Description: Economists and pundits have long feared the emergence of what they called “hollow corporations,” or businesses that don’t actually produce actual goods or services themselves, but instead act as brokers or intermediaries relying on networks of suppliers and partners.
Source: Forbes .com.
Date: Sept 19, 2011
Where are these services coming from? Look to the cloud.
Yes, cloud computing enables cost savings — as companies can access technology and applications on-demand on an as-needed basis and pay for only what they use. And yes, this fosters greater agility, with less reliance on legacy IT assets. But the changes go even deeper that that. Consider the ways cloud computing is altering our business landscape: Read rest of story
Questions for discussion:
- What ways can the Cloud be a boost to our sagging economy and give it a boost?
2. List and describe the ways cloud computing is altering our business landscape.
Aleigha Hopkins
Cloud computing is undoubtedly revolutionizing the way in which people do business. Easier accessibility, a wider customer base, and minimal start up costs are just a few of the ways that cloud computing is changing the business world. However, I believe that this increased accessibility may be detrimental to the system. The ease with which any person can now start up any kind of business that he or she can think of will jam the e-commerce channels with the products of ‘entrepreneurs’ who are just trying to make a quick buck. Cloud computing does not require that a person believe in, invest (much) in, or push for his or her product. The integrity of a business operation is compromised by cloud computing, because failure through this medium does not have large enough consequences. Cloud computing will attract a more skeezy crowd because of the appeals of earning money while sitting at home and doing virtually nothing. Once this type of businessman is introduced into the marketplace, people may lose faith with the whole system because they can never be sure what kind of person is on the other end of the business transaction. While cloud computing will open up the internet market to many worthwhile products, it will also bog the market down with the get rich quick schemes of others.
Jillian Kruschell
As our population becomes increasingly educated on cloud computing I think that it could absolutely provide a boost to our economy simply because it allows new companies to start up without having to make a significant investment in technology. This can offer opportunities to entrepreneurs who have previously struggled to get together the start up costs to launch a new idea, and in turn provide job openings.
However, something that this article failed to mention is that despite of the convenience of this new phenomenon it also provides large risks. Having all of your information available in clouds makes it accessible to you no matter where you are, but it also makes it more accessible to hackers which can not only put your company at risk but the personal information of any clients of your company. I would personally hesitate to give my information to a company based upon cloud computing because I feel that it is less secure. Does anyone else feel that this is a valid concern?
Jake Thorogood
Cloud Computing is a unique innovation whose full benefit has yet to be realized. The emergence of on-demand IT services where companies only pay for the services, hardware, and computer time that they require has lowered barriers to entry in many IT related industries. These same innovations are slowly migrating to other industries as well. One of the major benefits of this model involves lowering IT start-up costs. This is especially beneficial during a period of economic slowdown, as it enables new companies to open their doors without financing significant technology expenditures that may otherwise have been required. Many companies offer everything from database management to website development and hosting, email services, and even shipping and warehouse management. This enables almost any type of business to provide efficient, low cost products and services in a manner that can compete with many of the larger providers. Essentially, the emergence of cloud computing levels the playing field between start-up companies and established corporate giants.
An interesting side-effect of cloud computing is the development of the micro-transaction business model. This relies on ease of access and low costs products and services being purchased more frequently, often due to their convenience or limited-lifespan of usefulness new technologies receive today. While a consumer may take time to contemplate a $60 software purchase, most people will not think twice about spending $1 on the app store. This has enabled new business models that can target a much larger market. This is only made possible through cloud computing by lowering the fixed costs per product and allowing the model to scale to nearly any size.
Raj
Cloud computing is a great innovation and many experts are claiming it is only through innovation that will get the American economy will get back on track. Cloud computing can save organizations massive amounts of money on capital and maintenance not to mention create new jobs. It would also be improving the productivity of many fields from health care to delivery supply chains with instant access to a central source.
I personally don’t see the different in the security we have now or with cloud computing. If you use Gmail, Hotmail, or post pictures on Flickr, you are just as vulnerable to hackers as on a traditional cloud service. Right now hackers regularly get into the most secure government and banking servers, so it’s not like your information is really that secure as it is to begin with.
