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Concept of Cloud Computing and Impact on Business Expansion

Student’s Name

Institution

Course

Date
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Cloud Computing

Introduction

The use of cloud computing applications has significantly risen in recent years. However,

majority of individual have no idea what cloud computing entails and how it can be integrated

into their business. This research seeks to answer the question “what is cloud computing and how

can it help in business growth and expansion?” Different scholars define cloud computing

differently. In this case, cloud computing is the access of the on-demand computing resources

using internet, which include software, storage and infrastructure. As a concept, cloud computing

has existed for more than 50 years but has only progressed withing the last two decades to

become the multi-billion industry it is today. Experts predict that the cloud computing market

will be worth approximately $623.3 billion by 2023. This paper provides an understanding on the

concept of cloud computing technology and how it can help business to grow and expand.

Literature Review

Impact of cloud technology on the business

My first source Kiryakova, Angelova, and Yordanova (2015), explains the application of

cloud computing services to business. The authors argue that cloud services positively contribute

to business management, including customer experience management. The use of cloud

computing help businesses achieves economic benefits without heavily investing in their own IT

infrastructure. Some of the benefits include on-demand service, permanent access to the network,

standardization, resource pooling, and scalability. They further discuss the models in cloud

computing which include infrastructure as a service (Mass), Platform as a service (PaaS), and

software as a Service. Furthermore, the authors explain examples of commonly used cloud
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services such as Google Apps, Microsoft Office 365, Zoho Office, and Dropbox, among others. I

find the source very detailed and easy to understand. My second source Ali and Miraz (2013),

discusses how cloud computing can solve data security issues. According to the authors, this can

be achieved through an in-device service. SaaS allows data storage, while PaaS can be used as a

web development tool. Further, the chapter discusses critical approaches in the implementation

of cloud computing, including standardizations, which reduce potential future technical issues.

The benefits of cloud technologies are on-demand services, Network access, resource pooling,

elasticity, and measured services.

Basics of cloud computing

In another source, Srinivas, Reddy, and Qyser (2012) explain the basics of cloud

computing. The author examined various concepts involved in cloud computing, opportunities,

and the importance of cloud computing. Cloud technologies allow easier accessibility of

externalized IT resources. According to this source, unlike clusters and grid computing which

were focused on application, cloud computing is more service-oriented. Common features of

cloud computing include broad network accessibility, resource pooling, elasticity, and measured

service. The technology is capable of supporting a wide spectrum of applications. Due to low

costs and scalability, cloud computing has a multitude of benefits for small companies,

especially in developing countries. Applications such as cloud-deployed enterprise resource

planning (ERP), supply chain management applications (SCM), customer relationship

management (CRM), medical applications, and mobile applications have the potential to reach a

wider audience. Some of the challenges include heavy bandwidth usage, the limited number of

vendors, performance issues, outages, and regulatory requirements. This source is well

researched and backed by relevant literature. Further, the appropriateness of the language makes
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it easier to understand technical terms. This source is very useful and will positively contribute to

my research.

In another source, Huth and Cebula (2011) explain the basics of cloud computing. The

authors answer what entails cloud computing. According to Huth and Cebula, cloud computing

refers subscription-based service where one can access networked storage space and computer

resources. Also, the authors explain the application of cloud computing and how it benefits

businesses. The cloud services help small companies that cannot afford expensive hardware by

eliminating the need to purchase memory storage devices. Although the concept of cloud

computing is a bit confusing, this source explains the basics of cloud computing succinctly. The

source has valuable information that will help me explain the concept of cloud computing. In a

different source, Mirashe and Kalyankar (2010) explore cloud computing. Cloud computing is a

large group of interconnected computers, which can be personal or network servers, public or

private (Mirashe & Kalyankar, 2010). The researchers further outline advantages associated with

cloud computing, which include low cost, better performance, few maintenance problems, low

software updates, data safety, among others. The authors assert that cloud computing benefits

individual users and businesses. Although the arguments are not backed by any relevant

evidence, the article has content that will contribute to writing my research.

