Wonder why venture invest money into software outsourcing these days? The answer is Cloud Computing. To explain in a simple way, Cloud Computing is like the conception of purchasing a land, building infrastructure and then leasing the flats. While the investor bags in big profits, customers access the benefits in small expenditure. In cloud computing, provider hosts the software on internet which is then accessed by customers who use resources as a service, paying only for what they make  use of. Google and Yahoo are the examples of cloud computing service providers.

When we review the benefits of the cloud computing it is a win-win situation for both provider and customers:

A low cost alternative to access technology:

With cloud computing coming into play, technology admission is no more a principal outlay. It more like how you utilize traditional utilities like electricity; pay for what you use and pay till you use it. This in order to enable companies to save their money on important business activities. Moreover it gives small and medium businesses an opportunity to access technology as a resource.

Optimum utilization and dispersion of cost:

While incorporating infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) cloud computing brings economies of costs and resources. Pooling of resources additionally guides to superior performance, load balancing (as the load capacity is centrally managed) and complete use of server capacity. In this way cloud computing results in enhanced resource consumption, which is exceptional from sustainability viewpoint.

Greater independence and remote access:

In cloud computing the infrastructure is maintained by a intermediary provider and accessed by customers by way of internet using web browser. In this way users can access the utility independent of place and infrastructure from a PC, laptop or a handheld device. This has also simplified the idea of offshore software development through the places offering relatively low cost IT outsourcing.

Enhanced monitoring and simplified usage:

On one hand where the model improve security and monitoring within a centralized data access, it simplifies usability by providing self service system interfaces on the other. The user need not be worried about back end engineering and parameters. Besides this, user does not need to install the application on his system, saving him from the trouble of software maintenance, ongoing operation, and support.

The idea is booming step by step and there is a lot to come in the upcoming time. With Offshore outsourcing becoming popular ever more entrepreneurs are investing in the countries with low infrastructure and development cost and then dispatching their cloud computing utility models globally.

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