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Answer :
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Final answer:
Cloud computing leads to more resources being available for innovation or development in existing companies by eliminating the need for companies to invest in and maintain their own physical infrastructure. This allows them to redirect capital and resources towards innovation and development initiatives. Start-ups also benefit from cloud computing as it eliminates the need for significant upfront investments in infrastructure, provides scalability and flexibility, and offers cost-effective pricing models. The limiting factor in the cloud model of elastic compute is the underlying physical infrastructure and the capacity of the cloud service provider. Netflix is an example of a successful company that leveraged cloud computing to revolutionize the entertainment industry by introducing streaming services and scaling their infrastructure as their user base grew.
Explanation:
Cloud computing and its impact on innovation, development, and company growth
Cloud computing is a model that allows users to access and utilize computing resources, such as storage, processing power, and software applications, over the internet. This model is based on the principles of virtualization, elasticity, and pay-as-you-go pricing.
(a) More resources for innovation and development in existing companies
Cloud computing leads to more resources being available for innovation or development in an existing company because it eliminates the need for companies to invest in and maintain their own physical infrastructure. Instead, they can rely on cloud service providers to provision and manage the necessary resources. This frees up capital and resources that can be redirected towards innovation and development initiatives. Additionally, the scalability and flexibility of cloud computing allow companies to quickly and easily scale their resources up or down based on their needs, further enabling innovation and development.
(b) Ideal model for start-ups and their growth
Cloud computing is an ideal model for start-ups as it offers several advantages that enable their growth. Firstly, it eliminates the need for significant upfront investments in infrastructure, allowing start-ups to focus their limited resources on core business activities. Secondly, cloud computing provides scalability and flexibility, enabling start-ups to easily adapt to changing demands and scale their resources as their business grows. Lastly, the pay-as-you-go pricing model of cloud computing allows start-ups to only pay for the resources they actually use, making it a cost-effective option for companies with limited budgets.
(c) Limiting factor in the cloud model of elastic compute
The limiting factor in the cloud model of elastic compute and the appearance of infinite resources is the underlying physical infrastructure and the capacity of the cloud service provider. While cloud computing offers the illusion of infinite resources, there are practical limitations to the amount of resources that can be provisioned and utilized. The capacity of the cloud service provider's data centers and servers, as well as the network bandwidth, can impose constraints on the scalability and performance of cloud-based applications.
(d) Example of a successful company: Netflix
One example of a successful company that was an early adopter of cloud computing is Netflix. Netflix revolutionized the way we consume entertainment by introducing a streaming service that allowed users to watch movies and TV shows on-demand over the internet. This shift from traditional DVD rentals to online streaming would not have been possible without the scalability and flexibility of cloud computing. The cloud allowed Netflix to store and deliver vast amounts of video content to millions of users simultaneously, without the need for physical media or local storage. Additionally, the pay-as-you-go pricing model of cloud computing enabled Netflix to scale its infrastructure cost-effectively as its user base grew rapidly.
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