THE UTILITY OF CLOUD COMPUTING AS A NEW PRICING – AND CONSUMPTION - MODEL FOR INFORMATION TECHNOLOGY 

David C. Wyld1 

Department of Management, Southeastern Louisiana University, Hammond, LA USA

ABSTRACT

This paper provides the reader with a look at the cloud computing concept and its likely impact on information technology. It begins with a look at how cloud computing has rapidly evolved, examining what cloud computing is – and is not, seeing how the cloud has quickly taken hold as part of our everyday lives and how it is poised to become a major part of IT strategies for all organizations. We examine the notion of computing being “on demand,” following in line with other services, such as electricity and telephony, that have become “utilities.” We then examine how cloud computing challenges traditional models for pricing and procuring information technology. In the conclusion, we look at how the cloud model will ultimately serve to transform – in a big way – the information technology industry, as the shift from procuring IT “stuff” to buying IT services will be transformational across the landscape.

KEYWORDS 

Cloud computing, Information technology, Utility, Procurement, Pricing, Strategy

Pdf URL: https://airccse.org/journal/ijdms/1011s1.pdf

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