Without a doubt, the worldwide economic downturn forced the business organizations to reevaluate their business strategies and models from start till end. In this scenario, the business organizations spent a lot of time and resources in assessing their IT infrastructures and they considered cloud computing as a conceivable substitute to the traditional IT infrastructures. One of the most important advantages of cloud computing is that it allows the business organizations to convert fixed price mode (such as cost of ownership, servers, employee salaries , servers and additional expenses) to flexible price mode. On the other hand, with traditional IT models the organizations had to pay heavy charges all the time, whether they make extensive use of information technology or not. In fact, they had to pay higher prices for the time when IT was not used such as holidays. So there was always a fixed cost associated with traditional IT models. On the other hand, cloud computing is both scalable and flexible. In addition, it allows business organizations to buy only what they need, and pay for only those services which are used (Cooke, 2010).
At the present, the majority of business organizations are adopting cloud computing technology for the effective management of their business activities. In fact, the implementations of cloud computing can be seen in all the fields such as business, finance, education, defense and so on. I have chosen a case study where an Oil and Gas industry shifted its IT systems from an internal data center to Amazon EC2. The basic objective for the selection of cloud computing technology was to reduce IT costs up to 37%in the next five years, and eliminating more than 21% support calls regarding their IT system. The company is basically a UK based firm that is currently operating in the Middle East.