broadband strategies handbook.pdf - Khazar University

isks associated with cloud computing services. 6 About 85 percent of respondentsstated that their organization would be using cloud computing toolson a moderate or extensive basis over the next three years in order to takeadvantage of the benefits of cloud computing, including improved speedand flexibility of doing business, lower costs, and new avenues for growth,innovation, and collaboration. Only 7 percent of respondents stated thattheir business had been using cloud computing for over five years; theseearly adopters reported that real business value had already been created,including faster time to market, lower operating costs, and easier integrationof new operations.In addition, cloud computing itself can give rise to new business modelsand create new avenues for generating revenue. For example, Amazon, thelargest U.S. online retailer, began offering cloud computing services to businessesand individuals in 2002 because the company had excess computingand storage capacity (Carr 2008, 74–75). In order to accommodate the busiestshopping week of the year in the United States, Amazon had to purchasea much larger amount of capacity than was required the rest of the year.Rather than let the extra capacity go unutilized, Amazon began renting itssystem to others, thereby becoming a “utility” for computing services.Despite the promise of cloud computing as a source of substantial costsavings for enterprises, various issues may limit its impact, particularly lackof access to broadband services. Cloud computing requires access to fast,reliable, and affordable broadband in order to achieve the maximum benefits.In addition, cloud computing raises potential network and data securityconcerns as well as significant concerns about reliability of the technology,lack of interoperability with existing IT systems, and lack of control over thesystem.Retail and Services Sectors: Improving Customer RelationsParticularly for the retail and services sectors where customer relationsaverage 50 percent of a company’s activities, broadband can improve theability to reach new customers and maintain contact with existing customers.As such, the ability to send multimedia e-mail or use targeted onlineadvertising to keep and attract customers can increase a company’s sales,while using less capital and fewer labor inputs than would be required forpostal mailings or door-to-door sales calls. Broadband also enables selfservicewebsites, such as online airline reservations or e-government services,as well as remote services, such as online technical support and videoconferencing. For example, broadband is essential for developing countries,particularly India, Mauritius, and China, which are the main off-shore destinationsfor IT technical support and business process outsourcing. 714 Broadband Strategies Handbook