Cloud computing

Definition

Cloud computing is the delivery of computing services, such as storage, processing power, and applications, over the internet (the cloud), allowing users to access and utilize these resources on-demand without needing local infrastructure. This technology enables businesses to operate more flexibly and efficiently by providing scalable resources and reducing the need for significant capital investment in hardware.

5 Must Know Facts For Your Next Test

1. Cloud computing enhances collaboration among global teams by enabling easy access to shared resources and tools from any location with internet connectivity.
2. It offers cost efficiency by reducing the need for physical hardware and allowing businesses to pay only for the resources they actually use.
3. Security in cloud computing is a critical concern; providers often implement advanced security measures like encryption and multi-factor authentication to protect user data.
4. Many companies adopt hybrid cloud strategies that combine private and public cloud services for improved flexibility and security.
5. The scalability of cloud computing allows businesses to quickly adjust their resource usage based on demand, making it ideal for managing fluctuating workloads.

Review Questions

• How does cloud computing facilitate global business operations compared to traditional IT infrastructure?
  • Cloud computing allows businesses to operate globally by providing access to resources and applications via the internet, eliminating geographical limitations. Unlike traditional IT infrastructure, which requires substantial investment in local servers and equipment, cloud services enable companies to quickly deploy solutions across different regions. This flexibility helps organizations collaborate seamlessly, share data in real-time, and adapt swiftly to changing market demands.
• Discuss the role of cloud computing in driving innovation within international markets.
  • Cloud computing plays a significant role in driving innovation by providing businesses with access to advanced technologies such as artificial intelligence, big data analytics, and Internet of Things (IoT) capabilities. These tools can be easily integrated into existing processes without heavy upfront costs. As companies leverage these innovations, they can develop new products and services faster, reach broader audiences in international markets, and enhance customer experiences—all of which foster competitive advantages.
• Evaluate the potential risks associated with cloud computing for multinational corporations and propose strategies to mitigate these risks.
  • Multinational corporations face several risks with cloud computing, including data breaches, compliance issues related to varying international regulations, and service outages that can disrupt operations across different regions. To mitigate these risks, companies should implement robust security measures such as end-to-end encryption and regular security audits. Additionally, they should develop clear policies that ensure compliance with local regulations while investing in reliable multi-cloud solutions that can provide redundancy and minimize downtime in case of service disruptions.

Related terms

SaaS: Software as a Service (SaaS) is a cloud computing model where software applications are hosted in the cloud and made available to users over the internet, typically through a subscription model.

IaaS: Infrastructure as a Service (IaaS) provides virtualized computing resources over the internet, allowing businesses to rent servers, storage, and networking on a pay-as-you-go basis.

PaaS: Platform as a Service (PaaS) is a cloud computing service that provides a platform allowing customers to develop, run, and manage applications without dealing with the complexity of building and maintaining the infrastructure.