in the Cloud Environment Using Multivariate Probabilistic Models |s2cid=15374752|publisher=2012 2012 IEEE 5th International Conference on Cloud Computing (CLOUD) |doi=10.1109/CLOUD.2012.66|isbn=978-1-4673-2892-0|pages=574–581|date=June 2012}}</ref>
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| Performance
| Performance is monitored by IT experts from the service provider, and consistent and loosely coupled architectures are constructed using [[web services]] as the system interface.<ref name="idc" /><ref>He, Qiang, et al. "Formulating Cost-Effective Monitoring Strategies for Service-based Systems." (2013): 1–1.</ref>
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| Productivity
| Productivity may be increased when multiple users can work on the same data simultaneously, rather than waiting for it to be saved and emailed. Time may be saved as information does not need to be re-entered when fields are matched, nor do users need to install application software upgrades to their computer.
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| Availability
| Availability improves with the use of multiple redundant sites, which makes well-designed cloud computing suitable for [[business continuity]] and [[IT disaster recovery|disaster recovery]].<ref>{{cite web |last=King |first=Rachael |url=http://www.businessweek.com/technology/content/aug2008/tc2008083_619516.htm |title=Cloud Computing: Small Companies Take Flight |work=Bloomberg BusinessWeek |date=2008-08-04 |access-date=2010-08-22 |archive-date=2010-08-07 |archive-url=https://web.archive.org/web/20100807234154/http://www.businessweek.com/technology/content/aug2008/tc2008083_619516.htm |url-status=dead }}</ref>
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| Scalability and elasticity
| Scalability and elasticity via dynamic ("on-demand") provisioning of resources on a fine-grained, self-service basis in near real-time,<ref name="vmstartuptime2012">{{Cite book|last=Mao|first=Ming|author2=M. Humphrey|title=2012 IEEE Fifth International Conference on Cloud Computing |chapter=A Performance Study on the VM Startup Time in the Cloud |s2cid=1285357|year=2012|doi=10.1109/CLOUD.2012.103|isbn=978-1-4673-2892-0|page=423}}</ref><ref>{{Cite journal | doi=10.1109/TC.2013.30|title = Workload-Based Software Rejuvenation in Cloud Systems| journal=IEEE Transactions on Computers| volume=62| issue=6| pages=1072–1085|year = 2013|last1 = Bruneo|first1 = Dario| last2=Distefano| first2=Salvatore| last3=Longo| first3=Francesco| last4=Puliafito| first4=Antonio| last5=Scarpa| first5=Marco|s2cid = 23981532}}</ref>{{efn|The VM startup time {{clarify|date=June 2024}} varies by VM type, ___location, OS and cloud provider.<ref name="vmstartuptime2012"/>}} without users having to engineer for peak loads.<ref name=DQ>{{Cite book| title=Defining and Quantifying Elasticity of Resources in Cloud Computing and Scalable Platforms| last1=Kuperberg| first1=Michael| last2=Herbst| first2=Nikolas| last3=Kistowski| first3=Joakim Von| last4=Reussner| first4=Ralf| url=https://publikationen.bibliothek.kit.edu/1000023476| publisher=[[Karlsruher Institut für Technologie]]| date=1 January 2011| access-date=12 December 2023| doi=10.5445/IR/1000023476| doi-broken-date=1 November 2024| url-status=live| archive-date=6 April 2013| archive-url=https://web.archive.org/web/20130406155607/http://digbib.ubka.uni-karlsruhe.de/volltexte/1000023476}}</ref><ref>{{cite web|title=Economies of Cloud Scale Infrastructure| date=13 May 2010 |url=https://www.youtube.com/watch?v=nfDsY3f4nVI| archive-url=https://ghostarchive.org/varchive/youtube/20211027/nfDsY3f4nVI| archive-date=2021-10-27|publisher=Cloud Slam 2011|access-date=13 May 2011}}{{cbignore}}</ref><ref name="He 15–22">{{Cite book|last=He|first=Sijin|author2=L. Guo |author3=Y. Guo |author4=C. Wu |author5=M. Ghanem|title=2012 IEEE 26th International Conference on Advanced Information Networking and Applications |chapter=Elastic Application Container: A Lightweight Approach for Cloud Resource Provisioning |s2cid=4863927|publisher=2012 IEEE 26th International Conference on Advanced Information Networking and Applications (AINA) |doi=10.1109/AINA.2012.74|isbn=978-1-4673-0714-7|pages=15–22|date=March 2012}}</ref> This gives the ability to scale up when the usage need increases or down if resources are not being used.<ref>{{Cite journal|title = Cloud computing – The business perspective|journal = Decision Support Systems|date = 2011-04-01|pages = 176–189|volume = 51|issue = 1|doi = 10.1016/j.dss.2010.12.006|first1 = Sean|last1 = Marston|first2 = Zhi|last2 = Li|first3 = Subhajyoti|last3 = Bandyopadhyay|first4 = Juheng|last4 = Zhang|first5 = Anand|last5 = Ghalsasi}}</ref> The time-efficient benefit of cloud scalability also means faster time to market, more business flexibility, and adaptability, as adding new resources does not take as much time as it used to.