Analyzing the Impacts of Cloud Computing on Modern Businesses

This report examines the impacts of cloud computing on businesses. It highlights the advantages, such as cost reduction, scalability, and improved agility through internet access, along with the challenges of network traffic, outages, and security threats. The report discusses the evolution of cloud computing, its impact on employment and economic development, and forecasts a hybrid future combining on-premises and cloud-based solutions. It analyzes the benefits of cloud computing including the reduced cost of computing by 45% and the ability to facilitate timely response to customers. However, it also addresses the disadvantages, such as network outages and security risks. Overall, the report provides a comprehensive analysis of the current state and future prospects of cloud computing in the business world, emphasizing its role in modernizing operations and fostering economic growth.

Running head: IMPACTS OF CLOUD COMPUTING TO BUSINESSES 1
Cloud computing
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IMPACTS OF CLOUD COMPUTING TO BUSINESSES 2
Impacts of cloud computing to businesses
Hardware, services, and resources location with the advanced computing technologies
available today are of less concern to a computer user. This technology of virtual resource
storage is well known as cloud computing. This technology has been used in many businesses
since its invention in the 2000s, and the impact in the general economy is fairly good hence
gearing its further adoption in businesses.
Cloud computing has contributed to the flexibility of computing in businesses with a
great margin. A computer user entitled to data processing in the organization can access the data
from the cloud, whether from home or while on a business trip through the internet (Xue, & Xin,
2016). The employees, therefore, don’t need to be in a central location to deliver services.
The cost of cloud computing in businesses is also fairly low in comparison to traditional
computing technologies. The cost of computation in cloud computing is believed to be 45% less
than the traditional methods. According to Jasma (2013), the cost of storage in physical disks is
high, owing to the cost of storage devices. Interestingly, the software and hardware pieces update
automatically hence further reducing the cost of computation in the businesses by saving expert
time. The reduced cost of computation in businesses consequently improves the general
economy status.
With the solid availability of the internet, cloud computing facilitates timely response to
the customers hence agility. Cloud computing is facilitating high scalability and reduces on table
computing devices in the office (Tarawneh, & Abdulrahman, 2019). Unlike traditional
computing technologies that inconvenience scalability, cloud computing facilitates the expansion
of the resources. Central resource location in traditional computing subject businesses to data
security threats even with a single attack. Cloud computing increases the security of the

IMPACTS OF CLOUD COMPUTING TO BUSINESSES 3
resources by decentralizing it, hence an attack on one resource has a little effect. Gearing
development of new internet technologies promotes employment and advancement in businesses
hence economic development.
Despite the above advantages, cloud computing has caused some inconvenience to
businesses through pernicious network traffic. Network outage has also profoundly and
negatively affected businesses to the point of halting operations at times (Dar, 2018). Attackers
and hackers target and tap data in the network system and transit; this is, at times, done through
brute force attacks or malware programs costing the businesses heavily.
Future of cloud computing
The future of cloud computing is likely to be a hybrid of the current on-premises
computation and the cloud-based software. This hybrid combination will have scalability, agility,
foolproof, secure and more scalable than the current state of cloud computing. The technology is
likely to become the next big thing in computing with account on the rate at which network and
internet bandwidth is availed globally. The 5G internet will effectively handle the issue internet
outage. Cloud computing may also be preferred for on accounts of reducing the on table
computing hardware pieces.

IMPACTS OF CLOUD COMPUTING TO BUSINESSES 4
References
Dar, A. A. (2018). Cloud Computing-Positive Impacts and Challenges in Business
Perspective. Journal of Computer Science & Systems Biology, 12, 15-18.
Jasma, (2013)
Tarawneh, A., & Abdulrahman, A. A. (2019). Analysis and Management of Risk Related to
Using Cloud Computing in Business: Employee’s Perception. International Journal of
Management, 10(6).
Xue, C. T. S., & Xin, F. T. W. (2016). Benefits and challenges of the adoption of cloud
computing in business. International Journal on Cloud Computing: Services and
Architecture, 6(6), 01-15.