Dell planned to invest $1 billion on Cloud Computing

Cloud computing has been booming over the past few years, but as with most new and innovative technologies, most people have heard about cloud computing, but few know how it actually works and even lesser people know the benefits they can derive from using cloud computing technology.

Dell planned to invest $1 billion over the next three years to consolidate its position as a cloud computing provider. Last week saw the opening of a Dell data center at Shanghai to host private and public clouds for delivery of data storage and off premise applications. The first data center for Dell in the Asia Pacific and Japan region, the center will conduct research and development of reference architecture of cloud services and various other applications. The company has cloud computing centers in Ireland, Singapore, Frankfurt, Washington DC, Chicago and Texas. Paris, Tokyo, Sydney, New York and Sao Paulo are other places where Dells plans to have cloud computing centers by the year end.

Small business that need to economize during these economically turbulent times, can turn to cloud computing as an innovative way to cut costs and maximize value, achieve growth and stability. However, the range and quality of services offered by the various cloud computing providers differ and businesses should carefully weigh their options, find and choose only those services that suit their requirements.

Computing resources provided to business establishments as an external pay-as-you-go service, via the internet is what basic cloud computing is all about. All resources will be available from the cloud but companies will use and pay for only those services they need, and those that are economically viable for them. Small businesses that wish to expand but are unable to do so because of transportation, connectivity and administration costs as prohibitive factors can benefit greatly by using cloud computing. Franchising or establishing a network of small business whose infrastructure and IT applications are centrally managed by cloud computing services will allow businesses to set up and commence operations as quickly as possible so that they are able to monetize without any delay, which translates into increased profits as time and money are saved because of the convenience afforded to them by cloud computing.

IT resources available to small businesses at affordable costs because of cloud computing, allow them to compete with large enterprises on a level playing field. Public cloud, private cloud and hybrid clouds are the services offered by cloud computing providers. Joyent, Microsoft, Amazon EC2, Google, IBM Nephoscale and are some top cloud vendors already in the business.