<ref>[https://symphony-solutions.com/insights/cloud-computing-scalability Why Cloud computing scalability matters for business growth] {{Webarchive|url=https://web.archive.org/web/20210709190542/https://symphony-solutions.com/insights/cloud-computing-scalability |date=2021-07-09 }}, Symphony Solutions, 2021</ref> Emerging approaches for managing elasticity include the use of machine learning techniques to propose efficient elasticity models.<ref name="ElsevierElasticity">{{Cite journal | doi=10.1016/j.future.2018.11.049|title = Autonomic decentralized elasticity based on a reinforcement learning controller for cloud applications| journal= Future Generation Computer Systems| volume=94| pages= 765–780|year = 2019|last1 = Nouri |first1 = Seyed| last2= Han| first2= Li| last3= Srikumar| first3= Venugopal| last4= Wenxia| first4= Guo| last5= MingYun| first5= He| last6= Wenhong| first6= Tian|s2cid = 59284268}}</ref>
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|[[Computer security|Security]]
|Security can improve due to centralization of data, increased security-focused resources, etc., but concerns can persist about loss of control over certain sensitive data, and the lack of security for stored [[kernel (operating system)|kernel]]s. Security is often as good as or better than other traditional systems, in part because service providers are able to devote resources to solving security issues that many customers cannot afford to tackle or which they lack the technical skills to address.<ref>{{cite web |last=Mills |first=Elinor |url=https://www.cnet.com/news/cloud-computing-security-forecast-clear-skies/ |title=Cloud computing security forecast: Clear skies |publisher=CNET News |date=2009-01-27 |access-date=2019-09-19 |archive-date=2020-01-28 |archive-url=https://web.archive.org/web/20200128225657/https://www.cnet.com/news/cloud-computing-security-forecast-clear-skies/ |url-status=live }}</ref> However, the complexity of security is greatly increased when data is distributed over a wider area or over a greater number of devices, as well as in multi-tenant systems shared by unrelated users. In addition, user access to security [[audit log]]s may be difficult or impossible. Private cloud installations are in part motivated by users' desire to retain control over the infrastructure and avoid losing control of information security.
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== Factors Influencing Adoption and Suitability of Cloud Computing ==
===Public===
{{self-reference|For a comparison of cloud-computing software and providers, see [[Cloud-computing comparison]]}}
Cloud services are considered "public" when they are delivered over the public Internet, and they may be offered as a paid subscription, or free of charge.<ref>{{cite web|first=Margaret|last=Rouse|title=What is public cloud?|access-date=12 October 2014|url=http://searchcloudcomputing.techtarget.com/definition/public-cloud|publisher=Definition from Whatis.com|archive-date=16 October 2014|archive-url=https://web.archive.org/web/20141016022343/http://searchcloudcomputing.techtarget.com/definition/public-cloud|url-status=live}}</ref> Architecturally, there are few differences between public- and private-cloud services, but security concerns increase substantially when services (applications, storage, and other resources) are shared by multiple customers. Most public-cloud providers offer direct-connection services that allow customers to securely link their legacy data centers to their cloud-resident applications.<ref name="idc">{{cite web |date=2008-09-23 |title=Defining 'Cloud Services' and "Cloud Computing" |url=http://blogs.idc.com/ie/?p=190 |url-status=dead |archive-url=https://web.archive.org/web/20100722074526/http://blogs.idc.com/ie/?p=190 |archive-date=2010-07-22 |access-date=2010-08-22 |publisher=IDC}}</ref><ref>{{cite web|url=https://cloud.oracle.com/en_US/fastconnect|title=FastConnect {{!}} Oracle Cloud Infrastructure|website=cloud.oracle.com|access-date=2017-11-15|archive-date=2017-11-15|archive-url=https://web.archive.org/web/20171115232022/https://cloud.oracle.com/en_US/fastconnect|url-status=live}}</ref>
Several factors like the functionality of the solutions, [[Costing|cost]], integrational and [[organization]]al aspects as well as [[Security|safety & security]] are influencing the decision of enterprises and organizations to choose a public cloud or [[On-premises software|on-premises]] solution.<ref>{{Cite journal|last1=Schmidt|first1=Rainer|last2=Möhring|first2=Michael|last3=Keller|first3=Barbara|date=2017|title=Customer Relationship Management in a Public Cloud environment - Key influencing factors for European enterprises|journal=HICSS|series=Proceedings of the 50th Hawaii International Conference on System Sciences (2017)|doi=10.24251/HICSS.2017.513|hdl=10125/41673|isbn=9780998133102|doi-access=free|hdl-access=free}}</ref>
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