Wednesday, June 29, 2011

MBA Business Studies: Case 2

Cloud Computing (Christina Moore, Michael Peabody, Brianne Malliet, & Darren Malliet ) 
Organizations are increasing their reliance on state-of-the-art technologies to help them gain competitive advantage and drive towards success.  One such technology is cloud computing. Before implementing a new technology such as cloud computing an organization needs to identify what it is, how it will benefit them strategically, and any challenges that may arise along with how to overcome them.  The organization should also consider any ethical, legal, social, and global issues. This report has provided an in depth review of cloud computing technology and its possible impact on today’s organizations.

Cloud computing refers to a model of computing where firms and individuals obtain computing power and software applications over the internet, rather than purchasing their own hardware and software. This model can provide many competitive advantages that could help position a firm to better withstand external competitive forces in its environment. One good example of a firm using cloud computing to its advantage is Siemens. This global company implemented a cloud based CRM system that helped them to better fend off external forces including new market entrants, substitute products, customer, and supplier power.
The key resource required in order to implement cloud computing is a solid IP network with enough bandwidth to handle the demand associated with passing large amounts of data back and forth between the cloud supplier and the user. Other challenges include less control over software customization and hardware quality which could greatly affect system uptime and usability. Moving towards a cloud computing platform will also likely require a restructuring of and organizations IT team.

In addition to these challenges there are ethical, legal, social, and global issues to consider in regards to cloud computing. These include data privacy, security, and piracy concerns along with the accountability for violations in each of these areas.  There have been many court cases and rulings regarding these issues but opinions are still mixed as to whether cloud computing will help or hinder resolution of these type of issues. From a global perspective cloud computing offers the opportunity to shrink the world by bringing users together in educational and business collaboration platforms demanding significantly less investment and time.

The concept of cloud computing brings about new opportunities for organizations and individuals that have limited information technology budgets or those who want to spend less on their information technology budgets. For that reason, cloud computing is starting to take the information technology market by storm.
University Of Wisconsin - Whitewater 

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