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Cloud computing 'could change business IT payments'

26/02/2009

A technology expert has claimed that cloud computing is likely to change the way businesses pay for their IT and communications networks.

David Keene, vice president large enterprises at SAP, speaking at the Intellect Annual Regent Conference 2009, said: "We're moving away from capital expenditure [and] moving to OPEX [Operating Expense], loosening…PAN [Personal Area Network] solutions and paying on consumption rather than paying by CPU [Central Processing Unit]."

Mr Keene also added that plugging together platforms and plugging into the cloud is likely to become easier as standardisation technologies - service orientated architectures that enable pieces to float together - are developed.

Recently, Bryan Glick, the editor of Computing, predicted that 2009 will be a big year for cloud computing as it becomes increasingly widespread among businesses.

Cloud computing can allow businesses to reduce the number of physical PCs they need to operate their software, which can help them reduce their energy and hardware maintenance costs.

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