The Impact of Cloud Computing is one of the emergent information system management topics that have increasingly become debatable in the current IT world. Cloud computing is referred to as a disruptive technology which offers an alternative to the in-house IT services. International Data Corporation projects that the public IT cloud services have an increased potential of growth in the new few years by about 27% (Choudhary and Vithayathil, 2013). This is accrued to the advantages associated with the adoption of the technology. With the advantages and disadvantages related to cloud computing, various scholars have argued regarding whether or not the department of Information Technology should be regarded as profit or a cost centre. Choudhary and Vithayathil (2013) provide that the adoption of the technology of cloud computing have the ability of affecting a firm’s structure within the department of IT. Incidentally, the adoption of the technology results in more benefits compared to the faced disadvantages. For instance, increased quality and the enhancement of the cloud-based information services within the organization are examples of benefits arising from the adoption and use of cloud computing as an information system trend.
Cloud computing has impacted the lives of many individuals. Socially, cloud computing has impacted the manner in which people interact over the internet world including those in remote locations. As is, it is possible for an event to reach different parts of the globe within a limited period of time. Additionally, the technological trend is also regarded to have a great potential of impacting the world of business in the near future. This is based on the fact that cloud computing has an economic impact that can arise as a result of its increased adoption levels. As is, cloud computing is an important way of reducing the costs of spending by businesses in the long term with an increased level of output. As a result, it is evident that the productivity gain will also result to an increase in GDP levels. Mature markets such as that of the United States have indicated that the adoption of cloud computing technologies are likely to result in increased capex and opex savings by about 50% and 25% respectively (Choudhary and Vithayathil, 2013).
It is a fact that cloud has a transformative effect. This is evident as the technology aids in creating new business opportunities for the people therefore exposing the companies to opportunities that allow them to harness their power hence new revenue generation opportunities. As it is, the cloud breaks supply chain barriers resulting in an effective and efficient interaction between the suppliers and the clients in the market. With the cloud computing technology, speed, cost reduction, and agility within the functional areas of an enterprise’s information technology is achieved. The transformative aspect of the technology is visible in CRM, HR and IT infrastructure (Garrison, Kim & Wakefield, 2012).
The cloud computing technology is also beneficial to organizations as it addresses the issue of risk equation. Prevalently, any change calls for the evaluation of any potential risks, in this case, the inherent risks, before they can be mitigated. Evidently, the cloud a robust matrix that is considered when storing sensitive data hence establishing a new form of data security for companies (Garrison, Kim & Wakefield, 2012). With the analysis, it is evident that the bottom line of the use of the cloud by companies promotes data security, privacy, availability and increased monitory. As a result, increased customer confidence and robustness is evident for businesses utilizing the cloud services.
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