It is typically based on web technology.

It is typically based on open Internet technologies.

It is cheaper compared to virtualization.

It typically uses XML technologies

On-demand self-service.

Measured service.

Resource pooling.

Rapid elasticity.

Easier access by users from external locations. Faster deployment of applications. Rapid response to changing capacity. Rapid provisioning of resources.

Increase hardware efficiency.
Improve customer reliability

It is cheaper compared to virtualization.
Decreased security.

Shorter contracts and less capital expense reduce expenses of the IT department

Having a 3^rd party to manage service delivery allows the business to lower staffing costs.

It is more cost effective to pay for resources used rather than having to pay for resources capable of meeting peak demand at all times.

Fewer in-house servers reduce power costs in the business’ data center.

Shorter contracts and less capital expense reduce expenses of the IT department.

Security.

Scalability.

Integrity.

Distribution.