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of course it is Cost Effective it reduces CAPEX and OPEX for the Organization.
But Regarding Security it depends if it Reg. The Private Cloud or Public Cloud:
- For The Private Cloud The Security Concerns Should Be Very Close to same situation as the old DC Designs, and same concepts applies.
- For The Public Cloud, there is no assurance for the security from your side as a client except for the contract between you the and the Cloud Provider.
The debate over whether cloud computing is less expensive than traditional on-premise computing essentially comes down to how much more efficiently cloud providers can scale their virtualized infrastructures.
"When you virtualize your internal environment as a buyer, you do essentially what the cloud computing supplier is trying to achieve. You put multiple applications on the same platform. So some of the benefit that cloud computing offers will already have been taken, and additional overhead comes in."
A McKinsey research study released last spring made essentially the same point, that public clouds were more expensive than internal infrastructures, at least for big companies that had already sunk a lot of money into their infrastructures and optimized them using virtualization.
David Floyer's Wikibon, like the McKinsey research, concludes that a highly virtualized internal infrastructure will be more cost effective for big companies than the public cloud, at least for certain types of applications.
Ref.
http://www.itbusinessedge.com/cm/blogs/all/how-cost-effective-is-the-cloud-it-depends/?cs=41092
well, your questions is two parts:
1) Cost (economics)
it is highly dependent on which segment the organization is (industry) as well as if it is a new business openining. also, how big is the organization's IT infrastructure, is there any in-house application development? what is their BUDGET model and frequency.
in all situations, Private cloud is targetted towards capex and opex reduction, IT agility and long term cost utilization. Public cloud is targetted towards rapid time to market, business competetion and availability and in all cases Cloud is the answer to cost saving but in different aspects based on the MUST do initial analysis focusing on the organization needs and objectives.
when it comes to securuity, deffierent vendors offer deffierent levels of security measures and guarantees. and yet again it depends on what workloads or business apps are hosted on the cloud.
actual data is the buzz word, where is it being saved? on or off premisis how confedential is it? encryption needed? i believe all vendors can offer variant options and I can conclude that yes cloud is secure if yet again a must do initial analysis is perfectly conducted.
Cloud Computing is Cot Effective & Secure Solution
Cloud Computing has already helped numerous industries – from the travel industry to government contractors and every industry in between – increase productivity and save money.
Coud Computing is cost effective & Secure as on-premise costs include hardware, software, support, design builds, downtime, employees, and much more. These costs quickly add up. Cloud Computing costs, meanwhile, are much more manageable. Using a price per user per month model, Cloud Computing delivers numerous benefits for a fraction of the cost of an on-premise solution.
Save Money with Cloud Computing
Additional Benefits of Cloud Computing