Need a perfect paper? Place your first order and save 5% with this code:   SAVE5NOW

Measuring the Business Value of Cloud Computing

Executive summary

This report covers the topic of Measuring the Business Value of Cloud Computing. The report is divided into two tasks. The first one includes the importance of cloud computing from a business perspective. It also includes the development of Cloud computing, the concept and application of cloud computing in a business, and how it is adopted as an effective tool for businesses. The second part of this report includes the relationship between cloud computing and management theories. It also describes how early management emerging management can benefit from adopting Cloud computing for business practices. Some theories, such as contingency theory, quantitative theory, decision-making theory and human relation theory, are discussed and illustrate the impacts of cloud computing on these.


Cloud computing is the application of remote servers to store and process data. As a result, the term has evolved to encompass an outside entity’s management of both storage facilities and data centres. Cloud computing describes the implementation of shared networked computing capabilities, such as storage of information (cloud storage) and processing power made available on demand but not directly managed by the user (Lynn et al., 2020). With cloud computing, companies can utilise their data from anywhere at any time, facilitating a more flexible and global data collection strategy. The value of cloud computing to corporations is detailed in the present study. One advantage of cloud computing is time savings, as services may be set up and made available in minutes rather than the several weeks or years it would take using conventional approaches (Weinman, 2013). The efficiency, progress, and applications of this technology are also included. The paper concludes with a discussion of management theory and how it relates to the prevalence of digital technology in business.

Task 1

The significance of cloud computing for business organisations

The cloud platform’s increased versatility, mobility, and long-term sustainability comprise some essential benefits of cloud-based solutions. Companies that store valuable information should always have a well-planned backup mechanism. Addressing the importance of cloud computing in organisations necessitates investigating how cloud storage could aid businesses in their continual search for growth (Lynn et al., 2020). Companies with an antiquated IT architecture may struggle to grow and adapt to shifting market demands in today’s fast-paced environment. As the business world becomes increasingly technological, organisations incapable of differentiating themselves from the competition will eventually be left in the dust. By providing companies with flexible, immediate accessibility to technology, a cloud-based system is crucial for expanding a company’s operational strengths and needs to be provided from a digital perspective. Google Cloud constructed a sophisticated management console using tools from several various technological service providers (Tallon, 2020). More responsibility will be taken, and the most important circumstances and environmental areas will be preserved due to business distribution system improvements and a more accurate approach to emphasising expansion.

Development of Cloud-Computing

Time-sharing, or RJE (Remote Job Entry), as frequently identified in the 1960s, was primarily connected with major companies like IBM and DEC. Employees had complete options with architectures like Multics as early as the early 1970s. IT companies, formerly predominantly provided dedicated point-to-point connection settings, were the initial ones to launch virtual private network (VPN) services in the 1990s (Dillon et al., 2014). Businesses might make better use of available internet bandwidth by rerouting traffic as necessary to handle server load. OpenStack began operation in July 2010 as a joint effort between Rackspace Hosting and NASA to provide open-source cloud computing. This open-source initiative is meant to help businesses that offer cloud-based services using industry-standard tools (Zhang et al., 2015). Cloud services, commonly referred to as solutions for IT, are OpenStack programmes or applications that can be implemented to operate entirely in the cloud.

The Concept and Practical Application of Cloud Computing

One definition of “cloud computing” is the technique of making many services widely available over the web. Databases, platforms, and collaborative efforts are only some of the accessible approaches and capabilities. In applications that utilise clouds, data is stored on a remote server, or “cloud,” accessible over the Internet (Rittinghouse & Ransome). Users can write code and save data in remote locations using these companies’ services, then download the results later. Because of this, the client is not limited to a single location and can do business from any suitable spot. Implementing a centralised server to store and analyse data minimises businesses’ need to invest in expensive data analysis and interpretation hardware. Several of these procedures are dispatched into cyberspace, where hulking mainframes process them. The company’s vast workstation systems are located thousands of kilometres distant in cyberspace, where they perform various activities. It’s a common place for things like big data, analytics, IaaS, data backups, Recovery plans, and more to be stored (Lynn et al., 2020).

Technological platforms and software are used in Cloud-Computing.

