Cloud computing, which originated from the Internet, has now surpassed its initial hype. A few years after being heavily promoted by the media and industry, it became clear that the early pioneers of cloud computing did not necessarily have successful projects. Instead, the concept of "cloud" began to be applied in areas outside the IT sector, such as cloud providers, cloud TV, and cloud antivirus.
This paper argues that the most valuable aspect of cloud computing lies in its business model—on-demand access and pay-as-you-go services. These models are not only disruptive to traditional IT industries but also have the potential to reshape business thinking across various sectors. Most of the technologies and business models currently being promoted are difficult to scale and are far from real cloud computing. There is still a long way to go before cloud computing reaches its full potential.
From three different perspectives, we can better understand the evolution and challenges of cloud computing:
**First Perspective: Business Model**
The core value of cloud computing lies in its business model. It introduces an on-demand, pay-per-use approach that is both efficient and transformative. This model is not just about technology; it’s about redefining how businesses operate and deliver value. Trust remains the biggest obstacle in the adoption of cloud services, not because of technological limitations, but due to concerns over service quality and reliability.
Evaluating the success of a cloud project should be based on its commercial viability, not just technical implementation. The business model of cloud computing involves delivering services over the internet, with key concepts like on-demand access, flexible payment, and centralized management. Users no longer need to maintain their own infrastructure, allowing them to focus more on their core business.
This model opens up endless possibilities for innovation, especially for SMEs. By shifting from asset-based spending to operational costs, they can improve cash flow and access high-value services at lower costs. For larger enterprises, it enables new revenue streams, such as renting out equipment instead of selling it.
Extending this idea beyond IT, into logistics, transportation, and corporate operations, could lead to even greater efficiency. If these systems are managed centrally and resources are allocated on demand, it could revolutionize entire industries. Companies like Suning and Alibaba have already started exploring these possibilities, demonstrating how cloud computing can transform traditional business structures.
However, trust remains a critical factor. Just as Alipay built trust in online transactions, cloud service providers must establish reliable mechanisms to ensure data security, privacy, and service continuity. The network itself is another key enabler—broadband accessibility and performance are essential for the widespread adoption of cloud services.
Ultimately, cloud computing represents more than just a technological shift; it’s a transformation in business philosophy and societal operations.
**Second Perspective: Business Model (IaaS, PaaS, SaaS)**
Cloud computing can be viewed through three levels: IaaS, PaaS, and SaaS. Each offers unique opportunities and challenges.
IaaS, or Infrastructure as a Service, provides users with scalable computing resources over the internet. While it has strong demand, especially in areas like storage and virtual hosting, many providers still rely on outdated methods, often just renaming traditional virtual hosts as “cloud†solutions. True IaaS requires advanced virtualization and automation to offer real flexibility and scalability.
PaaS, or Platform as a Service, allows developers to build and deploy applications without managing underlying infrastructure. However, it’s highly competitive, and only a few large companies can afford to develop and maintain robust platforms. Integration of business capabilities, API support, and third-party development are key to its success.
SaaS, or Software as a Service, delivers software over the internet, typically on a subscription basis. While it offers convenience and cost savings, it also faces challenges related to user experience, customization, and data security. In China, where trust in digital services is still developing, many SMEs remain hesitant to adopt SaaS solutions.
Despite these challenges, each level of cloud computing has its place and potential. The key is to align the technology with real business needs and user expectations.
**Third Perspective: Technology System**
At the heart of cloud computing is a complex system of technologies, including virtualization, distributed databases, parallel programming, and service-oriented architecture. However, many companies today confuse virtualization with cloud computing, using it as a marketing gimmick rather than a true cloud solution.
Core technologies are still evolving, and breakthroughs are needed to fully realize the potential of cloud computing. Without real advancements in hardware, networking, and security, cloud services will continue to face limitations.
In the absence of major technological progress, many companies focus on improving user experience, such as offering easy-to-use cloud storage solutions. Even industry leaders like IBM have struggled to move beyond basic server and virtualization setups.
Ultimately, cloud computing is more than just a set of technologies—it's a vision of a more flexible, efficient, and interconnected world. Its success depends not only on innovation but also on trust, business strategy, and real-world application.
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