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The users of cloud computing services are not only able to significantly reduce their IT costs and turn their capital expenditures to operational expenditures, but also able to speed up their innovation capabilities thanks to the on-demand access to vast IT resources in the cloud. While the cloud computing offers the clients all these advantages, it creates a number of challenges for the cloud service providers who try to create successful businesses: they have to handle diverse and dynamic workloads in a highly price-competitive way to convince the potential clients to use the service delivery model instead of in-house hosting of IT functions.
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