The first thing to consider is that Cloud Computing is a Lease Model, so in other words, it is Pay-As-You-Go. You likely won’t have the degree of up front costs that you would normally expect, such as server procurement and installation, software licensing and additional IT resources. These costs will be handled monthly, leading to a more predictable cost structure once you are up and running; especially when your industry and business model has to account for large swings in demand.
Up-front licensing essentially becomes on-demand. So in order to capitalize on any savings, you must manage your instance usage. By that, I mean, you need to implement policies for scaling up and down instances based on demand as well as scheduling for the shutdown of services when not needed; such as development and test servers on the weekend for example.
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