The biggest threat I see is cloud computing becoming another utility that we are billed by usage and forced to be completely dependent on. As just another required complement to the computer, as the internet is now. It looks like in a few years down the road we will all have both monthly internet and cloud service bills to be able to actually use our computers.
Jason Hamlyn
Cloud computing will eventually be the future of our daily life in computers, but as it stands right now there are to many hurdles in the way of it being a big sustainable resource for companies and individuals to rely on. Of course everyone has heard of the Drop box, or Microsoft’s Skydrive, or even the new entrants into the Cloud market Android with their Music Beta site, and Apple with their iCloud. Most of these require fairly expensive subscriptions that for personal users making it a very large barrier to entry to use the cloud marketplace in any kind of substantial way. Not to mention that the Internet Service Providers that are currently putting into place bandwidth caps on their subscribers accounts, the 3rd major barrier that is preventing this from becoming a widely used form of storage is that ISP’s still don’t have enough speed for users to be able to use this for large files such as streaming movies from Netflix whether it be on your phone, or on your computer at home.
These hurdles need to be cleared in order for this to become a major aid to the economy and to increase efficiency not only at the workplace but at home as well.
Bubba_3
The cloud has good and bad to as everything else does. Some things good that the cloud has to it is that you can access it from anywhere in the world as long as you have a internet connection. It would be amazing, in my personal opinion for people in offices. The reason why I say this is because if one college is in Las Vegas at a conference, and he needs to send some work over to his other college in Lethbridge then it would take a long time and if it’s a big file most likely not doable because of the size of the file. This is where the cloud would come handy. This is one way that it would benefit our business sector. Another thing that it would put more people to work creating the tools necessary to do such a task. As easy as it sounds it really isn’t that easy. A bad that could happen too is that the devices that we use for digital storage, such as portable external hard drives and USB keys they wouldn’t be put to use as much and there wouldn’t be as much demand for them and people who manufacture those items will lose there jobs.
Jordan Alexander
Cloud computing is a revolutionary idea where data/applications/programs no longer need to be stored at on your own system. It is the ability to use the massive data storing capabilities of huge corporations like Google, Yahoo, Microsoft to store personal and or business data on their servers opposed to your own.
This has several huge implications, as no longer do the small starting firms need to purchase their own servers to store data. The cost to create your own servers databases are immense and with this new “pay as you use” technique for storing data, this gives an advantage to all those companies who cannot afford the luxury of servers. The data storing capabilities of these huge corporations is immense, literally with a seemingly endless supply of data storage.
Because of the fact that all your crucial information is no longer stored on your companies servers can create problems and controversy. Certain data is soo crucial to a company that it cannot function without it. Topics such as security become a huge conflict and leads to companies who are not willing to put themselves at a risk for data theft/loss etc. However, these problems are quickly diminishing as security from huge corporations will likely be the best of the best. Everyday they strive to maintain the most secure systems avaialable on todays markets, and even some offer guarantees on your datas security. As well as if your database has errors/viruses, they are now able to freeze your system, create an identical copy so you may continue your company duties, and investigate the frozen one until the problem is corrected and restore the original. This means there is no longer downtime on your servers if a problem should arise! This is huge for a company, as if your computers/IT is shut down for even just a day, millions of dollars could be a stake.
Therefore Cloud Computing is slowly but surely going to become an increasingly popular and affordable way to store data/applications/programs. The one criticism is security, and with the best experts in the world working on security, it will only prove more and more usefull in the world we live in today.
Breanne Marton
I think that cloud computing will give our economy a boost in the future as it looks like it is a technology that is going to be around for a while. Since so many companies have already embraced the technology and we have so many organizations clearly geared towards it I believe that this will create many new opportunities for work. This in turn will help our economy as it becomes part of the business cycle. However, I believe that initially this will create work for some individuals but as with any technology, eventually this will turn into another IT job that can be handled by a few select individuals. Although some of these organizations will create this into a full time organization to run, I fully believe that in a few years it will have deteriorated in its need for individuals and will become automated as with other technological advances. I also don’t know how big the demand will be for this product. I believe that many individuals and organizations will embrace this technology with time, but judging by how many companies are already in existence around this industry, I can’t see that it will be capable for that many more organizations to undertake this as a profitable business venture on its own. Coupled with a known computer brand like Apple and iCloud, I can see how this could be a good investment since your brand is already known and you will already have a loyal consumer base that will embrace this technology as one of the newest “upgrades”. However, I don’t know that many “no name” brands of this type will be able to succeed in this area. I believe that we will see a dominance of those organizations already known and perhaps a few additions but I don’t honestly think that that many more organizations will be able to be profitable from this venture.
