Cloud computing

Definition

Cloud computing refers to the delivery of computing services, including storage, processing power, and software, over the internet ('the cloud') rather than through local servers or personal devices. This technology enables users to access resources and applications remotely, promoting efficiency, scalability, and flexibility in how businesses operate and interact in the global marketplace.

5 Must Know Facts For Your Next Test

1. Cloud computing allows businesses to reduce costs by eliminating the need for physical hardware and infrastructure maintenance.
2. It promotes collaboration by enabling multiple users to access and work on documents and applications from any location with internet connectivity.
3. Security measures in cloud computing are often managed by the service providers, offering high levels of data protection and backup capabilities.
4. The scalability of cloud computing allows businesses to easily adjust their resource usage according to their needs without significant investments.
5. Cloud computing supports international trade by enabling companies to operate globally with reduced operational barriers and enhanced data accessibility.

Review Questions

• How does cloud computing enhance business operations in the digital economy?
  • Cloud computing enhances business operations in the digital economy by providing on-demand access to a wide range of services, such as storage and applications, without the need for extensive physical infrastructure. This flexibility allows businesses to scale their operations quickly based on market demands. Additionally, remote accessibility enables collaboration among global teams, improving productivity and efficiency while reducing operational costs.
• Evaluate the impact of cloud computing on international trade and global business strategies.
  • Cloud computing significantly impacts international trade by lowering entry barriers for businesses seeking to expand into global markets. Companies can leverage cloud services to establish a presence in multiple countries without the need for local data centers. This accessibility fosters innovation and agility in business strategies, enabling firms to quickly adapt to changing market conditions and customer demands on an international scale.
• Assess how cloud computing could influence economic disparities between developed and developing nations in the context of global trade.
  • Cloud computing has the potential to both bridge and widen economic disparities between developed and developing nations. On one hand, it can empower businesses in developing countries by providing access to advanced technologies that were previously out of reach, fostering growth and participation in global trade. On the other hand, if access to reliable internet services is limited in these regions, it could exacerbate existing inequalities, leaving some countries unable to fully leverage cloud technologies while developed nations advance rapidly in their digital capabilities.

Related terms

SaaS: Software as a Service (SaaS) is a cloud computing model that delivers software applications over the internet on a subscription basis, allowing users to access and use software without needing to install or maintain it locally.

IaaS: Infrastructure as a Service (IaaS) provides virtualized computing resources over the internet, allowing businesses to rent servers, storage, and networking on a pay-as-you-go basis instead of investing in physical hardware.

PaaS: Platform as a Service (PaaS) offers a framework for developers to build, deploy, and manage applications without dealing with the complexities of underlying infrastructure.