The latter also provides the scope for efficiency savings through the utility computing model, in which the customer only pays for what they use; but if the service is heavily used the costs can increase and begin to offset the initial savings.

This is unlikely to be the case for many organisations, but there are times when it is cheaper to own the asset.

Virtualisation can provide clear advantages if an organisation needs a high degree of control. Keeping operations within its own data centre can make it easier to manage and make changes to its IT environment, providing more flexibility.

This can be important if it runs a number of specialised applications that have to be tailored to the platform, and if it wants to respond to changes in the use of technology.

It could also be a significant factor for organisations that are increasing their use of remote technology or .