Business application of cloud computing

In this source, Youssef (2012) explores cloud computing services and applications. The

scholar argues that cloud computing provides opportunities to businesses, including low-cost

services, flexibility, and computing resources. The source further explains different categories of

cloud computing, which include SaaS, such as Zoho, Google Apps, and Salesforce. PaaS

provides, runs, and maintains system software and computing resources. This includes Windows
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Azure, Google Apps Engine, and Aptana cloud. In the IaaS model, the cloud service provider

provides virtualized computing resources. The further author reviews cloud computing systems

which include public, private, community, and Hybrid clouds. The source is extremely detailed

and addresses most issues related to concepts of cloud computing. In a separate source, Martines

(2020) discusses how to apply cloud computing to a small business. The author lists benefits

associated with cloud computing, which include storing and backing up a company’s data,

running software applications, and streamlining ways through which information is shared.

Cloud services allow easier access to data anywhere as long as they have an internet connection

and compatible devices, allows remote programs, are cost-effective, in addition, easier to

manage.

Benefits of Cloud Computing to Small Business

The source by iNature education solutions (2016) highlights how small businesses save

time and cost by using cloud computing. According to the article, cloud computing has availed

opportunities to small businesses that could only be accessed by big corporations. As a result,

small businesses can now compete with their counterparts due to adequate resources. Some of

the benefits of cloud computing include remote access, which allows anyone anywhere to get

access to data as long there is an internet connection. This is an addition to the exponential

expansion, flexibility, financial optimization, efficiency and effectiveness, and resource

management. The source is extremely useful since it outlines and explains how cloud computing

benefits businesses, which is part of my research. In this source, Idexcel (2019), the author

explores how cloud computing is changing the business world. According to the article, the

cloud has become an important part of professional lives providing each worker with the tool to

perform sophisticated operations using simple techniques. The author asserts that cloud
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computing has improved operational activities as the business expands. It also allows businesses

to deal with customers’ needs efficiently in addition to being cost-effective and flexible. The

article is well researched and critically written. The source clearly explains how cloud

computing is changing the ways businesses conduct their activities. Finally, Easton (2015), in his

Ted talk, discusses cloud computing and its impact on individuals and businesses. The speaker

argues that cloud computing offers flexibility. Also, the technology is easy to use. The

standardization aspect of cloud computing allows businesses to shift between services and

resources as needs arise. This source is extremely important since the speaker talks about cloud

computing from both the consumer and expert perspective. It will help me to explain some

concepts in my research.

Methodology

This research relied on secondary data collected from the internet. The study used

articles, journals, blogs, Ted talks, Google Scholar database, and YouTube videos to explain the

concept of cloud computing. The researcher searched for the information by typing the keywords

relating to the subject of cloud computing. The keywords used include what cloud computing is,

the concept of cloud computing, how does cloud computing affect business growth/expansion,

and “cloud computing + businesses expansion/growth.” The search content was limited to the

current concept of cloud computing. From the search, ten sources were selected which addressed

the research questions: what is cloud computing, and how does it impact the business growth and

expansion?

Discussion

What is cloud computing?

Cloud computing is the use of computing resources (software and hardware) remotely via

internet or broadband connections. The objective is to maximize computing resources while

minimizing costs (Easton, 2015). The resources are available on-demand and need basis rather

than physically present on local storage devices or servers (Idexcel, 2019). Simply, cloud

computing is the collection of hardware and software that provide information technology

resources related services through the internet, which allows retrieval of information from

anywhere. Recently, cloud technologies are seen as a business approach rather than just a

technological venture (Mirtines, 2020; iNature, 2016). Cloud computing provides new means of

acquisition and management of computing resources, software platforms, and abilities that can

be increased and reduced based on changing needs. This allows organizations to focus on their

primary objectives without heavily investing in IT infrastructure. Cloud computing provides for

business optimization and significantly reduces the time needed to adapt and adjust to the

changing market conditions since they have access to unlimited resources (Mirashe and

Kalyankar, 2010).

Types of cloud

Public cloud

In the public cloud, the infrastructure and resources are available to everyone interested

over the internet since there are no restrictions. The cloud service provider provides services to

the clients on pay per use basis (Youssef, 2012). However, in this type, the users cannot be

trusted, and thus security and privacy are a major concern since most of the services offered are

public. Examples of public cloud include Amazon EC2, Google App Engine, and Salesforce.