Businesses that provide services or use technology that is hosted in the cloud are expanding rapidly. All of today’s cutting-edge technologies require a great deal of computing power, from big data processing to the Internet of Things to computerisation to repairing and maintaining applications for linked items. With the advent of cloud computing and services provided by cloud platforms, companies now possess the opportunity to build out their services and network infrastructure without having to do so in-house. Google’s cloud services are called Google Cloud Platform (GCP) (Malik et al., 2018). It’s useful for people and companies in IT, networking, managing information, machine learning (ML), and the Internet of Things (IoT). There are further features for managing and administering the cloud. ThMicrosoft’s Azure powers their cloud infrastructureThis solution gives Microsoft devotees the option of trusting that the information they hold is secure and confidential within Microsoft-managed networks. IBM’s Bluemix cloud computing system has a platform as a service (PaaS) and advances in technology as a service (TaaS) model. Businesses may employ Bluemix IaaS to build and purchase simulated computing, storage, and network equipment over the Internet (Shawish & Salama, 2016). In today’s fast-paced world, virtually every industry is reaping the positive aspects of cloud computing. This includes the academic and medical communities and the monetary banking, hotel, and insurance sectors.

Cloud computing as a business tool and its effectiveness

Computing on the cloud delivers a more modern response to businesses’ requirements across future periods. By storing data in the cloud, companies can retrieve it from any device linked to the internet. When using cloud computing, information is not stored on a user’s system or a server at a physical location (Gangwar, 2017). Although the software is widely employed in business, consumers are still rather unfamiliar with technology. End users of cloud computing retain the same visibility to all documents and functions as if they were physically present in the office, even though customised software can frequently be deployed on the network used by the business. Time, knowledge, and money are only some of the resources needed to acquire and maintain server hardware. Instead of building a system vulnerable to outages, cloud computing safely stores your company’s information. By moving to the cloud, businesses may decrease the cost of IT infrastructure management. Giant Companies can effectively transform their processes and data transfer requirements to satisfy their evolving requirements and respond to changing circumstances (Alijani et al., 2015). Businesses may collaborate and disseminate information more efficiently inside a platform or a connection structure.

Task 2

How does Cloud-Computing relate to the nature of the relationship between digital technologies and both old and newly emerging theories on business and management structures and practices?

Cloud technology has allowed it feasible for most new industry strategies to work better on a remote computer than on the integrated systems of their industries. Because a lot of internet access and internet connection are available, some of the most widely utilised cloud computing instances are Dropbox,, and Slack, which new businesses have already utilised (Hanelt et al., 2021). Companies that use cloud technology benefit a lot from it. They understand and apply cloud computing to support their businesses outside their countries. With the rise of cloud technology, businesses save time and energy by making it easier for people to work together and encouraging new ideas and inventions. Cloud-based applications have a lot of additional benefits for small and medium-sized businesses that have to cope with the growth of the company’s administration and operations.

Businesses are progressing toward this goal using their information centres and cloud tools. Their information is concentrated on social intelligence, engaging communication centres, and managing customer relationships. By using cloud-based software services in everyday business and management tasks, the company continues to learn more about its customers’ desires and requirements. Interpretation and visualisation methods, as well as computational linguistics, are the methods they employ. With the help of different tools and pieces of information, businesses continue to be proficient in making more effective marketing campaigns (Oliveira et al., 2016). There is a big difference between how administration was done in the past and how it is done now. The following will cover how early management ideas relate to how cloud-based businesses are run today:

Modern management greatly affects the modern business environment, which is always changing. Academics and investigators have studied company and local business management to get the most out of its processes. Some different tactics and ideas have been deployed for a long time. It’s not uncommon for managers to act similarly at work. Standardising their products and services is a common way for businesses to improve their management approach. The availability of cloud computing has made it easier and more open for businesses to improve their management practices and help them progress. Some of the early ideas about how to run a business are:

Contingency Theory

According to this idea, one individual certainly cannot utilise all of the best approaches to leadership. There’s a chance that something that functions well in one situation might not work well in another. Some things that influence the capability of an organisation to move forward are the qualities of managers and employees and the expertise that they require to arrive at good decisions (Korzynski et al., 2023). Managers are now connected to more detailed and accurate data than they did previously. Making use of cloud-based technologies like smartphones, private computing devices, and so on, they have expanded and transformed. These will assist enterprises in generating more informed decisions while identifying satisfactory solutions to management issues and other difficulties as they come up.

Decision-Making Theory

In today’s competitive marketplace for business, it’s tough for managers to get a lot of information from various reliable sources. Because of this, it’s necessary to keep up with emerging innovations, communicate with national and international networks, and take advantage of cloud-based technology (Korzynski et al., 2023). These make it simpler for company executives to make decisions and save time. They also speed up the distribution of information. In the past, decisions were made based on handwritten records. These days, all decisions are made using the cloud.

Quantitative Theory

The strategic plan of the management division uses statistical methods like simulation strategies and statistical programs to implement a quantitative viewpoint. By using this method, businesses are perceived as entities that make decisions. Decision-making processes can effectively use statistical frameworks that consider important factors and use quantitative terms (Rufo, 2017). In management, statistics and mathematical concepts are also used in cloud-based technology for transforming sophisticated procedures, systems, or connections into mathematical models for linear regression and algorithms.

