Cloud Computing, a Competitive Advantage{2}


Cloud computing can give any business the capability to access applications and data from anywhere in the world on demand. Another attractive benefit is the fact that cloud computing is a service and the user (business) is not responsible for costs associated from buying, upgrading, or maintaining any parts. Thus a small business can pay for the service on demand, this is significant because small businesses who have limited resources can now use cloud computing to create a competitive advantage over its competitors.

This journal article explains why a small business might use  cloud computing. The article uses the example of a small software company who makes their money by letting customers download their software. This small business can either use an off-site facility to host the application in which the server system would slow down significantly as more people log on or it can use cloud computing to basically outsource their hosting server. This would mean they would be cutting costs  by not having to invest and maintain their servers and only need to pay for the capacity that is needed.

This application of cloud computing and how it can be utilized to make a business run efficiently is what relates this to our 305 class. In our class we discuss of how we use technology in business in order to be efficient and to enhance our competitive advantage.

Citation

Truong, D. (2010). How cloud computing enhances competitive advantages: A research model for small businesses. The Business Review, Cambridge, 15(1), 59-65. http://search.proquest.com/docview/347569664?accountid=10357