Private cloud
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In a private cloud, the services are dedicated to a particular organization managed either

by the company itself or contracted to a particular service provider (Youssef, 2012). Private

clouds are considered more secure compared to public ones since users are trusted persons within

the organization.

Community cloud

Community clouds share a similarity with private clouds. However, in cloud computing,

resources are shared by multiple organizations with the same objectives, policies, and security

requirements. For example, an education cloud is used by institutions globally, whose common

goal is to provide education research services.

Hybrid clouds

In a Hybrid cloud, components of two or more public, private, or community clouds are

combined. The components are bound together by standardized technology under a single

management unit. This type of cloud allows organizations to optimize resources.

Critical features of cloud computing

The services are provided based on demand. This means users can access cloud services

anytime when needed. The technology creates an illusion of unlimited computing resources that

can be accessed on-demand, which eliminates the need to make preliminary plans for the long-

term supply (Ali & Miraz, 2013). Services like web apps, server time, processing power,

storage, and networks can be automatized based on the consumer’s needs. The clients further

have permanent access to the network and thus can access resources via the internet anytime

without limitations using different platforms such as mobile phones, laptops, personal digital

assistants (Kiryakova, Yordanova & Angelova, 2015). Additionally, in cloud computing,

resources are pooled together in the cloud and can be used by several users, and are distributed
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based on the consumers’ needs. However, customers have no knowledge or control over the

resources’ location. Other characteristics include elasticity, pay per usage, maintainability,

collaboration, virtualization, green technology, and better performance.

Cloud delivery models

Software as a Service (SaaS)

A SaaS provider provides consumers with access to both resources and apps. This model

makes it unnecessary for the clients to have a physical copy of the software installed in devices

used to access the service. However, the subscriber has little control over the service (Huth and

Cebula, 2011). The computing service provider is in charge of running and maintaining the

application software, the OS, and resources. The consumer sees the SaaS model as a web-based

app interface where the services are provided via the internet and accessed using a web browser.

Users can access different applications such as Gmail, Google Docs using different devices.

Unlike traditional services, in cloud technologies, the customers do not have to purchase

licenses, install, upgrade, maintain or run the application on their device. Other benefits

associated with SaaS include efficiency and scalability.

Platform as a Service (PaaS)

This goes a step above the SaaS setup. In this case, consumers have access to the

components they develop and operate on the internet (Huth & Cebula, 2011). The CSP offers

and maintains both the system software and computing resources. On the other hand, the clients

manage and run the application software under the operating system and on the virtual resources.

In contrast to SaaS that offers consumers readily usable applications, PaaS provides them the

opportunity to design, model, create and test the apps on the cloud and thus can control the

software’s cycle. This allows users in different regions to collaborate on projects.

Infrastructure as a Service

This model basically deals with computational infrastructure. The CSP in this model

offers a set of virtualized resources such as network bandwidth, storage capacity, memory,

processing power. The client has full autonomy to operate and maintain the OS and software

application virtually. IaaS allows the conversion of physical resources into logical resources, and

thus the subscriber can outsource storage and resources like hardware and software.

The Impact of Cloud computing on business

The concept of cloud computing is changing how businesses are conducted. With data

and information access becoming the center for business decision-making, organizations have to

adapt fast. Big corporations such as Google, Microsoft, HP, and Amazon have heavily invested

in cloud service. They rent their services, which provides opportunities to start a business

without the need for traditional physical requirements like a physical office or servers’ facility.

Simply, one can start a business from the comfort of their zone. Similarly, cloud computing

greatly benefitted small businesses that earlier struggled to raise capital for computing resources.

Further, computing service providers offer flexible support, which includes a “pay-you-go”

model without the need for any upfront investment, and therefore businesses can expand or

contract based on the on-demand in real-time (Kiyakova, Angelova & Yordanova, 2015).

