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cloud, they do not have to invest in their own hardware. They can just rent the  needed storage space. Because the providers supply the IT environment for many  companies they can offer the same storage space for a cheaper price than if  companies would buy the IT infrastructure on their own. This lower costs cost reduction  can be achieved through economies of scale because the IT resources are brought up  like community resources and delivered “as a service” that can be used by  multiple users – each one paying a part of the price (Armbrust et al, 2009).