While some large enterprises have moved their information-technology infrastructure to a third-party managed service to save costs, small firms—especially startups—have come to rely on cloud services to cut initial outlays and help them focus on the core services and products.
Infrastructure-as-a-service offerings, such as Amazon's Elastic Computing Cloud (EC2), typically are used by larger enterprises to give research-and development groups flexibility in resources. For startups, eliminating the large capital expenditure of a data center at the outset has allowed many to reduce seed money and keep their burn rates that much lower, says Oliver Friedrichs, CEO of antivirus firm Immunet, which launched its first product last August.
"It's a big win for smaller companies to leverage the cloud because you are really saving a lot—it is really avoiding a large, up-front investment," says Friedrichs. "Five years ago, we would have had to build out a data center and the sheer cost of that would have made it much more difficult to launch our business."
CIO.com