IMPACT OF CLOUD COMPUTING ON CORPORATIONS
Despite being a recent phenomenon, cloud computing is already disrupting the traditional work practices in the corporate world. Cloud computing, like other new technologies, is changing the way corporations and other business organizations deliver and manage their Information Technology and business services.
Cloud is a phenomenon that’s now firmly entrenched within corporations and many other different industries that aren’t even part of or serving the technology sector. Although business organizations and institutions in the retail, finance, manufacturing, healthcare and other industries are experiencing disruptions by this recent phenomenon, many advantages and benefits are emerging as a result of cloud computing. As a matter of fact, the potential of cloud computing has captured the attention of corporations around the world. Corporations across every industry are increasingly relying on the cloud to conduct most of their activities including developing products, marketing and selling, and managing their supply chains.
For corporations, the decision to move to the cloud is just the beginning of a journey that starts small and gains momentum as they build confidence. After gaining confidence in the cloud, the corporations can now have a combination of the new cloud workloads and their IT investment over the years to form a hybrid IT environment. Of course, these organizations face different challenges when dealing with these hybrid environments, whether in private or public cloud. It’s just part of the journey.
Cloud computing is one of the technological investments corporations are using to drive profitable growth, improve their competitiveness and improve their operational effectiveness. Cloud is a strategic technology infrastructure that’s offering corporations and other organizations transparency and more flexibility as they grow their business operations.
In a survey conducted in 2013, IBM found that companies and business organizations using cloud computing to gain competitive advantage and strengthen their business operations and IT were reporting a gross profit growth 2.5 times higher than organizations that seemed to be more cautious about adopting cloud. The revenue growth for the corporations which had adopted cloud was also found to be double what they had reported before.
According to IBM’s research, cloud computing is impacting the way decisions are made by Chief Executive Officers, Human Resources Executives, as well as Finance and Procurement Executives in the corporate world. In addition to driving efficiency and cutting costs, cloud computing is helping corporations make better business decisions through the extensive use of analytics via cloud.
Corporations and business organizations looking to transition to cloud should start by paying more attention to security. This can be achieved through conducting regular security assessments and audit report just to make sure there is nothing wrong with the protocols. As part of your confidence-building measures, consider having a security workshop hosted by your cloud provider. Corporations must set realistic operations when implementing cloud computing as it will impact on their line of operations. There should be clear communication of all the expectations to all the stakeholder involved. Finally, there’s need to have an integration plan on how the new cloud-based systems will be managed.
Corporations that capitalize on cloud computing capabilities will not just be able to launch their products but also expand their operation model and target new markets.