Strategy and Value
Joe Weinman · 2012
Cloud computing generates value in many ways. Other than reducing costs and business agility, cloud computing can support a broad range of financial, strategic, employee, and customer goals, ranging from revenue growth and internal productivity to employee satisfaction and customer experience improvements. Values of the cloud, such as cost reduction and agility enhancement, may be more or less relevant depending on strategy. Strategy is not decided in a vacuum but is a function of capabilities and competencies relative to the competition, and the global environment: macroeconomic factors, regional growth, regulatory and legal constraints, and others. The cloud enhances availability of resources and thus business processes. Revenue growth can be enhanced via the cloud through greater value incorporated into the product or service; greater market penetration through the global reach of the cloud; greater availability through replication of data and application resources; and greater conversion of sales through scalable online channel resources. The cloud can help in the area of community and environmental sustainability by leveraging shared resources rather than wasting owned resources.