Cloud computing is a model that allows organizations to share resources such as networks, servers, storage, applications. Suppliers provide these services quickly and with minimal effort.
Organizations have changed the way they shop computing resources with Cloud services. Companies decrease their operating costs by purchasing technology resources on demand.
Cloud services include environments for application development, access to advanced technologies as well as software and IT staff with great experience that should otherwise be costly and difficult to support. Companies lower capital spending level of IT as well as operation and maintenance costs. Companies redirect resources to core business activities as a tactic to gain a competitive advantage.
However, despite these advantages, organizations face obstacles to start cloud services such as, reduced vision in business and technology and data security. Also, there is a lack of understanding between the business and the supplier about the duration, scope and implementation of services.
The level of IT investment could be lost or not applied in an optimized way. Companies cannot fully exploit the benefits or competitive advantages of cloud computing.
It is necessary to show the factors that influence a successful implementation of the cloud, allowing the company to distinguish itself from competitors:
• Establish a trusting relationship with the supplier of technology.
• Businesses must focus on their core competencies when carrying out a cloud solution.
• Business must invest in managerial and technical capabilities.
The cloud deployed give a technical and economic benefit. The company achieves benefits with a successful deployment. Valuable benefits are a source of differentiation and competitive advantage.
Three benefits categories describe the success in Information Technology: tactics, economic and technological. The tactic advantage relates to the organization turns attention to business activities while IT functions hosted and managed by a cloud provider.
In economic terms, the companies draw on cloud provider expertise and technological resources and cut internal IT costs. Finally, about technological benefit, the company starts a new technology and access to qualified staff, eliminating the risk and some of the costs of developing the technology at home.
Cloud computing is an IT service, where a supplier provides and maintains the software and hardware infrastructure. The organization's ability to integrate and use these services determine the benefits achieved.
The capabilities of the company to start, integrate and use cloud services play an important role in the results. These capabilities are technical, managerial and relational.
The Technical capacity is the physical assets, such as computers, network equipment and databases, or collective resources that deliver functionality, flexibility and scalability to companies. It means being able to respond quickly to technological changes in the business, and not delay technologies begin.
The technical capabilities represent competitive advantages in the use of computing resources in the cloud. With these capabilities, cloud computing produces streamlined business processes that distinguish the company from competitors.
Moreover, the likelihood that an organization implements a new system successfully depends from their manager's ability to manage implementation projects.
Management capabilities include business and technical skills as well as the organization, the experience necessary to recognize the potential of new technologies and their role in the company performance.
Having higher levels of management experience improves the efficiency of technology integration into existing business processes. Companies with highly skilled IT managers or technical and business skills set up cloud solutions integrated into the business strategy.
Management function includes the organizational knowledge, manage the needs of the market and understand how new technologies work to increase business performance. A good IT manager could exploit the advantages of cloud computing across business units, to improve the overall performance of the business.
Relational abilities show the positive association between the IT manager and the cloud provider, where the provider must have a clear understanding of how cloud services help the client organization. The company would be clear that the cloud provider is working to assist in the use of IT resources. Organizations looking to build strong, trusting relationships, are more successful in their efforts to work with tactics partners.
Since a trust is a key part in the relations between companies, this relational capacity plays an important role in carrying out the cloud. While the link between the company and the cloud provider is stronger, more intangible is the value derived, making it more difficult for competitors to imitate and compete.
The confidence determines the success in the implementation. Collaboration between companies is a key element and a guarantee that the cloud approach held in the interest of the business.
On the other hand, when the company has strong technical and management is more likely to get better results of Information Technology as well as more access to information and essential technologies.
Companies with rigid IT cannot fully start a cloud strategy. Managers, who have no knowledge of the business and how to exploit cloud technologies or to integrate a solution to the business units, impede successful implementation. However, a non-technical and management capacity could make performance improvements and reduce IT costs, but not a competitive advantage.
In conclusion, the services of cloud computing, give IT functionality to small and large organizations, promising to help reduce operating costs and increase business agility. A key to a successful implementation of the cloud, is the customer's business, capabilities and IT management.
A cloud has a high potential, but also the company has to manage risks and complexity. It takes a holistic view to understand the costs, benefits and compensation. It must set up a relationship of trust with the solution provider.
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