Cloud computing is providing new types of IT services. Some companies move their data center to professional from the third party. Because of economic perspective, they have used cloud computing to reduce expenditure and risk. Two common approaches to adopting cloud computing are the traditional approach and the direct approach. The traditional approach means the development of the system from time to time or can use a direct approach by migrating to a system running in the public cloud.
Cloud computing has some risks such as technical risks and business risks. Technical risk concerns how the applications actually run in the cloud while business-level risk concerns privacy, security, maintaining service level, availability of data, etc.
Based on Dana Gardner's Opinion, The Risk of Cloud Computing consist of:
- Legal issues about the license, service level agreement, issues of permissions, and ownership.
- Longevity concerns the long-term availability of service provider
- Complexity, which has to do with actual software, the software, and the technology.
- Portability.
Research from around the globe is linking the adoption of cloud computing with improved business growth. At the individual firm level, a Microsoft survey of 3000 SMEs found that the SMEs which had embraced cloud services had 40 percent more revenue growth than those surveyed SMEs that were not using cloud services. In addition, a study by the European Union found that the large majority of businesses using cloud services reduce ICT costs by between 10-and 20 percent.
Cloud computing enables ICT services to be delivered over the internet and consumed as a service, on-demand, across a range of devices. In terms of pricing, you can now pay only for what you use – a bit like renting instead of buying. This may reduce the need to purchase expensive hardware or software that could need to be replaced as technology changes.
The combination of high-speed broadband, such as the high-speed broadband available through the National Broadband Network (NBN), and the ever-increasing range of cloud services may provide opportunities for many small businesses that don’t have access to huge ICT budgets.
The Strategy charts a path for the government to help businesses capitalize on the benefits available through cloud computing services. This will involve:
- promoting the benefits of cloud services to small businesses, not-for-profits, and consumers
- the development of a Cloud Consumer Protocol to promote information disclosure about products and services by cloud providers to help ensure consumers are well informed.
Keep an eye out for the industry-specific Digital Business Kits. Up to ten industry peak bodies will be developing tailored ‘how-to’ guides to assist SMEs and not-for-profit organizations (NFPs) to engage in the digital economy, including cloud computing.
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