Wale Obateru
Cloud computing is an innovation that would greatly lead to technological advancement in the world. The present day economy is largely driven by technology in terms of productivity and efficiency, hence the need for the availabity of technolgy in every sector of the economy to help drive it forward. This would not be possible if every small or large business have to purchase thier own servers before they can have access to these technologies. Apart from it being expensive to buy and maintain, it also consumes space and businesses would have had to increase the prices of their output in order to recover their cost. Thanks to cloud computing, this is not the case. This form of technology has made it possible for businesses to access the internet at very affordable prices, eliminating the need for each business to have their own server which is cost saving. It also serves as a means of generating revenue for those who have servers because they can give a portion out for a fee which can be profitable. Cloud computing allows businesses access various information online that can be useful in growing the business. Although, there could also be some disadvantages associated with cloud computing. Due to ever increasing number of businesses using cloud computing, it could lead to network traffic which can slow down performance which is not good for business efficiency. But if this issue can be addressed, cloud computing is the best technological solution for businesses.
Sam Chen
For sure cloud computer is good for economic. According to a research, every ten dollar that is investing In IT department in a company, there is eight dollar for maintaining internal system that is already existed and not for upgrade the system. If the company can use cloud computer system this eighty percent of maintaining can reduce a lot for investing new product or the area is more import. Merrill Lynch (one of biggest investment bank and bond business) says the revenue of cloud computer system in next five years is night-five billion. It is twelve percent of software market in the world. The reason cloud computer system is so profitable is widespread internet. Internet is like water and electricity that is necessary for living not only in office or study. Furthermore, the rise of Mobile Internet Device is one of reason too. Hence, the file/information that users use in computer, it might need to be use on cell phone. Therefore, the best way to solve this is upload the file/information on the internet (cloud computer) than access to internet to download. This can save the time, cost and space for transfer file in different device. Clearly, cloud computer is good for economic for save cost, space and time.
Kelsey Heather
Cloud Computing is an innovation that can certainly boost our economy. Like most new technology, cloud computing offers businesses a fast, more cost efficient, way to provide services to consumers. Cheap starts up costs are a great way for companies to enter an industry and start making money faster. However, cloud computing can also present some serious security risks when it comes to privacy of information and who can gain access to that information. More and more consumers are becoming wary of how secure their information is, especially since identity theft is not hard to accomplish in this day and age. Until cloud computing can offer evidence that our information is completely secured and not accessible to any outside threats, many people will remain uneasy about whether or not it is a risk they are willing to take.
I think that any way of saving costs and providing a fast and efficient way for consumers to purchase products and services, can generate a huge boost to our economy, as long as it is able to successfully protect the information and privacy of its customers. As cloud computing continues to become accessible and more and more people become aware of it, the market for it will continue to grow. It is a great innovation and there is no doubt in my mind that it will continue to receive attention from both consumers and businesses alike, while consistently helping to boost our economy.
Yanmei Sun
Today, with the Internet around the world, we do not suspect that cloud computing bring convenience to the user application.As a global leader in the IT industry: IBM, Microsoft, Google and other IT giants have made an example to cloud computing applications.Although some applications only just started, but already envisioning the future of web applications fast and convenient.According to the article and researches that I did, cloud computing provides the most reliable and secure data storage center, users no longer need to worry about data loss, viruses or other problems.Also,cloud computing on the client devices require a minimum, and most convenient to use.Moreover,cloud computing can be achieved easily between different devices to share data and applications. Last, as companies can access technology and applications on-demand on an as-needed basis and pay for only what they use, it enables the company to save cost. In conclusion, cloud computing is a great innovation, it is not only smooth out the business which is caused by the size of the gap between the pros and cons, and most likely to have changed the main advantages and disadvantages.
