Cloud computing has the benefit of reducing the operational costs of a business. An example is the provision of content-network deliveries to third parties, thus shaping up their operations. Cloud computing services are useful to the company as cloud service providers do all the IT infrastructure maintenance. Secondly, start-ups and small businesses are saved from the need of having to build their data centers. Currently, small businesses can access technical capability that would have proved challenging to attain in the past. Through improved technologies, it is worth noting that businesses are in a position to offer better services to their customers.
Cloud computing allows businesses to pool together their resources, thus lowering their operational costs and other expenses. Regardless of the pool of resources or size of the firm, it is critical to note that all businesses can harness the same services. Unlike other approaches, a business only pays for what it uses, thus increasing the benefits of economies of scale and the competitive advantage. Cloud computing also has the privilege of allocating resources automatically, thus improving the efficiency levels in the execution of different processes.
Despite the benefits that come with cloud computing, there are some issues tied to both security and reliability of its services. An example is the Amazon Web Services which has in the past experienced a number of outages, thus affecting the operations of third parties. Although there are ongoing efforts to ensure that the systems are reliable, it is worth noting that much is yet to be attained. In some cases, paying off the monthly fees is seen to be more expensive as compared to having its data centers. The case mainly applies to large organizations which may enjoy economies of scale using their data systems.
There is also a problem with runaway costs that are common in the pay-per-use model. It is imperative to mention that integration of the cloud computing services with the existing infrastructures may lead to mismanagement errors, thus derailing the attainment of the set goals. The buying of cloud software further implies that there is less flexibility of changing the type of services to conform to the needs of the organization or the ongoing market trends. On the contrary, a business becomes wholly dependent on the operations and technologies of the cloud service provider.
Start-ups and new businesses are seen as being better placed to enjoy the benefits that come with cloud computing. The argument rests on the fact that they are often faced by the problem of setting up complex data centers. The high costs imply that they may lag in the adoption of improved technologies. However, cloud computing leads to pooling together of resources, thus giving all businesses equal opportunities to access enhanced cloud computing services.
On the other hand, businesses that mainly use online platforms may find cloud computing as being useful in increasing the customer base and improving the quality of their services. The argument rests on the fact that cloud computing leads to better integration of all processes. Moreover, the burden of changing or upgrading the cloud computing services is handled by the provider as opposed to the business. In short, there is a significant impact on the reduction of operational costs and aligning business operations to the ongoing market trends.