Benefits and challenges

Benefits of cloud computing

When we consider cloud computing, it offers a handful of benefits. First, cloud computing reduces the need to invest into self-hosted servers or services, as they can be bought on demand. Second, as cloud computing services are available on-demand, they can be scaled up and down depending on demand, allowing scaling of applications without the need to e.g. invest into new on-premises hardware. Third, as the underlying infrastructure, platform, or services are maintained by the cloud computing provider, the use of cloud computing can lead to increased reliability and security of the services, as the vendors have dedicated staff to maintain the services. Finally, cloud computing can also potentially lead to reduced environmental impact, as the underlying infrastructure is shared among multiple users, which reduces the overall energy consumption, not to mention the potential in eco-friendly cloud markets.

For additional information, see e.g. EU commission efforts on green cloud and green data centres.

Challenges of cloud computing

There exists also handful of challenges, which first of all can include security, privacy, and legislative concerns, especially in public clouds, as the reliance on third-party services can introduce additional risks and additional care may need to be taken regarding to where to store the data and where to process the data. Second, when using cloud computing resources, there is a risk of downtime that cannot be managed by a local team, as the cloud computing provider is responsible of the services. Third, as the cloud computing resources are (typically) not on premise, the latency of the services can be an issue, as can potential bandwidth limitations. Finally, there is also a need to train staff to be able to work with the cloud services, and to keep up with the potential changes imposed by the cloud service providers.