The idea of dynamic allocation of cloud resources solves a number of very important problems for enterprise IT. One of the best ways to illustrate this is by looking at a very basic idea: that cloud services can be elastic, or in other words, that they can dynamically provide resources in real time or near real time.
In the advent of the cloud several years ago, we heard a lot about on-demand resources and rapid elasticity. The cloud was amazing partly for the sole reason that companies could simply buy subscriptions for hardware and software resources, instead of physically building and maintaining servers and other hardware on-premises. That opened the door to all sorts of new capabilities and opportunities for business in nearly every industry.
After a massive sea change toward cloud computing, companies were left to look at the new frontier, and how to make things even better. What many of them have found is that while you can provision and de-provision resources through the cloud, it still doesn't solve the problem of resource allocation.