Kelsey K
As stated, Cloud computing decreases costs and increases savings. It could be the development needed in advance our economy. It seems as though this advance in technology could really open up new channels and ways to access information that could not previously be accessed as easily. I think the article is affective in stating that cloud computing is doing a lot more to our economy then people understand or even begin to imagine. It seems as though it could be the development needed to give business the extra push. More and more, technology is relied upon, and this is an example of that. Technology is constantly providing more and more ways to easily and conveniently provide services worldwide.
brett pudwell
Cloud computing is revolutionizing the way companies (both large and small) can enter, compete, and succeed in the market nowadays. As Porter’s force, the threat of new entry becomes increasingly stronger, the market becomes flooded with new innovations and companies using the cloud to make information and technology available for everyone. As cost rise and the economy declines, it is becoming harder and harder for business to exist, let alone thrive. As cloud computing becomes more advanced and ever more prevalent, some major costs for businesses and corporations are lowered, making it easier for them to operate and allows for them to spend this money in other crucial areas. This is good for the businesses and better for the consumer, as goods become cheaper and more readily available. It is more important now than ever before that companies adapt to the changing platforms of business and accept that the way of the future is cloud computing. A vast grid of interlocking technology enables and encourages businesses to interact with their suppliers, employees, and customers. Cloud computing may be the technology that helps the economy get back on its feet and return to the former state that it once existed in.
Kristin Schneider
Cloud computing enables cost savings, because companies can access technology on-demand and simply pay for only what they use. Cloud computing is paving the way for the “loosely coupled” company, which is a company that stands fine on its own, but when it is linked with other systems the like, is when the magic happens. Cloud computing is blurring the distinction between the vendors who provide the technology and products, and the customers who purchased and used them. Also, the start up costs is very cheap. Cloud computing may be the boom our economy needs to instill entrepreneurial spirit; no need to go through corporate finance and IT approvals to design products. This idea also opens up the market to all firms, large or small, enabling them to sell services or apps. Lastly, cloud computing is a form of micro-outsourcing; companies from around the globe can quickly tap into services needed, when they are needed. Once again, this idea is providing a gateway for entrepreneurial-like people, or startups. To sum it up, Cloud Computing saves businesses money, increases productivity, reduces risks, increases flexibility, and transfers what were fixed costs to variable costs. The Cloud is absolutely the future home of computing power.
Jillian K
1) Which of the following is NOT a benefit of Cloud Computing?
a) Increased security of information
b) Increased accessibility to information
c) Decreased start up costs for companies
d) Retention of information should a computer’s physical hard drive crash.
answer: a
2) An entity that stands fine on its own, but become increasingly efficient and productive when paired with other systems is defined as ______.
a) encryption
b) loosely coupled
c) highly cohesive
d) ameliorate services
answer: b
Ivette
1)In reference to the Wiley IS Weekly Update article “Cloud Computing May be a Shot in the Arm our Economy Needs”, which of the following statements is NOT true:
a) Non-IT companies are becoming cloud providers
b) Cloud computing may finally mean a way for IT to finally become a profit center
c) Cloud computing increases start-up costs
d) Cloud computing is essentially is a form of micro-outsourcing
Answer: c
2) In reference to the Wiley IS Weekly Update article “Cloud Computing May be a Shot in the Arm our Economy Needs”, cloud computing is considered revolutionary because:
a) It is cost- efficient
b) It opens up new lines of business in IT and information delivery
c) It changes the mode of technology delivery
d) It gives new opportunities to the highly demanded IT professionals
Answer: b
Jenn L
1) In reference to the Wiley IS Weekly Update article “Cloud Computing May be a Shot in the Arm our Economy Needs”, a businesses that doesn’t actually produce actual goods or services themselves, but instead acts as brokers or intermediaries relying on networks of suppliers and partners are called__________.
1. Empty corporation
2. Hollow corporation
3. Ghost corporation
4. Middle men
Answer: 2
2) In reference to the Wiley IS Weekly Update article “Cloud Computing May be a Shot in the Arm our Economy Needs”, which of the following is NOT a way that cloud computing is altering the business landscape:
1. Rise of “micro-outsourcing”
2. More software innovation
3. Startups on a dime
4.Loss of jobs
Answer: 4