Technology has had a big impact on the development of cloud computing – when technology evolves, cloud computing must follow suit. It doesn’t follow reluctantly however, advances in technology have allowed cloud computing to grow and be able to provide what it does today.
As cloud computing has become more popular and widespread, so too has competition in the industry increased. This has led to commoditization and a reduction in costs, as well as an increasing adoption of standards. For providers to compete in this sort of market, they must offer something truly unique to differentiate themselves from their competitors.
There is a relationship between a rise in commoditization and the use of open-source software in cloud computing – a decrease in proprietary systems has led to software that is freely distributable and editable. The lack of such things as license fees, vendor lock-in and payment for upgrades and patches, has led to lower costs and an increase in what services cloud providers can provide.
Virtualization has worked to allow greater flexibility in cloud computing (as well as cut costs) and has allowed cloud computing to grow. It provides both a greater freedom of choice for the consumer and lower costs for the provider. It has allowed many benefits, such as: utility pricing, fault tolerance, support for alternative sourcing and a mobility of application among servers. Additionally, it has allowed consumers meet peak demands through the opening on virtual machines.
Cloud computing is becoming more and more popular; with it, more business are recognising the advantages of cloud accounting. If you’d like more information on how accounting in the cloud can help your business, please contact us today.