Human Relation Theory

The approach to management puts a lot of importance on how individuals perform and how committed they are to the enterprise, as well as their links, how they work in groups, and how they organise. These are all important factors in determining the achievement of the organisation. From a humanistic point of view, appreciated, interactive, and engaged supervisors are seen as far more successful than dictatorial structures. In the business world of today, which is very competitive, cloud-based tools like have made things simpler to stay in touch with upper management and workers (Ratana et al., 2020). Managers are receiving more and more ways to improve their leadership styles, and people are satisfied working in a pleasant and collaborative atmosphere.

Businesses are growing slowly and struggling with difficulties in a changing market. The method administrators applied to run their businesses in the past decades is currently being supplanted by digital technology. Today’s managers in businesses get insights from early management theories and substitute them with an improved basis of information and comprehension that rapidly facilitates business progress.


Considering the information presented here, it’s realistic to accept that upper management has a greater opportunity than ever before to make plans for the company’s future. Many sectors of the IT business, such as software developers and ISPs, will be impacted by the rise of cloud computing. Cloud computing facilitates the distribution of goods by relieving businesses of the costs of maintaining and upgrading server infrastructure. Because of the flexibility afforded by Cloud-Computing and other IT technology, it has been capable of quickly adjusting to shifts in market demand, consumer preferences, production methods, and more (Lynn et al., 2020). Management by agile principles is one of the many up-and-coming management philosophies that has been encouraged by cloud computing. Through cloud computing, businesses have been able to more easily implement simplified and productive procedures, hence decreasing the need for complicated administrative processes and freeing up greater authority to make decisions at lower levels within the organisation.


Alijani, G. S., Fulk, H. K., Omar, A., & Tulsi, R. (2015). Cloud computing effects on small business. The Entrepreneurial Executive, 19, 35.

Dillon, T., Wu, C., & Chang, E. (2014, April). Cloud computing: issues and challenges. In 2010 24th IEEE international conference on advanced information networking and Applications (pp. 27–33). Ieee.

Gangwar, H. (2017). Cloud computing usage and its effect on organisational performance. Human systems management, 36(1), 13–26.

Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organisational change. Journal of Management Studies, 58(5), 1159-1197.

Korzynski, P., Mazurek, G., Altmann, A., Ejdys, J., Kazlauskaite, R., Paliszkiewicz, J., … & Ziemba, E. (2023). Generative artificial intelligence as a new context for management theories: analysis of ChatGPT. Central European Management Journal.

Lynn, T., Mooney, J. G., Rosati, P., & Fox, G. (2020). Measuring the business value of cloud computing (p. 125). Springer Nature.

Lynn, T., Rosati, P., & Fox, G. (2020). Measuring the Business Value of Cloud Computing: Emerging Paradigms and Future Directions for Research. Measuring the Business Value of Cloud Computing, p. 107.

Malik, M. I., Wani, S. H., & Rashid, A. (2018). CLOUD COMPUTING-TECHNOLOGIES. International Journal of Advanced Research in Computer Science, 9(2).

Oliveira, T., Thomas, M., & Espadanal, M. (2016). Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors. Information & Management, 51(5), 497-510.


Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud computing: implementation, management, and security. CRC press.

Rufo, R. Z. (2017). Use of change management theories in gaining acceptance of telemedicine technology. Critical care nursing quarterly, 35(4), 322–327.

Shawish, A., & Salama, M. (2016). Cloud computing: paradigms and technologies. In Inter-cooperative collective intelligence: Techniques and applications (pp. 39-67). Berlin, Heidelberg: Springer Berlin Heidelberg.

Tallon, P. P., Mooney, J. G., & Duddek, M. (2020). Measuring the business value of it. Measuring the Business Value of Cloud Computing, pp. 1–17.

Weinman, J. (2013). Cloudonomics: The business value of cloud computing. John Wiley & Sons.

Zhang, S., Zhang, S., Chen, X., & Huo, X. (2015, January). Cloud computing research and development trend. In 2010 Second international conference on future networks (pp. 93–97). IEEE.


Don't have time to write this essay on your own?
Use our essay writing service and save your time. We guarantee high quality, on-time delivery and 100% confidentiality. All our papers are written from scratch according to your instructions and are plagiarism free.
Place an order

Cite This Work

To export a reference to this article please select a referencing style below:

Copy to clipboard
Copy to clipboard
Copy to clipboard
Copy to clipboard
Copy to clipboard
Copy to clipboard
Copy to clipboard
Copy to clipboard
Need a plagiarism free essay written by an educator?
Order it today

Popular Essay Topics