Cloud Computing

Definition

Cloud computing is a model for delivering on-demand access to a shared pool of configurable computing resources, such as networks, servers, storage, applications, and services, over the internet. It enables organizations and individuals to access and utilize these resources without the need for local infrastructure or direct management.

5 Must Know Facts For Your Next Test

1. Cloud computing enables organizations to scale their computing resources up or down based on demand, reducing the need for upfront capital investments and allowing for more efficient resource utilization.
2. The use of cloud computing can enhance business agility, as it allows for faster deployment of new applications and services, and easier collaboration among team members located in different geographical locations.
3. Cloud computing can improve data security and disaster recovery by providing redundancy and backup of data stored in the cloud, as well as the ability to access data and applications from any location with an internet connection.
4. The adoption of cloud computing has led to the emergence of new business models, such as subscription-based services and pay-as-you-go pricing, which can provide more flexibility and cost-effectiveness for organizations.
5. The growth of cloud computing has enabled the development of new technologies and innovations, such as the Internet of Things (IoT), big data analytics, and artificial intelligence, by providing the necessary computing power and storage resources.

Review Questions

• Explain how cloud computing can impact an organization's external environment as described in the topic 4.1 The Organization's External Environment.
  • Cloud computing can significantly influence an organization's external environment, as described in the topic 4.1 The Organization's External Environment. By providing on-demand access to computing resources, cloud computing can alter the competitive landscape, enabling smaller organizations to compete more effectively with larger enterprises by reducing the need for significant upfront investments in IT infrastructure. Additionally, the availability of cloud-based services can impact industry dynamics, as organizations can more easily adopt new technologies and services, potentially disrupting traditional business models. Furthermore, the global reach of cloud computing can expand an organization's access to new markets and talent pools, changing the overall competitive environment.
• Discuss how cloud computing trends can impact entrepreneurship and small-business ownership, as covered in the topic 7.8 Trends in Entrepreneurship and Small-Business Ownership.
  • The topic 7.8 Trends in Entrepreneurship and Small-Business Ownership highlights how cloud computing can significantly impact entrepreneurship and small-business ownership. Cloud computing lowers the barriers to entry for new businesses by providing affordable and scalable access to computing resources, allowing entrepreneurs to focus on their core business activities without the need for significant upfront investments in IT infrastructure. This can foster innovation and enable small businesses to compete more effectively with larger organizations. Additionally, cloud-based services, such as SaaS and PaaS, can provide entrepreneurs with the tools and platforms they need to develop and deploy new products and services quickly, further supporting the growth and success of small businesses.
• Analyze how cloud computing, as part of an organization's external macro environment, can be evaluated using the PESTEL framework discussed in the topic 8.3 A Firm's External Macro Environment: PESTEL.
  • The topic 8.3 A Firm's External Macro Environment: PESTEL highlights how organizations can use the PESTEL framework to analyze their external macro environment, which includes the political, economic, social, technological, environmental, and legal factors that can impact their operations. In the context of cloud computing, this framework can be applied to evaluate the various ways in which cloud computing can influence an organization's external environment. For example, the political and legal factors may include government regulations and policies surrounding data privacy and security, which can impact the adoption and use of cloud computing services. The economic factors may involve the cost-effectiveness and scalability of cloud computing, which can affect an organization's financial decisions and competitiveness. The technological factors may encompass the rapid advancements in cloud computing technologies, which can drive innovation and disrupt traditional business models. By analyzing cloud computing through the PESTEL lens, organizations can better understand and respond to the opportunities and challenges presented by this transformative technology.

Related terms

Software as a Service (SaaS): A cloud computing model where software applications are hosted and managed by a provider and made available to users over the internet, eliminating the need for local software installation and maintenance.

Platform as a Service (PaaS): A cloud computing model that provides a platform, including operating systems, programming languages, databases, and web servers, allowing developers to build, test, and deploy applications without the need to manage the underlying infrastructure.

Infrastructure as a Service (IaaS): A cloud computing model that provides on-demand access to fundamental computing resources, such as processing power, storage, and networking, allowing organizations to outsource their IT infrastructure and focus on their core business activities.