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Cloud computing reduces spending

A new report from the Federal Times found that using cloud computing to host applications and store business-critical data saves companies money.

Aside from the savings associated with the cloud's generally lower cost, companies have found that using a dedicated server for data management helps avoid certain overhead costs, according to the news provider. In the past, improving technological capability meant spending on more IT assets. However, with the cloud, businesses can add new solutions and services without investing in expensive hardware.

Beyond the financial benefits, the news provider cites greater agility in IT as a by-product of moving to the cloud. Companies can enable employees to telework as they need to and access their services from home or on the road. Additionally, in the event of a disaster - natural or otherwise - businesses can quickly recover information, avoiding costly downtime. As these organizations grow, scalable hosting offered by cloud vendors allows them to purchase more space and avoid delays associated with new IT deployments and installations.

While private sector companies of all sizes have been among the most ardent supporters of the cloud, the public sector has been enthusiastic as well. Outgoing federal CIO Vivek Kundra worked aggressively to introduce cloud services during his tenure. His successor is expected to continue his work.

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