It seems like a pretty straight forward question and more often than not most people assume the answer is centric to the economics of cloud. From the very beginning cloud has had a reputation for being a cheaper alternative to traditional on-premises solutions. It’s not an absolute truth in every implementation but cloud can often deliver an economic upside in comparison to on-premises solutions. Cloud helps companies avoid the risky capital investment often necessary with IT projects.
I often blog as the Chief Research Officer for Dell Software - Read this entire post on Dell.com