Small businesses do not have to invest in IT, office space, and other physical resources

and thus can focus on expansion and growth. This provides them with the opportunity to invest

in other aspects of business, such as marketing and advertisement and consumer experience

management (Mirtines, 2020). Cloud computing eliminates the need to invest in IT

infrastructure, including servers and network equipment. Thus, companies can start their

businesses using fewer resources and scale them as the business grows. Similarly, the
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organization can hire resources that would be expensive to hire, which gives them a competitive

advantage. Similarly, cloud technologies provide an opportunity to use modern information

communication technologies, which are essential for the management of business (Srinivas,

Reddy & Qyser, 2012). In most cases, the latest innovation and software are quite expensive to

purchase; however, cloud computing provides up-to-date technologies and applications.

Furthermore, cloud computing allows companies to increase or reduce processes based on real-

time demand, which supports the growth and expansion of the business (Idexcel, 2019).

Cloud technologies provide for flexibility. In today’s business environment characterized

by dynamism and high competition, flexibility has become critical in strategies. Thus, businesses

have to respond fast to the changing conditions and consumer needs. By using cloud

technologies businesses, organizations can adapt processes, products, and services to the market.

The exponential expansion allows smaller businesses to support unanticipated growth (Mirtines,

2020). In most cases, start-ups need a resource that aids the business expansion, particularly

when an opportunity arises.

The remote accesses to resources allow remote working. The staff can work from

anywhere at any given time as long as they have internet. This allows businesses to contract

workers globally on a need basis. Businesses can outsource some tasks at less cost without

having to pay for services such as health insurance, pay leave, among others. This means the

business can use extra resources to invest in other initiatives while expanding the business.

Furthermore, cloud technology resources are easy to manage. The providers maintain the servers,

while businesses focus on their activities. Additionally, private clouds are more secure compared

to traditional ones, which ensures data safety.

Conclusion
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The use of cloud computing will only rise, as shown by the trend in the last two decades.

Businesses continue to adopt that technology due to the associated benefits of performance,

flexibility, scalability, and cost-effectiveness. There are different types of clouds depending on

the purpose, which include public, private, hybrid, and community. Private clouds are

specifically dedicated to an organization. Similarly, there different models of cloud computing,

which include SaaS, PaaS, and IaaS. Some of the critical features of cloud technologies on-

demand basis, permanent access to the network over different platforms and maintainability,

among others.

Cloud computing technologies positively impact business growth and expansion. Due to

the nature of delivery, businesses can easily expand or decrease based on the demands for their

services. Cloud service providers provide organizations with adequate flexibility and the ability

to scale their businesses as they wish. This is further enhanced by the payment model such as pay

as use/pay as you go. As a result, businesses can use maximum resources, which prevents

wastage. Furthermore, the providers maintain the servers, leaving the organizations to solely

focus on their organizations.

Annotated bibliography

Kiryakova, G., Angelova, N., & Yordanova, L. (2015). Application of cloud computing services

in the business. DOI: 10.15547/tjs.2015. s.01.067

This source discusses ways through which cloud computing services are applied in the

business. The authors list the applications that use cloud services and how they benefit the

business owners. The strength of the article lies in how the authors explain technical subjects in

an appropriate language that is easy to understand. The weakness of the article is how it is

structured, which makes it a little bit difficult to follow. This source will heavily contribute to my

research on cloud computing since it clearly explains what cloud computing is and how it helps

businesses to expand.

Ali, M., & Miraz, M. H. (2013). Cloud computing applications. In Proceedings of the

International Conference on Cloud Computing and e-Governance (Vol. 1). Accessed from

[Link]

This chapter explains the concept of cloud computing and the application. The authors

compare the differences between a traditional computer application and cloud computing. The

strength of this source lies in the sufficient backing from scientific-based evidence and the use of

multiple graphs and summarized charts. This allows easier comprehension of the article. The

weakness of the article is due to how the arguments are constructed. There are some

typographical errors, which makes it difficult to read the article. However, the chapter has

adequate content on the subject of the application of cloud computing.

Srinivas, J., Reddy, K. V. S., & Qyser, A. M. (2012). Cloud computing basics. International

journal of advanced research in computer and communication engineering, 1(5), 343-347.

