Cloud computing

Definition

Cloud computing is the delivery of computing services—such as storage, processing power, and software—over the internet, allowing users to access and manage these resources remotely. This technology has revolutionized how businesses and individuals operate by offering flexibility, scalability, and cost-efficiency without the need for extensive on-premises infrastructure. The rise of cloud computing has greatly influenced strategic alliances by enabling collaboration between organizations through shared platforms and resources.

5 Must Know Facts For Your Next Test

1. Cloud computing enables organizations to scale their IT resources quickly based on demand, significantly improving operational efficiency.
2. By utilizing cloud services, companies can reduce costs associated with purchasing and maintaining physical hardware.
3. Collaboration is enhanced through cloud platforms, allowing multiple parties to work on shared projects in real time from different locations.
4. Security in cloud computing has become increasingly sophisticated, with providers implementing measures to protect data and comply with regulations.
5. The growth of cloud computing has led to the emergence of new business models and partnerships, as organizations seek innovative ways to leverage technology for competitive advantage.

Review Questions

• How has cloud computing changed the way organizations form strategic alliances?
  • Cloud computing has significantly transformed how organizations form strategic alliances by providing a shared digital infrastructure that facilitates collaboration. With the ability to access and share data in real-time from anywhere in the world, companies can partner more easily and leverage each other's strengths. This shift allows for more dynamic and flexible alliances that can adapt quickly to changing market conditions or project needs.
• Discuss the implications of cloud computing on cost efficiency for businesses engaged in strategic partnerships.
  • Cloud computing has major implications for cost efficiency within strategic partnerships by reducing the need for extensive physical infrastructure investments. Organizations can utilize pay-as-you-go models that allow them to only pay for what they use, making it financially viable for smaller companies to engage in partnerships with larger firms. This fosters innovation and collaboration without financial barriers while optimizing resource usage across the partnership.
• Evaluate the long-term effects of cloud computing on business ecosystems and strategic alliances in a rapidly evolving technological landscape.
  • The long-term effects of cloud computing on business ecosystems and strategic alliances are profound, as it drives continuous innovation and adaptability in response to technological advancements. Organizations increasingly rely on cloud services to access emerging technologies like artificial intelligence and big data analytics, which can enhance their competitive edge. As businesses become more interconnected through cloud platforms, strategic alliances will likely evolve into more integrated collaborations focused on co-creation and shared value generation, reshaping entire industries.

Related terms

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

Infrastructure as a Service (IaaS): A cloud computing service model that provides virtualized computing resources over the internet, enabling users to manage hardware and infrastructure without owning physical servers.

Platform as a Service (PaaS): A cloud computing model that provides a platform allowing developers to build, deploy, and manage applications without worrying about the underlying infrastructure.