The cost benefits that cloud computing offers to its users is something that has been discussed ad nauseam.

In a study conducted by researchers from UC Berkeley and INRIA, France showed that cloud computing can offer savings of anywhere between 40-95% depending on resource usage.

This potential for cloud based systems to bring about huge savings in their annual expenditure is what has been driving the massive migration from in-house server based technology sytems to cloud based alternatives. According to Mary Ellen Power, the VP of marketing at Silanis, a major client for cloud vendors like Amazon AWS, the cloud based services could be seeing as much as 50% growth rate annually in the near future.

However, what impact is this causing to the cloud vendor companies? While the mass migration to cloud helps customers avoid upfront technology investments and thus save money, vendor companies are now in a bind …