Cloud helps companies shrink IT costs dramatically

20:20 10th February 2010

Cloud computing has reduced IT costs in Vodafone and Channel 4 by 90 per cent, the companies have said.

Speaking at the Powered by Cloud conference in London, representatives of the groups said the cost of their cloud-based processing was a tenth of traditional in-house computing.

A representative of Verizon, which offers cloud computing, said the company's customers were saving by 25 per cent and 75 per cent of traditional costs.

Phil Dally, senior enterprise architect for Orange, the mobile network operator, said the company had shut down two data centres as a result of the efficiencies achieved by consolidating a number of applications on cloud servers.

In other news, European governments should open up wireless networks and deliver affordable broadband spectrum to support cloud computing, according to Microsoft general counsel.

"Continuity of access will encourage consumers to make greater use of cloud computing services and SMEs to focus more on developing new content and services," said Brad Smith.

Written by Derek Oldman

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