Cloud Computing Business Strategy{1}

by Richard H
This journal articles explains the cost-business strategy of outsourcing computer processes to specialized cloud computing companies. Businesses avoid the huge investment costs of computer hardware and software licenses by switching to cloud software and simply paying the subscription price. They also save on not having so many IT employees which are considered overhead in many cases, but they may still need some technology experts to oversee and assist in use of cloud software. The article also exposes some of the disadvantages of the cloud computing business model which mostly consists of lack of customization and privacy.

Cloud computing would seem very attractive to companies (especially smaller start-ups). I think that most companies will implement cloud computing to some degree. This is important for IT professionals and developers who want to find a job that will last. Businesses don’t want to pay the overhead costs of IT and would sometimes outsource the work to these cloud companies, which means that many IT professionals are going to have to find other work. However, cloud companies are going to have to absorb a large amount of the IT workforce to better maintain their systems to cater to the needs of the many companies that subscript to their product.

Rapid improvement in internet speeds are making real-time server-based applications more feasible. Client-side processing will probably be less necessary as we cut down on lag. We may eventually have long distance server interaction with almost no lag.


Lee & Mautz. (March 2012). Using Cloud Computing to Manage Costs. Journal of Corporate Accounting & Finance. 40(3),11-15.

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