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What Is Cloud Computing? Essay

1534 words - 7 pages

The world today is becoming more technologically advanced. Internet use is becoming a more integral part of businesses today. A new way that businesses have started to utilize the internet as a business tool is through cloud computing. “Cloud computing is a model for enabling ubiquitous, 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” (NIST, 2011). This network provides a business with the ability to have a common remote third party connection which they can perform all necessary accounting work. All accounting work that is processed and completed on the cloud is referred to as cloud accounting. The reason businesses use the cloud is to store and organize information that a company obtains to place in a common location. It can be related to a file cabinet that can be accessed from anywhere connected to the internet.
The origins of cloud computing dates back to the 1960s around the time computers were introduced. It was unknown specifically what cloud computing was until 1997 where Ramnath Chellappa, information systems professor, used the term “cloud computing” and placed a definition behind it (Cantu, 2011). After the introduction of what cloud computing does companies began switching to using these services to benefit their own company. Statistically, “in 2009, revenue for cloud services was just over 58.6 billion” (Cantu, 2011). The growth of cloud services is capturing more of the market where in 2011 cloud computing accounting is opening up on the global market at 2.3% with plenty of room to grow (Cantu, 2011).
In recent years, the use of cloud accounting has drastically grown and continues to grow. A benchmark statistic from Cloud Solutions Best Practices: 2013 Benchmark Study states: “The rate of growth in cloud adoptions continues to accelerate, increasing over 43% in the last year to nearly 75%” (CAI, 2013). More and more businesses are switching over to using cloud computing and utilizing cloud accounting. The reason for this switch and the 32 percent increase from 2012 to 2013 is because of the consistent benefits that are continuing to outweigh the concerns. A few of the top benefits that the cloud offers are how simple the software is to manage, how much of a reduction in capital and operating costs there are and the improved service levels it can provide. The adoption on the cloud proves to be a cost efficient transition and makes for a more manageable business. Some of the top concerns that keep businesses away from switching to the cloud are security concerns and integration challenges with other applications. The concerns that prevent the adoption of the cloud relate toward businesses wanting to stay conservative dealing with everyday transactions.
Having a business that can be managed from anywhere with internet access is the convenience a company needs. One of the top...

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