Cloud computing relies on restricting sharing of resources to achieve coherence and economies of scale, similar to a utility over a network.
Foundation of cloud computing is the broader concept of converged infrastructure and shared services. Proponents claim that cloud computing allows companies to avoid upfront infrastructure costs, and focus on projects that differentiate their businesses instead of on infrastructure. Proponents also claim that cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable business demand.Cloud providers typically use a “pay as you go” model.The present availability of high-capacity networks, low-cost computers and storage devices as well as the widespread adoption of hardware virtualization, service-oriented architecture, and autonomic and utility computing have led to a growth in cloud computing.
Cloud vendors are experiencing growth rates of 50% per annum.