Author calculations show the cost savings can be up to 50 percent of normal. In fact, the greater the need for computing, IT cost savings gained through its use will be even greater. Such small and medium enterprises or shops will be more interested in technology that can be customized with easy, cheap operating costs, and no initial investment offered by technologies such as this one.
On the other hand, the flexibility of the company itself is relatively low making it difficult to enter a new method in the existing system which is well-established, rigid, and often go many years of procurement contracts.
Another obstacle for large firms is about data privacy, which in layman’s concept of computing fully entrusted to third parties. Method of software as a service is actually diminishing privacy. Given the various benefits of cloud computing than the existing system, they will try to use on systems that are complementary.
- Two Crucial Issues of Information Technology 2011-1
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