IT capabilities transformation of cloud computing Essay

IT capabilities transformation of cloud computing - Essay Example Established organizations have strategic vision that drive their future direction offer guidance toward business strategies, which in turn drive the IT strategy useful in developing the enterprise architecture. This offers an organizing principle, which aligns the mission of the enterprise with its IT strategy and implementation plans. Cost flexibility and IT scalability in cloud computing Business organizations large and small all over the globe and in almost all industries embrace cloud computing as a means of reducing the difficulty and costs linked to conventional IT approaches. Cost flexibility is an essential reason many companies value adoption of cloud computing because cloud environment has the ability to decrease fixed IT costs and shift to variable cost structure. Cloud computing enable organizations to decrease fixed IT costs because it allows shift from expenses on resources to operational expenses. Capital expense in IT that often involves enterprise software licenses, servers and expensive networking equipment that are less fluid and hard to forecast compared to IT operating costs associated cloud computing. Therefore, cloud computing applications make the conventional hardware, software installation and dedicated software license fees redundant because cloud services allow an organization to shift costs from capital to operational costs. By adopting cloud environment, organizations pay only for what the organizations need when necessary; hence, this pay per use offer great flexibility and eradicates the desire for significant IT capital expenditure. Cost flexibility is an appealing attribute of cloud computing because apart from cost flexibility, cloud computing offer firms access to tool and computing power that would normally be affordable to large companies (Berman, et al, n.d). IT scalability is acknowledged as major benefit associated with cloud adoption; but for organizations, cloud offers more than mere IT scalability because it allows or ganizations to scale business operations as well. By offering quick provisioning of IT key resources with no scale restrictions, cloud computing enables organizations to gain from economies of scale without accomplishing large volumes of vital resources on their own. Apart from business scalability and cost flexibility offered by cloud, cloud computing also provides the advantage of masking complexity. Cloud computing provides businesses a means of hiding some complexities of their operation, which is helpful in attracting a broad scope of consumers. Since cloud computing veils complexity from end users, a company is able to expand product and service sophistication without increasing the level of knowledge within user regarding use or maintenance of the product or service. Convergence of enterprise architecture and cloud computing has enabled a shift from monolithic systems to multitier architecture. As service-orientation concepts become pervasive and popular, IT in enterprises fu lly embraces them in order to be flexible in its operations, offerings and outlook. With massive adoption of cloud computing, enterprises are changing themselves into on-demand, instant-on, lean and adaptive organizations. Cloud computing being an enterprise-class technology naturally merges and mingles with enterprise