Effects of Cloud Computing in the Global Business Environment

Topics: Cloud computing, Operating expense, Mobile software Pages: 10 (3864 words) Published: April 13, 2011
Effects of Cloud Computing in the Global Business Environment


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 tremendously over the past decades especially after the launching of the Internet. In the 1960s, there was the mainframe computing; in the 1970s the mini-computing; and in the 1980s, the client/server computing, and the three decades operated with the traditional IT delivery. In the 1990s, desktop Internet computing operated through consumer driven clouds. Starting in the year 2000 through the present, cloud and mobile computing were developed, and from the present time to the future, the cloud computing represents endless opportunities or it could be simply described as “everything as a service” [1]. Going back to the 1990s, Bill Gates had the vision about the possibility of Internet developments that would make information more personal or that would put information at people’s fingertips. This remained as an idea that was buried for more than ten years and “now that more personal PC is here in the form of smartphones and mini-laptops, and broadband wireless networks make it possible for people to be connected almost anytime and anywhere” is when this is possible [2]. The basics of the cloud computing is that information is stored over web-based (Internet) servers as opposed to individual local servers; thereby, the only requirements to access data anytime and anywhere are a “personal” device, as mentioned above, and an Internet connection. Also, the term “cloud” arises from the diagrams of flow utilized to represent networks where the Internet is always drawn precisely as a cloud to differentiate it from other processes and other networks. The benefits of this new revolution technology are of great impact to businesses, the environment, and even individuals who can ultimately translate this into savings of time and money; therefore, we consider it outweighs any alleged weaknesses that may come along with the cloud. On the following sections of this paper, our team is making the best effort to describe the impact of this technology in a concise and clear way. CLOUD COMPUTING REDUCTION IN COST, INVESTMENT AND INCREASE OF EFFICIENCY IN IT PROJECTS FOR LARGE COMPANIES. The challenges and responsibility that all organizations face today are numerous. They have to find a way to store more data, provide more services, control costs, and now monitor and manage energy costs and carbon impacts. Unfortunately, the maintenance of data centers is consuming significant portions of their budgets. Typical costs to be taken into account are the specialists required to run the data center and look after the environment, network operations centers, storage engineers, communications engineers, system administrators, rent/lease, electricity, software licensing, network equipment, and much more. Enterprise data centers consume approximately US$300 million or more of a company's yearly IT budget, with depreciation expenses making up more than half. Since energy is largely becoming a constrained resource, the industry now describes data centers in terms of their power capacity. Statistics also show that on average data centers consume more than 20 percent of the energy bill of Global 2,000 companies [3]. With technology always evolving, IT managers search for alternative ways to increase capacity and...
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