In an attempt to gain a competitive edge, businesses are increasingly looking for new and innovative ways to cut costs while maximizing profits especially now that the world is experiencing economic downturn. Firms recognize that they need to grow and as a result are under pressure to save money. This has forced the realization that new ideas and methods may produce better results than the tried and tested formulas of old. It is the growing acceptance of innovative technologies that has seen cloud computing become a realizable innovation in information technology (IT). Many have heard of cloud computing, but far fewer actually understand what it is and, more importantly, how it can benefit them. In this research paper, we focused on the economics of cloud rather than technologies; we outline the underlying business benefits it can bring to various users and the economics of scale focusing on what makes it truly different from client/server.
