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One big digital change we’ve seen lately is companies switching over to on demand or “as a service” solutions. This means businesses can access cloud computing resources in a flexible, scalable way.
On demand computing refers to the provision of computer system capabilities, such as database storage, cloud backup, and cloud server hosting, as needed and on a pay-as-you-go basis. So, rather than investing heavily in IT infrastructure, companies can purchase the services they require and only pay for what they consume.
The on demand business model has clear financial benefits for companies and will help them cut costs by using minimal resources. This also allows you to scale up and down to meet workload needs.
Let’s explore what is on demand computing and the types of businesses that are using on demand cloud-based services today.
What does On Demand Computing mean?
On demand computing (or utility computing) means accessing computing resources as you need them. Businesses pay only for what they use without any long-term commitments, so they don’t need to invest heavily in tech infrastructure. This business computing model empowers companies to be more adaptive and responsive to changing conditions.
To better answer the question of ‘What is on demand cloud computing?’, let’s explore exactly how on demand computing works:
Cloud Platforms Provide the Foundation
On demand computing is made possible through cloud platforms run by managed service providers such as Beeks. These companies maintain large networks of secure data centres that businesses can leverage instead of building their own.
This shared infrastructure allows for greater business agility; companies can scale their usage up or down based on the enterprise’s demand.
Tracking Usage
A cloud service provider will track and monitor a client’s resource usage closely through meters. This allows a cloud provider to charge a user’s enterprise accurately based only on what they consume i.e. server time, number of users, or storage capacity.
For example, cloud usage is typically measured in gigabytes stored per month. The amount of data uploaded, downloaded, and retained in the cloud storage system is carefully metered. So, a company will only pay for what they use — whether that is 50 gigabytes or 500 terabytes of cloud data storage space.
Self-Service Access
On demand computing enables self-service access to computing resources without needing internal IT teams to handle all the setup and management. Cloud providers offer user-friendly web dashboards and automation tools for businesses to manage their own usage.
For example, in on demand self-service cloud computing, if your business rapidly gains new customers and suddenly needs additional computing resources, you can log in and scale up within minutes. On the other hand, if your enterprise needs minimal computing resources, you can scale down as required.
Integrating with Other Apps & Systems
A major benefit of utility computing is that it can integrate easily with a company’s existing software tools and platforms without complex coding. The cloud providers enable these connections through simple interfaces called APIs (application programming interfaces).
For example, if a company website gets sudden traffic spikes, extra computing power from the cloud automatically helps meet peak requirements.
Types of Cloud Computing
Dedicated servers and virtual private servers (VPS) are specialised implementations of cloud computing on demand. More specifically, they provide tailored infrastructure solutions that fall under the Infrastructure as a Service (IaaS) enterprise-level delivery model.
IaaS refers to on demand users’ access to fundamental infrastructure and computing resources without needing to build physical data centres.
On the other hand, Platform as a Service (PaaS) offers a ready-made platform to develop, run and manage applications without building the underlying infrastructure. This allows for faster software development.
Software as a Service (SaaS) delivers complete software applications on demand through the cloud. Software as a service is typically used on a subscription basis.
Dedicated Cloud Servers
Dedicated cloud servers provide customers with their own physical server hosted in a data centre. The dedicated hardware is not shared with other customers and is allocated solely to one client for unrestricted use. This guarantees performance, security and control.
Companies essentially lease the dedicated server infrastructure on demand from providers rather than owning the hardware on-premises.
A dedicated server is best suited for cloud-based applications needing high computing power and regulated industries, such as the financial industry, where data security risks and compliance issues are an ongoing challenge. Dedicated hardware also permits deeper levels of server customisation.
Virtual Private Cloud Servers
A virtual private server (VPS) provides clients with a private slice of a physical server in the cloud. Each VPS customer gets a dedicated allocation of CPU, memory, storage and its own virtual operating system. Under the hood, the physical server itself hosts multiple VPS customers in separate partitions.
A VPS offers cost savings since the underlying infrastructure is shared between VPS slices.
Applications of On Demand Computing
On demand cloud computing has opened the doors for companies across industries to easily access enterprise-grade IT capabilities. Here are a few examples of business types that use on demand computing resources:
- Startups and Small Businesses: New companies have variable workloads and tight budgets. Cloud computing eliminates the need for upfront capital, lowers operational costs and allows them to focus on building products rather than owning technology.
- Seasonal Demand Industries: Media, retail, and logistics companies see significant demand fluctuations. They can scale their online services and capabilities to smoothly meet cyclical spikes and lulls due to holiday seasons or events.
- Internet-Based Business Model: Whether B2B or B2C-centric, the on demand model allows digital businesses to adapt to viral market shifts.
- Highly-Regulated Sectors: On demand computing helps regulated industries like banking, insurance, and healthcare focus on core competencies while maintaining sufficient resources and ensuring strict security and compliance.
Why Use Cloud Computing On Demand Technology for Finance or Capital Markets?
The finance industry depends heavily on technology — from software that processes complex transactions globally to apps that customers can count on for banking and investing 24/7.
Let’s look at how on demand computing services help finance and capital markets achieve their innovation goals:
- Speedy Launch of New Apps and Products: The cloud allows faster launch of digital tools like mobile payment services, online insurance portals, automated advisors, and trading platforms.
- Flexibility to Adapt to Changing Demands: During peak periods like financial reporting time or high market volatility, technology usage can spike heavily. Cloud computing allocates more power to smoothly handle demand rises from worried customers, for example.
- Security for Sensitive Financial Data: Banks and capital markets firms store vast amounts of highly sensitive customer data like account numbers, transaction details, and portfolio information. Cloud computing services include strong security measures to safeguard this confidential information.
- Staying Compliant with Regulations: Financial companies have to adhere to strict corporate governance. Cloud experts continuously validate that the latest compliance needs are achieved using the appropriate technology controls.
- Reliable Systems Financial Customers Depend On: Outages can prove disastrous for time-sensitive functions like trading. However, cloud services build highly dependable operating systems that promise to keep financial software applications running 24/7.
Choose Beeks’ On Demand Compute Solutions
With over a decade of specialised expertise in financial cloud technology, Beeks is one of the leading global cloud computing providers, offering dedicated servers and virtual private servers (VPS) to optimise capital markets systems for the future.
Our cloud platform offloads provisioning, analytics and optimisation so you can redirect your focus to customer-centric innovation and your core business while cutting operating costs.
Beeks can handle your cloud to unlock new levels of speed, insight and growth. Let our team of on demand computing experts explain more about what is on demand computing. Contact us today at sales@beeksgroup.com.
