I'd suggest that cloud computing changes the game and I think this is fueled by two key drivers: cost and time to market. Though there are some concerns about the security and maturity with cloud, it does offer planned growth based on OpEx. When it comes to business applications, a key difference from running them in the cloud in relation to a hosted service is that they run on multiple servers. Because of this, applications become location independent and processing power is virtually unlimited. Likewise, it helps reduce bandwidth costs and the personnel costs associated with maintaining a data center. Another big advantage with cloud is the ability to scale quickly, to adapt to changing needs.
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