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April 2013, Volume 2, Number 4

Cloud computing services: Lease vs. own

Any financial adviser will tell you it's better to own than to lease, but that pragmatism is ignored when it comes to cloud computing. More and more companies pay cloud providers monthly subscription fees for instant access to the latest and greatest infrastructure, platforms and applications that they can't afford to buy outright. The market for leased IT platforms, applications and operations is so hot right now that companies can get just about anything as a service (XaaS) -- and they seek out those services with the hope of lowering IT expenses. Nearly three quarters -- 73% -- of IT pros using public cloud services listed cost savings as the primary reason, according to a 2012 TechTarget survey of 1,500 IT professionals. But cloud services may end up costing far more than on-premises IT over the long term -- and that's exactly why vendors create cloud versions of their wares. Software as a Service (SaaS) gives vendors a reliable revenue stream that they don't get with their biennial software product releases. "If you believe...

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