Cloud computing and economic growth

Abstract

Cloud computing, is a rapidly evolving type of internet-based computing model that relies on sharing computing resources, rather than having local servers or personnel to handle them. It has already been adopted by a significant number of Small and Medium Enterprises (SMEs) as a business advantage able to improve their business environment and help them be more efficient and productive. Due to its beneficial characteristics, as flexibility of cost and scalability, cloud computing has the potential to transform the global ICT market techniques and contribute to the boost of economic growth. The provision of cloud computing services is a new and very promising business model and cloud service providers are already enjoying growing profits.This paper seeks to highlight the economic benefits of cloud computing adoption, its impact on the economic growth of a country, and to explore its diffusion using evidence from the European area. Another main objective is the demonstration of the economic benefits an SME can achieve by adopting cloud services instead of proprietary infrastructures. A case study of a new company entering the market is considered and the corresponding calculations are based on a software tool developed by our research team for the calculation of the total cost of ownership (TCO). Results, will reveal the economic benefits of the cloud and its contribution to the economic growth.

Analysis of the Impact of Digital Technologies on Chinese Economic Growth

“…Clouds computing also boost job creation and entrepreneurship since new firms are created in the field due to the idea that the cloud industry generates high profits for cloud providers (Konstantinos, Katsantonis & Mitropoulou, Persefoni & Filiopoulou, Evangelia & Michalakelis, Christos & Nikolaidou, Mara, 2015). In contrast there are worries about the fact that cloud computing could lead to the limitation of employment or suppression of existing job Azarnik A, Shayan J, Alizadeh M, Karamizadeh S.2012)…”

A Framework for Calculating Total Cost of Ownership of Information Systems

“…Bu çalışmaların, araştırma soruları doğrultusunda incelenmesiyle sistematik haritalama çalışması yapılmış ve sonuçlar sunulmuştur. Bu sonuçlardan birisi olarak bilgi sistemlerinin TSOM'si üzerine yapılan çalışmaların ana amaçları üç başlık altında toplanmıştır [17] [19], [20], [21], [22] iken bir tanesi Microsoft Excel üzerinde çalışan Tablo 1. TSOM hesaplaması konusunda literatürdeki çalışmalar hakkında genel bilgi (An overview of the studies about TCO calculation in the literature)…”

Analysis of pricing strategies of infrastructure as a service (IaaS)

“…Calculation of the Total Cost of Ownership for a business that owns proprietary equipment and its comparison with the TCO of business that migrates into the cloud. (Konstantinos et al, 2015) c. Construction of a price Index for Infrastructure as a Service (IaaS) cloud computing services, based on the hedonic pricing method developing variations that consider both functional and non-functional attributes (Mitropoulou et al, 2016.…”

“…CAPEX and OPEX contribute to the calculation of the Total Cost of Ownership (TCO). It is based on a detailed methodology that includes all suitable parameters as inputs and estimates the TCO and the initial investment of an ICT infrastructure (Konstantinos et al, 2015). Outputs that are related to the investment were calculated, taking into consideration the aforementioned inputs.…”

“…The specific case study, as presented in (Konstantinos et al, 2015), assumes that HuaNews will create 50 job opportunities including administrators and management staff, journalist, reporters. The business needs IT equipment that will provide the following services:…”