Benefits consolidating data centers

Since then, a slew of these software companies—including Box (box), Salesforce, Net Suite, Tableau (data), Workday, and SAP (sap)—have all announced plans to use a public cloud (like AWS) as a deployment option for their own software.

A public cloud—referred to within the industry as Infrastructure-as-a-Service (Iaa S)—consists of massive quantities of servers, storage, and networking owned-and-operated by one company, and then rented out to others.

The move to virtualized equipment does have significant upfront costs requirements, but it will pay dividends in monthly cost savings.

In addition to employee mobility, businesses see much lower operational costs from energy use and old hardware after migrating.

Box and Workday, for example, are turning to AWS and IBM (ibm) Soft Layer to run specific types of software.

Salesforce has signed on to AWS for its Internet of Things Cloud Suite and other new products.

This means the company can achieve savings in labor, the server, storage and network infrastructure — while also employing happier, more productive employees. Security This probably a surprise as it is commonly thought that on-premise data is safer under internal watch, but data centers actually tend to be more secure.