Companies the offer cloud services see increased profits

Cloud computing's virtualization capabilities offer a cost-effective way for companies to outsource their existing information technology (IT) infrastructure. However, the cloud's appeal to businesses may now include the possibility for more revenue to corporations that invest in the new technology.

According to SYS-CON Media, the cloud has grabbed a much larger share of the market for IT solutions, and with this popularity comes larger profit margins for companies that possess the technology. A critical reason as to why this shift occurred may be the cloud's acceptance as a viable option for data centers that are looking to update and expand their information storage services. This may be best exemplified by cloud services provider Brocade Communications, which recently reported a 2 percent growth over the past year, according to the news source.

Experts say that third-party cloud services may be adopted by data centers because they offer companies the chance to manage data that would otherwise take up value IT space. According to TMC Net, cloud services may be a cheaper solution for companies that need to store semi-active data (SAD). Because of the data's nature, it is best stored on a virtualized database.