CloudComputing

Cloud Computing is not a technology fad, rather it is a business model.  The model suggests a pioneering approach for the usage of IT - infrastructure and applications by a customer on utility basis i.e. pay per use.

On a preliminary glance the business model looks commercially attractive. It allows customers avoiding any upfront IT capital expenditure and thus reducing barriers of entry for entrepreneurs. It also fosters scaling-elasticity by meeting on-demand needs dynamically. Hence the candidate customers for such a business model pertain to SME segment.

However, there is a selling point for larger enterprises too, i.e., it helps enterprises operationalize their IT expenditure while bringing in business agility.

While the business model offers different options like Infrastructure as a Service, Platform as a Service and Software as a Service; so far the adoption rate is quite minimal barring few success stories like Amazon, Salesforce.com.

The primary reason for this slow adoption is the question about which business process or business data class can reside in the cloud without any risk around data integrity and security. While small business is protective about its data class within its business operation, large enterprise is caught up with internal bureaucracy in identifying potential operational data class.

Hence we see few enterprises are ready to slaughter butterflies in their stomach and harness the ride of possible opportunity. In fact, larger the enterprise, more it remains as a discussion or debate topic among executives.