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Running Head: STRATEGIC IMPORTANCE OF CLOUD COMPUTING

Strategic Importance of Cloud Computing in Business Organizations

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Abstract
The main objective of this study is to find out the importance of cloud computing to
the business organization. Cloud computing brings out dynamism in business. Currently, the
world of business experiences the losses resulting from inadequate IT infrastructure. The
reliable technology is in high demand and also affordable, cloud computing happens to be
one of such remarkable technology. Suffice to say that grid computing proceeded with cloud
computing. The technological operation of a business is entirely transformed by cloud
computing by setting up a flexible and adaptable environment to meet with dynamic
customer needs (Padilla, Milton, and Johnson, 2015).
Currently, business organizations need to attain more with small financial investment.
With a tight, cloud computing becomes a suitable option to ensure that operations run
effectively in the organization. By using cloud computing, unnecessary operation costs, such
as administrative, software, and hardware, can be avoided (Hudaib et al., 2014). The reduced
expenses compel business organizations to use cloud technology. The finding of the paper is
the cloud computing increases flexibility, scalability, secure document sharing, and agility.
By exploring the cloud computing service models available, this study highlights the effect of
cloud computing on business organizations.
Keywords: Service model, grid computing, cloud computing, cloud storage, business.

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Introduction
The organizations benefit from cloud computing strategically depending on the model
they use in their businesses. The suitability of the model depends on whether it will impact
customers positively or negatively (Hudaib et al., 2014). Cloud computing descended from
grid computing. The only difference between cloud computing and grid computing is that
there is no direct accessibility of the resources meant for business applications. Grid
computing involves dividing tasks into small portions to run on different servers (Sanjay Ram
and Vijayaraj, 2011). The organization servers’ hosts computing clouds that offer services to
others. The mode in which the services are provided can either be on pay per use or ondemand basis. Examples of business functions that utilize cloud include accounting, CRM,
custom build apps, and HR
Hudaib et al. (2014) notes that one of the features that makes cloud computing an
exceptional technological tool for small and medium enterprises is that customers pay as per
use basis. In this way, customers have to shift focus usage and stop worrying about hardware,
software, and maintenance. Padilla, Milton, and Johnson (2015) stated that cloud computing
services providers frequently upgrade services and therefore enhancing performance and
security. One of the best examples of the cloud computing system is Amazon Web Services
(AWS).
The cloud computing system is designed to closely track all the resources of the
system, which enables providers such as AWS to charge fees for processing usage, storage,
and network. This paper intends to highlight cloud computing technology. The next section
would be to describe the features of cloud computing, then cloud computing models of
service, the significance of cloud computing to the organizations, and finally concluding the
paper.

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What is Cloud Computing?
One of the most highly demanded innovation in the market today is cloud computing.
Sanjay Ram and Vijayaraj (2011) refers to a pool of virtualized resources as the cloud.
However, the precise definition of cloud computing is still subject to debate among various
scholars. There are several definitions of cloud computing that have been written. S...