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Rationale behind the cloud: Green sustainability and Business Sensibility

Posted in The cloud and the open source by Manas Ganguly on November 12, 2010

The Cloud computing potential in India is estimated at Rs.4500 crore over the next 5 years and is expected to mainly benefit enterprise SMB (small and medium business), SOHO (small office, home office) and consumer segments. This would be seeded by a rising growth in the digital information space would create a significant market opportunity for both the cloud computing and storage. Digital information in India will grow from 40,000 petabytes to 2.3 million petabytes (one petabyte equals 1,000 terabytes) over the next decade (2010 to 2020), twice as fast as the worldwide rate.

Cloud computing has come a long way from being a nebulous idea to a proper defined science and future in computing. Cloud computing works, essentially, by allowing users to stop running computing applications on their own computers and have them run, instead, by large data centers which benefit from economies of scale. These data centers, achieve operational efficiencies beyond what even large corporate IT departments can achieve-and the smaller the business, the more it energy it can save.

Green Sustainability

A study conducted by Microsoft and conducted by Accenture and WSP Environment & Energy, assessed the carbon footprint of server, networking and storage infrastructure for three different deployment sizes (100, 1,000 and 10,000 users). For large corporations, the study showed typical savings of 30 percent or more in energy consumption and carbon emissions using cloud applications, while small organizations (100 users) showed a effective carbon footprint reduction of as much as 90 percent, simply by using a shared cloud environment instead of their own servers. Thus, it is an opportunity for businesses to effectively ‘outsource’ their IT efficiency investments while working towards achieving sustainability goals.

Business Sensibility

The enterprise interest in cloud computing is not limited to large businesses only. Small and medium businesses are showing interest in adopting cloud computing model as they can dispense with issues of maintaining data centers and software upgrades. Also high IT-CAPEX investments are not required since and there are cost-efficiencies in terms of metered pay-as-much-as-you-use plans.

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