Cloud Computing and the New Economics of Business - Article Example

Hugo states that Internet technology is facilitating the revolution of economies and in particular cloud computing. As much as it has many benefits, cloud computing has its drawbacks since it can destabilize the means by which information is shared or transferred. According to Hugo, since organizations had initially made a huge investment in traditional in-house computing technology, discarding it for advanced cloud computing technology will not be easy. Although it is a constraint, eventually many organizations will switch to it because new technology has many advantages (Weinman, 2012).

He asserts that it is essential for them to relook into the advantages of cloud connectivity. In switching, Hugo advises organizations to understand both the weaknesses and strengths of cloud connectivity (Hugos & Hulitzky, 2011). According to Hugo costs connected issues that need to be analyzed to guide the adoption of cloud computing or not. It is, therefore, essential to accurately measure and realizes the impact of these costs relating to cloud computing. It will enable making an informed decision on the issue.

Hugo also touched on the use of verified accounting and management strategy for example activity-based costing/management (ABC/M) and Statistical Parametric Mapping (SPM). It assesses functional data about whether to adopt cloud computing or not and to justify its relevance (Hugos & Hulitzky, 2011).