Cloud Computing, a Competitive Advantage

by Abel R
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

2 thoughts on “Cloud Computing, a Competitive Advantage

  • May 4, 2012 at 4:39 pm
    Permalink

    This reminds me of a previous post I did about cloud computing for a business. Yes, there are many potential advantages cloud computing brings to small businesses as mentioned. I agree that outsourcing in this case is much more beneficial than having on site servers and having to deal with maintenance, and whats even better is that the service is on demand.

  • May 5, 2012 at 1:14 pm
    Permalink

    I think tone of the biggest advantage of cloud computing was in the first few lines you wrote down. The users don’t have to worry about maintenance, upgrades or any such thing. It is also beneficiary to small businesses who cannot afford big marketing costs. Cloud computing is really use to use, self explanatory, convenient, and cost-effective. The only concern should be the security. If that’s not an issue anymore, then cloud computing is really the future!

Comments are closed.