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Running Head: STRATEGIC IMPORTANCE OF CLOUD COMPUTING TO BUSINESSES 1

Strategic Importance of Cloud Computing to Businesses

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STRATEGIC IMPORTANCE OF CLOUD COMPUTING TO BUSINESSES

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In this digital era most companies want to automate their businesses so that they can double their profits. However, it has been a challenge to establish the infrastructure necessary for the automation. For instance, to automate the business operations, a company requires a server, and network. For small and medium sized companies investing this amount of money is not possible and the technology requires staff with special skills which further raise the cost of the new technologies. To overcome these challenges organizations are now adopting cloud computing, a technology that allows businesses to install, run their applications and use configured resources from different locations. Both articles concluded that migrating into the cloud environment has a huge impact to the business environment as discussed below. Devasana in his article noted that businesses make huge cost savings after migrating into the cloud environment (Devasena, 2014). The savings realized can be used to expand markets or upgrade its existing infrastructure. Migrating into the cloud environment does not require an organization to buy servers or hire staff. Also, the business realizes costs savings from the consolidation of resources such as the memory, storage and computing power (Devasena, 2014). Apart from the computing resources, a business makes huge cost savings from things like energy and land which are critical in setting up of the traditional information infrastructure. Besides physical resources, cloud computing results into labor optimization. Previously, businesses spent huge chunks of money to hire information technology staff to install and monitor the information systems (Devasena, 2014). Punna and Suresh observed that cloud environment helps businesses to make changes quickly and efficiently which is a key strategic pillar towards growth of an organization (Punna & Suresh, 2017). Business agility is improved with the help of virtualization. For instance, virtualized desktops allow staff to work from different locations and on multiple devices.

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Another strategic importance of cloud computing is its scalability (Punna & Suresh, 2017). In cloud computing, organizations can easily add capacity on demand without assessing the infrastructure requirements. The feature gets rid of load fluctuations because the capacity can be added instantly. Cloud computing allows the businesses to contract or expand their operations by easily using the shared resources (Punna & Suresh, 2017). It is also possible to find prepackaged capabilities in the cloud environment which specifically address expansion. The topics presented by the two articles are related since they focus on importance of cloud computing towards growth of the business. Both articles noted that collaboration was the most important feature of cloud computing. Both authors observed that businesses all over the world are doing their best to realize the benefits of collaboration in the cloud environment. Cloud environment supports a wide range of applications that provide better ways for the business to interact with the customers. A good example is Kasumigaseki, a cloud infrastructure that allows the Japanese government to consolidate all the government ICT systems. Lastly cloud computing enables employees to interact with each other more efficiently which reduces the time taken to accomplish tasks. In conclusion, it is evident that cloud computing is slowly sneaking into strategic goals of the organizations. All the information provided in these articles ranging from cost savings, agility to collaboration is important to an organization preparing to migrate into the cloud environment. The information guides an organization while making it decision to migrate into the cloud environment. All the benefits discussed in this discussion from cost savings, agility and collaboration are strategic in nature. Organizations grow if these benefits are not realized.

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References Devasena, C. L. (2014). Impact study of cloud computing on business development. Operations Research and Applications: An International Journal (ORAJ), 1(1), 1-7. Punna, P., & Suresh, R. (2017). Strategic Importance of Cloud Computing in Business Organizations....