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.Â
The onslaught ofÂ CloudÂ has dramatically shifted the way IT expenditures are managed and that has far reaching implications.Â CloudÂ is a global game changer and the race is on forÂ solution providersÂ to provideÂ cloudÂ infrastructure solutions, and forÂ companiesÂ to move theirÂ IT solutionsÂ intoÂ Cloud!
CloudÂ 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 –Â known simply asÂ Cloud!Â
CloudÂ is simple terminology for someone else handling all theÂ pricey on-premise infrastructureÂ headaches, while you only pay for what you use. In the past, tech managers worried about knowing the physical location of their infrastructure, but withÂ CloudÂ thereâs not really much need.Â
As an engineer and friend of mine used to say,Â âWith Cloud you donât really know where your stuff is, nor should you care.â
It is like going to a bank and making a cash deposit.Â Most people don’t worry about where the Bank hoards theirÂ physical cash, as long as when they go to anÂ ATMÂ they get access to theirÂ money.Â Compute servicesÂ on theÂ CloudÂ operate much the same way, andÂ accessibilityÂ is the key ingredient in thisÂ always-on, always-availableÂ world we consume!
So, how isÂ CloudÂ a global game changer and what are theÂ business,Â economic,Â social, andÂ politicalÂ effects?
In businessÂ CloudÂ shifts traditional models of financing IT expenditures by replacing capital expenditures with operational expenditures.Â Corporate spendÂ 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 theirÂ infrastructure project buildsÂ are going and disable unnecessaryÂ services.Â AsÂ servicesÂ are removed andÂ virtual equipmentÂ isÂ turned downÂ in theÂ Cloud, those associated monthly expenditures are removed.Â Â Additionally, when it comes time to scale your solution asÂ economies of scaleÂ grow, there is no need for additional large capital expenditures to procure additionalÂ physical expansion hardware.Â So, you can forgo another costly project expense by easily scaling in theÂ Cloud.Â Simply stated, this shift fromÂ CAPEXÂ toÂ OPEXÂ 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.Â Simply stated, companies without previous access to large capital investment, can now easily enter the market.Â
Cloud computing affects demographics.Â By virtue of itâs location independence it leads to increases in off-shoring.Â Without the need to be geographically present to manage physical infrastructure, allows people to work from anywhere.Â Â
Any force that has significant impact across society and the economy will eventually be subject to political regulation.
As you can see, the implications ofÂ CloudÂ are monumental, a true planet disruptor.Â Iâm certain we havenât even scratched the surface in terms of the change that will unfold as companies adopt this new modality for doing business and IT.Â Â
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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 Fatherâs 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 âelectronic pigâ machinery that was used to test pipelines for metal fractures. I am eternally grateful for these early experiences.Â
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 âAlways On, Always Availableâ 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.Â
When Iâm not working youâll find meÂ freediving and exploring the beautiful and tranquil reefs along the coastline.Â Iâll be in heaven when submersible laptops become commonplace!Â