cloud computing – conclusion

With competitive nature of the business environment being enhanced by globalization, entities are shifting to value adding processes that ensure their competitive advantage is enhanced. Though Information technology has been associated with enhanced efficiency in business processes, investments in the area have not had a clear association with an enhanced business value (Ko & Osei-Bryson, 2006). A recent technological advancement that promises better future for information technology as a value adding tool of organizations is cloud computing. The purpose of this paper was thus to evaluate how the adoption of cloud computing betters the way IT can deliver value to business. The paper evaluated this by reviewing literature on IT link to business value and then literature on various aspects of cloud computing to inform on how this technology betters the way IT can add value to business.

From the review conducted on the link between IT and business value, a clear cut evidence of its association with business value creation has mainly been curtailed by huge investments outlay in the area. The advent of cloud computing technology however presents an opportunity for IT to provide a clear cut link to business value addition. For instance, cloud computing aspects allowing access of applications from providers without having to install them in the entity’s computer systems have provided ways for entity’s to minimize the capital costs associated with IT systems adoption. Cloud computing has also provided opportunities for increased efficiency of business operations through faster retrieval of information thus enhancing the efficiency of business processes. By avoiding delays associated with distributed computing systems, cloud computing offers business entity’s an opportunity to improve their service thus gain the trust and loyalty of the customers. Further cost saving advantages of cloud computing are offered by its pricing model that allows resources to be paid as they are used, presenting an opportunity for entities to scale the use of available resources increasing their capacity with increased need. By doing this, the organizations that have adopted cloud computing technology can avoid payment for resources that are underutilized.

Despite these opportunities, various challenges need to be addressed for cloud computing adoption to be ultimately beneficial. Such challenges include ensuring data security and privacy is not breached on adoption and that providers of cloud computing products do not lock users out of their data resulting into massive business losses. To ensure such risks are addressed, a legislative framework dealing with accreditation of providers and a coordinated approach among providers to deal with security risks are necessary steps that will ensure security and privacy issues are adequately addressed. Ultimately the adoption of cloud computing by firms should be evaluated on a firm-by-firm basis based on such aspects as IT resources currently held, sensitivity of data the organization’s system’s deals with, utilization pattern of the resources, and the criticality of work done by the company. Evaluation of these matters would ensure that the adoption of cloud computing is only carried out when it proves to be a profitable and value adding activity for the entity.

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