Effects of Cloud Computing in the Global Business Environment

3879 Words Apr 1st, 2011 16 Pages
Effects of Cloud Computing in the Global Business Environment

INTRODUCTION

Cloud computing is a technology model that allows users to access and obtain delivery of information and resources over the Internet. This model generates all of the features required to support the complete cycle of constructing and delivering web-based applications. Nowadays, more and more companies are investing in the development of this powerful and valuable technology which has revolutionized the way of doing business, selling and marketing products. “It is a simple idea with great impact” that has evolution thanks to the faster and faster Internet connections, as we will discuss later on this paper.
Information technology has developed
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Thus, there has been increasing attention to alternatives that provide the pay-as-you-go options, unlimited scalability, quick deployment, and the minimal maintenance requirements. Cloud computing is a computing innovation that promises to meet the demands of all these requirements.
The costs and/or benefits of implementing cloud services vary depending upon the size of the enterprise and its existing IT resources/overheads including legacy Data Center infrastructure, computer hardware, legacy software, maturity of internal processes, IT staffing and technical skill base.
In the past, larger corporations had an advantage over smaller corporations because they had access to capital, and the ability to leverage their existing human, software, and hardware resources to support new marketing and strategic initiatives. However, since the introduction of cloud computing, the barriers to entry for a startup company have been reduced dramatically and cloud computing may have removed the strategic advantage away from the large established corporations. Now, all is needed is a small talented team of individuals to address a perceived market need. This alleviates the immediate need for venture capital funds to provide the necessary IT infrastructure. For medium-sized clouds, IBM estimates roughly 62 percent savings in one year; for larger clouds, it will be closer to 50 percent [4]. Additionally, another benefit of cloud computing is that the

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