Another advantage of cloud computing is that it is environment friendly and enables the businesses to run smoothly. Cloud computing is considered as a system for storing data and it is seen as multifaceted ecosystem (Latorre, at al. , 2003; Saviotti and Pyka, 2004; Abdulmalek and Rajgopal, 2007). The main idea behind the system of cloud computing is interconnectivity of a large number of devices through a securely accessed network. Cloud computing has brought in changes in traditional business model and the businesses have hired new IT professional in SMEs’ so as to run the computer hardware and software.
Cloud computing has been used by the SME’s in order to develop the business in the global market. The research aims at studying the importance of cloud computing in the global market and the change that it has brought to the SME’s and the changes in the business model. The objectives for the research to be carried out are as follows: According to McFarland, Reilly and Herzog, (2004) Cloud computing is considered as a game changer in business activities and brings in technological innovation. It has the power to shift the competitive landscape by providing a new platform for the creation of a business value (McFarland, Reilly and Herzog, 2004; Castellacci, 2008; Wiedmann, 2009).
Cloud computing has been suitable for the consumers who use it on a daily basis so as to have a competitive advantage within the business. Visser, (2002) argued that the social connectivity and the technology that has been brought within the organization have created opportunities for the development of new business models. The organizations use cloud in order to affect the value chains and there are three business archetypes who have been identified as using cloud for various purposes (Visser, 2002; Simonazzi, 2009; Teece, 2010).
The optimizers use the cloud to enhance the customer value proposition in order to improve the efficiency of the organization. Innovators improve the customer value through the adoption of cloud that results in new revenue systems within the industry. The disruptors rely on the cloud to create different value proposition in order to generate the customer needs in the global market. The demands of the customers would increase the production level within the organization and thus raise the sales (Visser, 2002; Simonazzi, 2009;
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