Implementing the cloud in a company can lead to the  reduction of expenses. This is because if companies move their system into the  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 strengths 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 can be  achieved through economies of scale because the IT resources are brought up  like community resources and delivered “as a service”  that will can  be presented used by  multiple users – each one paying a part of the price (Armbrust et al, 2009).

Additionally cloud computing providers often locate  their server-rooms  in a regional location (Armbrust et al, 2009). Here the  renting fees for a location for the data center are often lower than  the following part.