Accessed from

[Link]

This source discusses the concept of cloud computing. The authors explain what cloud

computing is and how it can be applied to the business. The review further addresses the

comparison between cloud computing and the previous paradigm and what makes it a better

alternative. This is in addition to opportunities and challenges. I find the source very informative

and addresses key aspects of cloud computing. The strength of the article lies in the authors’

expertise and the presentation, which makes it easier to grasp the technical aspects of cloud

computing. There is no known weakness in this source. The article will immensely contribute to

my research since it elaborates on the basics of cloud computing.

Huth, A., & Cebula, J. (2011). The basics of cloud computing. United States Computer.

Accessed from

[Link]

This article by published by the United States computer emergency readiness team. In

this source, the authors explain the basics of cloud computing. One of the strengths is the

simplicity of the article. The language used is appropriate, and the article is well organized. The

weakness is that the authors use a minimal number of sources. However, the content is useful

and will help to add depth to my research.

Mirashe, S. P., & Kalyankar, N. V. (2010). Cloud computing. arXiv preprint arXiv:1003.4074.

Accessed from [Link]

In this essay, the authors discuss cloud computing in general. They explain different

components of cloud computing and how they benefit individual users and businesses. The

article is detailed and addresses most concepts in cloud computing. Furthermore, the authors

explain the benefits associated with cloud computing. The strength of this source lies in how

arguments are presented in a logical manner, which makes it easier to follow and establish

connections. However, the authors failed to cite their sources which impact the reliability and

validity of the information. Overall, the content is valuable and will add depth to my research.

Youssef, A. E. (2012). Exploring cloud computing services and applications. Journal of

Emerging Trends in Computing and Information Sciences, 3(6), 838-847. Accessed from

[Link]

In this journal, the author explores the subject of cloud computing services and

applications. The source is extremely detailed and covers almost all topics on cloud computing.

One of the strengths of this source is how the author argues the key points in an easy-to-

understand manner. Anyone interested in cloud computing can benefit from this source.

Similarly, the flow charts and diagrams enhance the understanding of the content. I didn’t find

any weaknesses. This article will help in expanding the scope of my research by addressing the

application of cloud computing services.

Martins, A. (2020). Cloud computing: A small Business Guide. Accessed from

[Link]
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This article is a guide on how to apply cloud computing to small businesses. The source

highlights the benefits of cloud computing over traditional computing, models of cloud

computing, and forms of data storage. The strength of the article is the structure and how it is

easy to understand the content. The weakness is the shallowness of the source. It only states the

aspects of clouding computing without delving deeper; thus, one requires to complement the

content with other sources. However, the information is valuable and will be useful for my

research.

iNature (2016). 6 Ways Cloud Computing Helps Businesses Save Time and Money. Accessed

from [Link]

money/

In this source, the author lists and explains six ways through which business benefits

from cloud computing. The source addresses the key benefits of cloud computing. The strength

of the source lies in the presentation of the information in a clear and easy-to-understand manner.

The weakness is that the article lacks any external sources that back the author’s argument.

Nonetheless, the article will definitely play a key role in my research to show how small

businesses benefit from cloud computing and how they can easily expand.

Idexcel, (2019). How Cloud Computing is Changing the Business World. Accessed from

[Link]

In this source, the author elaborates on how cloud computing is impacting businesses.

The article is written in an appropriate language that is easier to understand. Moreover, it is well

organized, which is one of the strengths. The arguments are also valid and logical. However,
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there are no author’s names, which makes it difficult to check who wrote the article. Thus, I

cannot ascertain the author’s level of expertise which is a weakness since it impacts the

reliability and credibility of the source. The source will help me in explaining some concepts

associated with cloud computing on how they impact businesses.

Easton, J. (2015). TEDx Talks: Thinking Forward about cloud computing. Accessed from

[Link]

In this Ted Talk, the speaker talks about cloud computing, what it is, how it is impacting

individuals and businesses. In this source, the speaker is very eloquent, which makes it easier to

follow along. Also, the speaker uses anecdotes which allows easier grasping of some technical

concepts. There is no weakness in relation to this source. The video helps me to reflect on the

concept of cloud computing, which is useful in writing and arguing points in research.