From a non-technical standpoint, there are also economics involved. If you are an IT manager under pressure to cut costs, wouldn't you be tempted to use a model where you don't need to buy hardware, don't need to manage the hardware, don't need to program the network application and don't need to worry about backups, running out of disk space, network overload and crashes in the middle of the night? What if you simply bought a service that did all this for you and bought more "services" when you needed more? What if your engineering department needed a big compute platform, but only for a specific period of time? You could buy all the servers and then have some of the equipment idle when you completed the task, or you could "rent" the resources required. As an IT person, you probably spend significant time managing the phone systems in your building. You can use a hosted/cloud PBX for instance -- you just need phones on employees' desks, or even better yet, use softphones so you don't need any hardware on employees' desks -- and you give employees their phone number and that's that.
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