The cloud computing business model has recently gained popularity in the rapidly evolving IT industry. The technology is gradually replacing the traditional service and software licensing models due to recent technological advancements and changing customer demand.

Cloud computing creates a scalable shared computing solution through the Internet and use centrally located remote servers as well as web-based technology to manage data and multiple applications. It allows many individuals and businesses to use information, without any physical installation. The users can access these files from any device connected to the web. The model offers an effective computing via centralized memory, bandwidth, processing, and storage.

Cloud Computing - A Game Changer

Cloud technology is one of the robust computing solutions available today. By leveraging this technology, many businesses have improved their performance. This business model is typically viewed as a highly attractive form of economical IT outsourcing.

With the rising demand for energy sector, the IT infrastructure in India is highly strained. To sustain this growth trajectory, the country needs to meet this demand in a better way. This requires quick and smart analysis of generated data from various sources, such as wind, biomass, hydro, and solar technologies. In this direction, many companies engaged in power generation business are forming strategic partnerships with reliable cloud hosting service providers.

In doing so, the major challenges encountered by the businesses dealing in energy sector are:

 - Minimizing their operational and maintenance costs in order to maximize their productivity as well as asset utilization
 - Creating flexibility and agility to respond to the changing customer demands and industry standards through vertical integration

As part of this engagement, cloud business model can help companies in following ways:

Collaboration and Administration: Cloud based collaboration enables firms in the energy sector to install and manage their mission critical documents on private clouds. This help companies in facilitating and administering easy interactions between the potential and current customers, which helps customer service, sales, and marketing team to collaborate with each other. Moreover, document management and sharing in cloud helps firms to direct workflow for change management.

Data Analytics: Cloud analytics provide analytical insights to the businesses. It facilitates users to benefit from the real-time analytics on their request. This will deliver an integrated view of the company's operations to the businesses in the power generation sector and equip them with pro-active measures to streamline their operations and achieve higher efficiency through optimum utilization of resources.

Cost Minimization: A distributed approach to an energy-efficient and dynamic cloud-based business model can lead to significant savings in the energy consumption, while reducing the percentage of equipment breakdowns. This helps businesses in reducing their operational costs. Moreover, it is a utility or pay-as-you-go model that enables clients to only pay for the use of the services. 

To conclude, cloud is one of the simplest models that offer umpteen advantages to its clients, including cost elasticity, market flexibility, and business scalability. By offering scalable computing resources, energy companies can realize powerful benefits of automating their finances, strengthening customer relationship, as well as  supply chain management; while gaining fast business insights based on real time data.