Cloud computing can be compared to early proliferation of electricity, where homes,
businesses and towns find it difficult to produce or rely on their source of power.
Hence, they connect to a greater power grid usually supported by power utilities.
With this type of utility connection, there has been tremendous reduction in both
time and cost, and greater access to and more availability of power (Eva, 2010). The
National Institute of Standard and Technology (NIST) defined cloud computing as a
model for enabling convenient, on-demand network access to a shared pool of
configurable computing resources that can be rapidly provisioned and released with
minimal management effort or service provider interaction (Micheal, 2010). With
cloud computing, consumers and businesses use applications without installation and
can access their personal files at any computer with Internet access (Lohr, 2007). This
innovation represents a significant opportunity for service providers and enterprises
(Eva, 2010). The same way homes and businesses rely on power grid, cloud computing
has helped enterprise to save cost, increase flexibility and choice for computing resources
through on-premise infrastructure (Eva, 2010).
There is no doubt today that cloud computing is one of the most enticing technologies
due to its cost-efficiency and flexibility. Richard et al. (2009) reported that about
fourteen (14) largest software companies (by market capitalization today) operate
almost entirely on cloud. Paradigm shift to cloud computing has affected some
subcategories in computer industry. A few among them are Internet Service Providers
(ISPs), hardware manufacturers and to a greater extent, software companies (Harte-
Hanks, 2011). While it will be difficult to predict how Internet companies will be
affected, it is relatively easy to see how the main software and hardware companies
are affected by this shift (Harte-Hanks, 2011).
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