The Business, Economic, Political, and Social Implications of Cloud – in 3 Minutes
While it is sometimes difficult to get a full grasp of the economic, political, and social instruments that influence business, it is not particularly difficult to understand the accounting principles that govern IT projects.
The onslaught of Cloud has dramatically shifted the way IT expenditures are managed and that has far reaching implications. Cloud is a global game changer and the race is on for solution providers to provide cloud infrastructure solutions, and for companies to move their IT solutions into Cloud!
Cloud allows large IT projects, formally framed on fixed and pricey on-premise infrastructure, to be maneuvered into an outsourced, dynamic, easily distributed, pay-on-demand, and scalable infrastructure solution – known simply as Cloud!
Cloud is simple terminology for someone else handling all the pricey on-premise infrastructure headaches, while you only pay for what you use. In the past, tech managers worried about knowing the physical location of their infrastructure, but with Cloud there’s not really much need.
As an engineer and friend of mine used to say, “With Cloud you don’t really know where your stuff is, nor should you care.”
It is like going to a bank and making a cash deposit. Most people don’t worry about where the Bank hoards their physical cash, as long as when they go to an ATM they get access to their money. Compute services on the Cloud operate much the same way, and accessibility is the key ingredient in this always-on, always-available world we consume!
So, how is Cloud a global game changer and what are the business, economic, social, and political effects?
In business Cloud shifts traditional models of financing IT expenditures by replacing capital expenditures with operational expenditures. Corporate spend moves from funding large upfront projects (CAPEX), which are too often excessive due to the uncertain technical nature of IT projects, to more manageable monthly costs (OPEX), where leaders can better assess in increments how well their infrastructure project builds are going and disable unnecessary services. As services are removed and virtual equipment is turned down in the Cloud, those associated monthly expenditures are removed. Additionally, when it comes time to scale your solution as economies of scale grow, there is no need for additional large capital expenditures to procure additional physical expansion hardware. So, you can forgo another costly project expense by easily scaling in the Cloud. Simply stated, this shift from CAPEX to OPEX significantly increases financial transparency and reduces costs.
From an economic perspective reducing capital expenditures eliminates entry barriers for many industries which can lead to enhanced startup speed for business, and this allows a larger number of smaller companies to enter the market. Simply stated, companies without previous access to large capital investment, can now easily enter the market.
Cloud computing affects demographics. By virtue of it’s location independence it leads to increases in off-shoring. Without the need to be geographically present to manage physical infrastructure, allows people to work from anywhere.
Any force that has significant impact across society and the economy will eventually be subject to political regulation.
As you can see, the implications of Cloud are monumental, a true planet disruptor. I’m certain we haven’t even scratched the surface in terms of the change that will unfold as companies adopt this new modality for doing business and IT.
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My journey to where I am today has been particularly interesting, consisting of extreme geographic, social & cultural opposites, where my travels started at an early age, as I was whisked from the lush green lands & winding rivers of Wales UK to the hot & arid desserts of Ahvaz Iran. My Father had just moved from nuclear power to servicing critical transportation mediums in oil & gas. Throughout my Father’s career we journeyed across many lands ranging from the Middle East to Europe & finally to N. America, where we managed to live in 6 countries, & visited many others. Along the way I learned about interesting people, scorpions, exotic food & the ‘electronic pig’ machinery that was used to test pipelines for metal fractures. I am eternally grateful for these early experiences.
As an entry-level adult in Texas I quickly realized my calling in the field of Technology while selling limited partnerships in oil & gas ventures. Life was exciting!
Since that time, I have had the great opportunity to embrace Colorado, NYC, & more recently Florida as home, where I have supported a series of large scale initiatives for a number of top organizations.
While I pride myself on my expertise of perfecting processes, creating the best ‘Always On, Always Available’ solutions, & cultivating the amazing teams that support them, I have evolved into much more than that. My passions have moved me into areas of business strategy where I enjoy having discussions about how technology is affecting business, economic, social, & political dependence. My background of extreme geographical, social & cultural diversity allows me to quickly realize emerging markets, & my expertise in technology gives me keen insight to be able to help companies capitalize on those opportunities.
When I’m not working you’ll find me freediving and exploring the beautiful and tranquil reefs along the coastline. I’ll be in heaven when submersible laptops become commonplace!