Economies of Cloud Computing

clouds (from wikipedia)

In "Cloud computing: Will the financial geeks give it a boost?" ZDNet's Larry Dignan uses a recent Forrester report to help you explain the economies of SaaS / Cloud computing - to your CFO.

The economies of scale, the Open Source-ness, dedicated specialists, boilerplate hardware etc. enable service providers come out with SaaS offerings at competitive prices.

From the buyers perspective, low prices aside, it's also cash flow and up-front loading of risk and money of traditional, on-premise projects, will now drive more buyers to SaaS offerings. This is especially true in an economic downturn.

It seems, Open Source and SaaS will be the winners of this crisis...