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What are the business impacts of cloud computing?

Posted by Fernand Feukeu on

  • Fernand Feukeu
    Fernand Feukeu Mar 14, 2016

    The short answer is that all areas of your organization will be impacted by cloud computing, or they should be, if you have a comprehensive strategy in place. Cloud computing is more than an advance in technology. It represents transformation for your entire organization — people, processes, and systems.

    Finance — Identifying cloud services and analyzing accounting models will help your organization determine how to proceed most efficiently and effectively with activities such as research and development and revenue recognition.

    Internal audit — In order to accommodate the move to cloud computing, cloud service providers will need to modify, upgrade, or replace systems to process, measure, and control use. This will also be critical for billing. Providers should have the right SLAs in place, and a process to monitor those SLAs. Buyers of cloud services must give themselves the same control and monitoring environment in the cloud that they did on internal networks and servers. This is much more challenging, as your organization no longer controls hardware. Methods of application management may change significantly.

    Tax — If you’re buying or selling cloud computing services, it is critical to determine what you’re buying or selling. You may be leasing equipment, making service payments, or paying a license for using software — these distinctions are important and can have an impact on your company’s tax filings. Current tax law does not necessarily reflect the realities of cloud computing. Cloud computing transactions aren’t quite leases and aren’t quite services, but tax law requires them to be classified in one of these two categories. Eventually, tax regulations will be updated and clarified. Now, there isn’t enough consensus.

    Risk and compliance — Cloud computing represents a risk, as it moves data and information into the hands of a third-party provider for storage, processing, or support. Buyers of cloud services will need to set the criteria for the evaluation of cloud computing providers; whereas providers will need to consider which cloud services to provide. Then, your organization will need to be able to explain the next steps that are required in order to mitigate the risks of moving into a cloud computing environment.

    Marketing and sales — New services and products lead to new sales models and customer interfaces. To realize the full potential of cloud computing, your organization needs to understand the value of these products and services, and then price them correctly.

    Vendor lock-in — The viability and capabilities of small and startup cloud vendors could be a concern for long term continuity of service. Enterprises that are using proprietary vendor technology may incur heavy costs if they to move to another cloud platform.



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manohar parakh

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Here are some list of benefits of cloud computing for small business:

1. Accessibility

2. Platform Flexibility

3. Unbeatable Price

4. Free Support 24X7

5. Data Security

6. The Struggle of Staying Up-to-Date

Posted on Sep 15, 2021



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Cloud computing allows businesses to scale up systems with little investment allowing employees to become more efficient because access to data gives the ability to make effective decisions more quickly from anywhere in the world.

Posted on Mar 24, 2016


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Impacts of Cloud Computing Services

The economics of cloud computing lets companies to create new and more profitable products. Every improvement in storage, processing power, or technology enables innovations that weren't possible before and cloud computing makes these opportunities unusually accessible. Smart companies will take notice. For traditional companies that aren't good at making technological and cultural transitions, it will be harder to compete in the modern business environment. Cloud computing services provide agility and control that traditional IT outsource cannot match. There are many cloud computing relationships on the basis of cancel-at-the-end-of-the-month commitment. Reviewed Impacts of Cloud Computing Services IT Service Reviews
on Mar 09, 2016 • Computers & Internet
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