Impact of cloud computing.docx

Impact of cloud computing.docx - Running Head CLOUD...

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Running Head: CLOUD COMPUTING 1 The Impact of Cloud Computing on the Enterprise Name: University Affiliation Table of Contents 1.0 Introduction ..................................................................................................................................... 3
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CLOUD COMPUTING 2 1.2 Background: Cloud Computing in Enterprises ................................................................................ 4 1.2.3 Definition of cloud computing .............................................................................................. 4 1.2.4 Integrating cloud computing in business environment .......................................................... 4 1.2.4 Cloud services delivery levels for enterprises ....................................................................... 5 1.3 Rationale and significance of the report ........................................................................................... 6 2.0 Positive Impacts of Cloud Computing on Enterprises ..................................................................... 7 2.1 Levels of cloud computing impacts ............................................................................................. 7 2.3 Business Model Innovation level ................................................................................................. 8 2.3.1 Set pace for new business models and setting up of business ecosystems ............................ 8 2.3.2 Security Enhancement .......................................................................................................... 9 2.4 The Utility Level ....................................................................................................................... 10 2.4.1 Higher service levels despite lowered costs ........................................................................ 10 2.4.2 Impacts on Enterprise Software .......................................................................................... 12 2.4.3 Impacts to Software Vendors .............................................................................................. 12 2.5 The Process Transformation Level ................................................................................................ 13 2.5.1 Improved Business Processes ............................................................................................. 13 2.5.2 Storage space ...................................................................................................................... 14 2.5.3 Extended market reach ........................................................................................................ 14 2.5.4 Promoting attainment of sustainable corporate responsibility ............................................. 15 3.0 Negative Impacts of Cloud Computing on Enterprises .................................................................. 16 3.1 Security issuesmakes up ............................................................................................................ 16 3.2 Loss of Confidentiality and privacy ........................................................................................... 17 3.3 Technical issues ......................................................................................................................... 18 3.4 Complicates business operations ............................................................................................... 18 4.0 Recommendations ......................................................................................................................... 19 5.0 Conclusion ..................................................................................................................................... 19 6.0 References ..................................................................................................................................... 21 1.0 Introduction Cloud computing denotes a paradigm shift in computing with the capacity to revolutionize the entire perspective, through which enterprises view computing in contemporary business management. Presently, numerous computing devices, such as
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CLOUD COMPUTING 3 laptops, desktops, tablets and several other devices have penetrated enterprises, as a result, becoming shockingly requisite (Misra and Mondal 2010). Accordingly, it is deducible that cloud computing is indeed an innovative paradigm for enterprises that integrates into a single environment applications, business models and architecture, as well as a range of professionals in performing business tasks within the Internet medium. To this end, an underlying argument is that cloud computing has the potential to revolutionise business scenario. Budriene and Zalieckaite (2012) has supported the capacity of cloud computing to completely change the way businesses are run, as well as indicated how it poses as a paradigm shift from the conventional business computing. An on-going state of uncertainties on the impacts of cloud computing on enterprises has complicated the whole cloud adoption arena. Current studies have established that the existent pricing patterns for cloud services along with a range of other factors have made it suitable for small and medium-sized enterprises (SME). Contemporary surveys have also indicated that cloud services may not be suitable for the large-sized enterprises. Despite this, no criteria have been established to consider the factors that define whether a company is small, medium-sized or large, and whether it should be based on annual revenues or employee size (Budriene & Zalieckaite 2012). Based on this premise, this report examines the impacts of cloud computing on the enterprise. It examines the background of cloud computing deployment in
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