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Cloud computing allows you to convert capital expenditures to operating expenditures. In traditional I.T. it is necessary to spend money up front to purchase servers, network infrastructure, and other hardware. The capital expenditures for a new initiative can be significant, and often getting approval and funding can hold up or delay important projects. In cloud computing, you are in a pay-as-you-go situation where everything is an operating expenditure. There are no up-front charges aside from your own software development.
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