Cloud computing has emerged as a revolutionary paradigm through which organizations can optimize their Information and Communication Technology (ICT) investments. In cloud computing, ICT resource requirement can be adjusted easily and quickly in response to changes in demand. It is a scalable virtualized development platform that has the potential to provide pay-per-use services to customers over the Internet/network by deploying hardware and software resources. In this paper, the evolution of cloud computing is traced in 10 phases, starting from the development of calculating machine in 1623. An ICT model for cloud computing has been presented. In order to leverage the benefits of cloud computing successfully, a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of cloud computing is carried out. The paper also presents the details of cloud computing innovative applications in various organizations. Lastly, a hybrid cloud computing model for Small and Medium Enterprises (SMEs) operating in the developing countries is proposed. The results obtained for the hybrid cloud model demonstrated the feasibility of the model. It appears that the research base in cloud computing and hybrid model in particular is strong and possesses potential to help in the development of effective industrial applications. However, a proper need-benefit analysis should be carried out to hedge the restrictions and challenges faced by cloud computing.

It has been established beyond the shadow of a doubt that ICT has caused tremendous transformation in the way modern businesses are conducted. However, development of ICT software and hardware platforms is a capital-intensive process. ICT investment does not always lead to equivalent monetary rewards. According to Al-Shehab et al. (2005), ICT investment is high-risk, and reports of failed project implementations or limited project returns are not uncommon. Hence, organizations should carefully evaluate their ICT investments (Todorova, 2006). Cloud computing is a revolutionary paradigm through which organizations can optimize their ICT investments.

According to the concept of cloud computing, instead of purchasing hardware or software, a user purchases remote access via the Internet. It is an emerging computing paradigm where data and services reside massively in scalable datacenters that can be ubiquitously accessed from any connected device over the Internet. It is a serviceoriented business/software/hardware platform on the Internet, rather than a specific identifiable device that aims to deliver supercomputing power over the Internet. It can help businesses in transforming their existing server infrastructures into dynamic environments, thereby expanding and reducing server capacity. It can be any subscription-based or pay-per-use service that in real time extends ICT existing capabilities over the Internet. Therefore, organizations can purchase resources on need basis and save capital cost of hardware and software. Moreover, in cloud computing, ICT resource requirements can be adjusted easily and quickly in response to changes in the demand.

Computer Sciences Journal, Cloud computing, ICT, SWOT analysis.