Cloud computing

Definition

Cloud computing is the delivery of various computing services over the internet, enabling users to access and store data and applications on remote servers instead of local devices. This technology allows businesses and individuals to utilize resources such as storage, processing power, and software applications without the need for extensive on-premises infrastructure. As a key enabler of modern digital business models, cloud computing fosters scalability, flexibility, and cost efficiency, making it vital for e-commerce platforms and online marketplaces.

5 Must Know Facts For Your Next Test

1. Cloud computing enables businesses to scale their operations quickly by adding or reducing resources as needed without significant upfront costs.
2. The use of cloud computing enhances collaboration, allowing teams to work together in real-time from different locations through shared applications and data.
3. Data stored in the cloud can be accessed from any device with an internet connection, promoting flexibility and remote work capabilities.
4. Cloud services are typically billed on a pay-as-you-go basis, which helps organizations manage their budgets more effectively by only paying for what they use.
5. Cloud computing supports various e-commerce functionalities, such as payment processing, inventory management, and customer relationship management systems.

Review Questions

• How does cloud computing enhance the efficiency of digital business models?
  • Cloud computing enhances the efficiency of digital business models by providing scalable resources that can adjust based on demand. This flexibility allows businesses to innovate rapidly without heavy investments in physical infrastructure. Additionally, it facilitates easy access to software tools and data, empowering organizations to streamline operations and respond quickly to market changes.
• In what ways do e-commerce platforms benefit from utilizing cloud computing services?
  • E-commerce platforms benefit from cloud computing services through improved scalability, enabling them to handle varying traffic loads during peak shopping seasons. The cost-effective nature of cloud services allows these platforms to invest in advanced technologies without high capital expenditures. Furthermore, enhanced security measures provided by cloud service providers help protect sensitive customer information during transactions.
• Evaluate how the adoption of cloud computing can impact small and medium-sized enterprises (SMEs) in terms of competitive advantage.
  • The adoption of cloud computing can significantly impact small and medium-sized enterprises (SMEs) by leveling the playing field against larger competitors. SMEs can leverage cloud services to access advanced technologies that were previously unaffordable, thus enhancing their operational capabilities. This leads to improved customer service, faster time-to-market for new products or services, and greater agility in responding to market trends. Consequently, SMEs can achieve a competitive advantage by being more innovative and responsive while maintaining lower operational costs.

Related terms

SaaS: Software as a Service (SaaS) is a cloud computing model that delivers software applications over the internet on a subscription basis, allowing users to access and use them without installation.

IaaS: Infrastructure as a Service (IaaS) is a cloud computing model that provides virtualized computing resources over the internet, allowing users to rent servers and storage as needed.

PaaS: Platform as a Service (PaaS) offers a cloud environment for developers to build, test, and deploy applications without managing underlying infrastructure.