Companies considering a move to cloud computing must understand that it's easier to make mistakes in the transition than it is to experience a seamless move. One of the most important aspects of a switch to cloud computing is ensuring that entire eco-systems run in the cloud for it to function at its highest level. This means that if using an SaaS application, running it on a cloud-based operating system will allow it to perform as well as it can.

When applications run separate from the hardware or operating system that supports them, users can experience latency issues that make their experience in the cloud troublesome. Organizations that experienced problems with the transition often did not know that the true solution to their problem was moving more items into the cloud not taking everything out.

Latency issues also result when companies use different vendors for different operations. In that case, companies need an internet connection that consistently operates at a high speed to prevent performance issues.

A SaaS application costs less than its on-site counterpart, so, while there may be struggles at first, giving it time will show its true benefits - the most attractive of which is the potential financial savings it offers. It's impossible to calculate the total savings for a particular company, but the United States Bureau recently reported it has saved $2.5 million in IT costs since beginning its transition to the cloud last year.

Hardware and software are highly sensitive pieces of technology that frequently struggle when users change how they run. Operating a SaaS application from a server in the cloud is the best way to ensure optimum performance from both. SaaS' popularity has been widely reported throughout the year, but the success of cloud computing in general has spiked. Amazon reports that it will generate more than $600 million in revenue from its cloud server hosting this year. The gain, however lofty it may seem, represents fewer than 3 percent of the company's revenue. Still, its success is such that CEO Jeffrey Bezos believes revenue from cloud computing and Amazon's retail offerings will be equal in the near future, according to the New York Times.

The requirements of a successful move to cloud computing are numerous, and it's understandable that an organization may struggle to adapt quickly. While it's important to remember to move at a comfortable pace into the cloud, organizations that do not consider the move soon will find themselves behind competitors as cloud computing continues the massive expansion that led Global Industry Analysts to estimate that it will be a $222.5 billion per year industry by 2014.ADNFCR-2553-ID-19736703-ADNFCR