Project Report: Benefits of Cloud Computing for Business Success

This project report investigates the advantages that businesses can gain by adopting cloud computing. The report begins with an abstract that summarizes the key benefits. The introduction provides a definition of cloud computing and its basic functionalities, contrasting it with traditional IT infrastructure. The body of the report delves into the specific benefits, including significant cost reductions due to decreased capital expenditure and operational fees, the simplicity of cloud-based software applications, platform compatibility across various operating systems, enhanced accessibility of data and information, and improved data backup and security. The conclusion reiterates the core benefits and recommends the adoption of cloud solutions. References are provided in APA format, supporting the analysis with credible sources. The report highlights how cloud computing can improve data mobility, increase productivity, and streamline IT operations for businesses of all sizes.

The Benefits of Using Cloud Computing
Student’s name
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Abstract
The advent of cloud computing has taken the IT world by storm. Although the popularity
of Gmail and Yahoo Mail has been the most common face of cloud computing, now more
prominent companies are stepping into the arena, and more complex solutions are being offered.
Cloud computing is the provision of services through the internet where data and software are
stored not on the desktop but third-party servers. Companies can switch services or use more
sophisticated software and platforms without incurring any capital expenditure. This arena has
particular implications for small businesses as they have the most to gain from it. The decrease in
costs helps enterprises and startups to access and use applications that they could not afford
before. It also enables them to share data and communicate easily with remote locations. Cloud
computing is not dependent on any system except the internet, and thus, things can be done faster
and more efficiently. New applications can be launched and implemented without incurring high
costs. Cloud computing systems can provide smaller firms at the same level of software as large
companies at lower prices. Cloud computing systems have better security systems and are better
at managing and processing data. They can accommodate the company’s needs during peak
seasons and reduce operating costs during low seasons. The pay as you go method decreases
wastage of resources and finances and helps in trimming the IT budget. The around the clock
availability of data helps in increasing productivity. Thus, businesses face numerous benefits
from cloud computing.
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Introduction
Cloud computing is merely using the internet to retain data and applications. The users do
not have to purchase and install software and can use applications through any medium that has
internet. Services and storage are provided through the internet. This technology is more efficient
as it centralizes memory and processing. Basic examples of cloud computing include email
services offered by Yahoo and Google. Unlike Microsoft Outlook, which needs to be purchased
and installed on the computer, Gmail just requires an internet connection. Anti-virus software
that automatically updates itself is another example of cloud computing. Thus cloud computing
saves on licensing and installation costs and also the risk of your computer crashing. In cloud
computing, the server and applications are on the cloud and managed by the service provider
(Vasiljeva, Shaikhulina, & Kreslins, 2017).
The user only gets to use the services without any of the management. Although many
large businesses have adopted cloud computing as well, it holds particular implications for small
businesses. Cloud computing provides a new way for small businesses to make use of
technology and software without incurring licensing costs (Vasiljeva et al., 2017). However,
there may be some drawbacks, such as privacy and operational expenses (Subramanian &
Jeyaraj, 2018). Nevertheless, cloud computing is a significant development affecting information
systems and business models across the sectors (Avram, 2014). This report analyzes the benefits
that businesses may realize by opting for cloud computing.
The benefits of using cloud computing
(i) Cost reduction
Companies stand to benefit more as they gain access to high tech applications at a lower
total cost; for example, Google Apps charges $50 per user annually. Due to the advent of cloud
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computing, smaller companies such as SMEs can now take advantage of complex applications
without incurring the high capital expenditure (Khayer, Talukder, & Hossain, 2020). They can
make use of processing, budgeting, accounting, and other applications online at a regular
operational fee and without any substantial investment in hardware, software, or installation
charges (Avram, 2014). Companies have to pay a small annual fee rather than a onetime license
fee with costly upgrades and yearly purchases of desktop applications. Firms with less than 100
employees usually are more sensitive to cost increases due to their lower total revenues as
compared to larger companies. They cannot afford to spend hundreds of dollars on single
licenses, and cloud computing provides a cheaper and more efficient alternative.
(ii) The simplicity of the software applications in clouds
Another benefit for corporations is the simplicity of the software applications in clouds.
Many cloud computing providers offer a focused and straightforward application without frills
and fancies (Chatzithanasis & Michalakelis, 2018). As users often do not use many of the
features available on the programs, they aim to provide applications that are limited but get the
job done. These simple applications are often free as well, which benefits the smaller companies
as they don’t need to pay for inbuilt features that they don’t require. Compared to desktop
applications, they are simpler and more limited.
