Question

RQ 10.3 When does cloud computing make sense for a large corporation that already has an IS organization? Give an example of when cloud computing might make sense for a start-up company.

Answer 1

Switching information systems to the Cloud will abolish the need for extensive in-company infrastructure and altering the way Business Intelligence is used to support decision-making this will enable firms to speed up their product development processes and to achieve profitability much more rapidly. Some of the benefits from cloud computing for big organizations include
Cut costs larger companies require heavy-duty servers that are capable of handling a large number of people and cloud is an ideal solution. Where companies have been prone to turn to virtualization as a solution this has turned out be an expensive move, as they require a lot of resources and time. Implementing cloud systems can remove some of the costs associated with dealing with down time while the advantages of the latest cutting edge technology can then also be enjoyed.
Large scale endorsements. Adobe’s creative cloud and Microsoft’s Office 365 are two major examples of software developers adopting cloud computing after recognizing its benefits. The technology driving cloud is dynamic and becoming more mainstream as a greater number of businesses realize it’s potential.

Cloud computing has been shown to enhance business productivity, and as such, there are several types of businesses in the marketplace that could derive benefits from adopting managed IT services for their daily operations. the significant economic benefit an expanding tech start-up could enjoy with cloud computing, and due to this substantial savings, it would be wise for start-up decision makers to consult with a VoIP telephony service provider that can offer cloud computing solutions and determine how efficiencies could be maximized through the use of a remotely managed IT platform. For example of a California air travel start-up called Fly Miwok, an air-taxi company based in Southern California, that had plans to quickly expand operations to the East Coast and Midwest. However, doing so would have required Fly Miwok to invest in software and hardware infrastructure that would allow it to accommodate the far larger data stream it was likely to accrue by branching out into new geographic regions. If FlyMiwork attempted to manage this data internally, the article mentions that the company would have had to invest in an entirely new data center with at least 10 servers and other technical equipment. Fly Miwok would have also needed to hire new employees to operate and maintain the technology, yielding overall expansion costs of more than $250,000 in addition to facility costs. However, by outsourcing that data to a managed IT service, Fly Miwok pays only 80 cents an hour for each server, or an annual payout of roughly $28,000.