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Financing the Cloud

By Ron Arrington
May 20, 2013

The rapid emergence of cloud computing technologies is prompting leaders of businesses large and small to consider how to put them to use and to what extent. Security, of course, is a topmost concern, influencing firms' decisions about whether to employ a public cloud, a private one, or a hybrid solution that encompasses both. How cloud capabilities will be integrated into existing IT infrastructure is another issue, as is how to choose from a wealth of emerging cloud service providers.

One subject not getting near enough attention, though, is the role IT financing will play as companies migrate to the cloud in a bid to save costs and bring added flexibility to their business models. The thinking seems to be that the need for IT equipment will be dramatically reduced ' that it will somehow evaporate in the cloud. In reality, IT equipment is the backbone of the infrastructure that supports the day-to-day workings of the cloud. After all, technology equipment will still be required in order to store data and run applications from the cloud.

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