(iii) Platform Compatibility
Cloud computing is neutral when it comes to platforms and works well over Windows,
Apple, and other operating systems. Thus it benefits organizations that have a combination of
platforms and systems such as MessagingLab, which provides marketing communications to
healthcare companies (Zheng, Liang, & Fang, 2019). Microsoft and Apple systems, although
they claim to be free of cross-platform issues, companies lose formatting when working with
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both. Due to this neutrality, cloud computing makes it easier for employees in different areas to
work on the same applications and access data, thus increasing data portability. It also makes it
easier to share data and documents, which decreases dependency on computer systems and the
time it takes to disperse information. Companies thus are not dependent on computer systems, as
cloud computing systems can be used easily from any system (Khayer et al., 2020). These
applications can also be used easily from mobile phones and tablets; thus, the ease of
communication and data management increases multifold.
(iv) Easier accessibility of data and information
As cloud computing systems are based on centralized servers and not on the company’s
network, they are accessible at all times. Applications can be used anywhere and anytime. Even
if the user is offline, applications can be used in an offline mode and then synced later (Paul &
Ghose, 2012). Cloud computing decreases the time lag between creating and sharing data. Cloud
applications such as Skype reduces the costs of communications and are available around the
clock. Video conferencing and international call costs have plummeted for companies using
Skype. Services like SugarSync provide access to one’s desktop from anywhere and at any time.
Desktop applications are not available unless the specific computer is at hand, but cloud
applications are just dependent on internet access and any pc, mac, laptop, mobile or tablet,
which leads to an increase in productivity and ease of communication (Paul & Ghose, 2012).
(v) Cloud computing acts as a backup in case of data loss
A significant benefit of cloud computing’s independence from computer systems is that if
the company’s system crashes, then data is safe and secure due to it being stored on the cloud
rather than on the local network (Noor, Zeadally, & Alfazi, 2018). Although there are concerns
about privacy and security of data in cloud computing and the company has less control over the
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data the third party storage of data also protects it from being lost due to system crashes (Noor et
al., 2018).
Conclusion
Cloud computing benefits all sorts of businesses through its decrease in costs and
maintenance and how it leads to better data mobility and increases productivity. Companies can
achieve significant benefits from cloud computing. To switch their software needs from internal
systems that require buying hardware, software, and licensing fees as well as installation and
support costs to cloud solutions that charge a small annual or monthly fee seems a wise move.
Cloud software is usually ‘pay as you go,’ meaning the company just has to pay for the services
it uses and when it uses them rather than installing software that is left idle most of the time.
Cloud solutions are also more efficient as they have centralized systems and multiple data
centers; they can process and store more considerable amounts of data as well as make sure
information is available at all times. They are easy to set up and install and easy to use. Many
simple applications are free of cost and focus on getting the task done.
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References
Avram, M. G. (2014). Advantages and Challenges of Adopting Cloud Computing from an
Enterprise Perspective. Procedia Technology, 12, 529–534.
https://doi.org/10.1016/j.protcy.2013.12.525
Chatzithanasis, G., & Michalakelis, C. (2018). The Benefits of Cloud Computing: Evidence
From Greece. International Journal of Technology Diffusion, 9(2), 61–73.
https://doi.org/10.4018/IJTD.2018040104
Khayer, A., Talukder, Md. S., & Hossain, Md. N. (2020). Cloud computing adoption and its
impact on SMEs’ performance for cloud supported operations: A dual-stage analytical
approach. Technology in Society, 60, 101225.
https://doi.org/10.1016/j.techsoc.2019.101225
Noor, T. H., Zeadally, S., & Alfazi, A. (2018). Mobile cloud computing: Challenges and future
research directions. Journal of Network and Computer Applications, 115, 70–85.
https://doi.org/10.1016/j.jnca.2018.04.018
Paul, P. K., & Ghose, M. K. (2012). Cloud Computing: Possibilities, Challenges and
Opportunities with Special Reference to its Emerging Need in the Academic and
Working Area of Information Science. Procedia Engineering, 38, 2222–2227.
https://doi.org/10.1016/j.proeng.2012.06.267
Subramanian, N., & Jeyaraj, A. (2018). Recent security challenges in cloud computing.
Computers & Electrical Engineering, 71, 28–42.
https://doi.org/10.1016/j.compeleceng.2018.06.006
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Vasiljeva, T., Shaikhulina, S., & Kreslins, K. (2017). Cloud Computing: Business Perspectives,
Benefits and Challenges for Small and Medium Enterprises (Case of Latvia). Procedia
Engineering, 178, 443–451. https://doi.org/10.1016/j.proeng.2017.01.087
Zheng, Q., Liang, C., & Fang, Y. (2019). Impact of a firm’s physical and knowledge capital
intensities on its selection of a cloud computing deployment model. Information &
Management, 103259. https://doi.org/10.1016/j.im.2019.103259
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