The Economic Impact of Cloud Computing Adoption in Six ASEAN countries, India and China

877 Words Feb 3rd, 2018 4 Pages
It is a new paradigm for storing data and accessing information and applications which are offered as on-demand services over the Internet infrastructure. It provides new possibilities for business firms as well as governments. In particular, organizations that adopt cloud computing services are expected to gain cost benefits from reduced up-front IT investment, maintenance and lower energy cost (Bose and Luo, 2011); while for the industry as whole, it will benefit from increasing economies of scale and reduction of unutilized capacity (Haag and Eckhardt, 2014). Further cloud computing offers opportunities for innovation realized through lowering entry and expansion cost for firms, especially small and medium enterprises; access high quality services, and fast deployment of product and services. Additional benefits include productivity gains particularly resources efficiency, flexibility and on-demand scalability (Armbrust et al. 2010) as firms concentrate on their core business while accessing high IT quality services from the cloud vendors.
It has been established in the literature that the use of IT increases productivity and output of economies (Duggal et al., 2007, Hawash and Lang, 2010). Likewise, the adoption of cloud computing is expected to further impact existing and new businesses, which will…