The question on a lot of people’s mind is why cloud computing is important to businesses.  Cloud computing allows companies to focus on what is core to their business.  It reduces cost, complexity and the multitude of difficult IT matters that do not contribute to strategy execution.

We are witnessing a shift from software as a product to software as a service (SaaS) and from ownership to access being key in business software.  These transitions, as well as the consumerization of IT for the enterprise, are driving factors in the rapid adoption of cloud computing.  The consumerization of IT is evident by the impact of the Android and iPad, which have made consumers used to consuming data and content in an easy format.  As consumers who are accustomed to the capabilities provided by mobile devices and an app store, we are expecting the same technologies at work.

Another influential factor is the recession, which forced many businesses to significantly tighten their budgets.  Cloud Computing solutions provide exceptional benefits while also reducing costs and the risk for IT.  However, what is arguably more persuasive to businesses is psychological factors.  Businesses are seeking the agility for their enterprise solutions, which cloud provides in numerous ways.

The emergence of cloud computing is changing the world of business.  Cloud computing capabilities have allowed for high-performance infrastructures to be available on mobile devices, earning widespread adoption.  There is also much more access to the internet and overall bandwidth, private or public, which is a primary driver of cloud computing. Cloud computing has also enabled more efficient and effective business processes.  For example, current in-memory computing technology has driven down transaction times from something that might have taken 45 minutes to six seconds.

For the full interview, watch the video Why Cloud Matters or read the transcript.

Information is gathered from a video by Knowledge@Wharton of an interview with Erik Berggren, vice president of customer results and global research at Success Factors (an SAP company), and Don Huesman, managing director of the Innovation Group at the Wharton School of the University of Pennsylvania discussing the importance of cloud computing.