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Cloud computing has promised significant advantages due to low start-up costs and quick delivery of computing resources, as well as its pay-as-you-go cost structure. It also promises ease of management, scalability of systems, and device and location independence, enabling companies to accelerate innovation in response to evolving market demands and trends.
However, while large enterprises can easily realise the full benefits of cloud with tier one private and public cloud providers offering tools and smarts to help manage cloud system performance, for SMEs it is a different story. Network latency, cost blowouts and slow application run-times are leading many SMEs to experience pain not profits.
While cloud can deliver the same benefits to SMEs as it does to larger enterprises, these organisations need to be aware of the pitfalls of each cloud solution as much as the benefits before diving head first into to a new way of doing business.
Organisations need to be wary of a provider asking for an upfront fee, as this could mean they need your cash to purchase equipment. This could be an indicator that this is simply a hosted service, rather than a true cloud environment.Andrew Tucker
A true cloud provider, however, will ensure all equipment is already in place, enabling scalability without asking for more cash to acquire more hardware. As the business grows, the system will automatically scale without the need for internal network management or intervention.Andrew Tucker
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