Cloud

Cloud Computing: Risks and Rewards

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Executive Summary

A key development in the evolution to cloud computing has been the virtualization of server infrastructure. Moving this virtualization to "The Cloud," third-party service providers can virtualize resources for multiple tenants across an entire infrastructure. As it has for enterprises, virtualization enables service providers to maximize the efficiency of large servers and processing power and it enables these providers to serve many more clients using a fraction of the computer hardware that a no virtualized environment would require. In essence, virtualization gives service providers economies of scale - making it possible for them to offer hardware, networks, software applications, and support at a lower operational cost than their clients could achieve by building that infrastructure themselves.

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