There is a lot less hype around cloud computing than just five years ago. And while everything has not moved to the cloud as was frequently predicted, there are a lot of good applications for cloud computing. However, some business leaders are still not sure when it makes sense for their organization.
For smaller organizations, cloud applications are typically a good option. Whenever an organization is considering upgrading or adding a new application, such as a CRM or shared calendar, cloud options are typically the best option. They require less upfront investment and little or no ongoing investment for upgrades or updates other than the monthly fee. Plus, you need less IT support in house.
For larger organizations, the calculation is a little more complicated. The monthly costs of cloud solutions can get expensive quickly. And if you keep things in house, there is the cost of purchasing the software and servers, then the IT support to set it up and maintain it. Plus, there are the regular costs of upgrades to software and hardware. It is a lot like the difference between renting office space or buying a building.