Business – 6.1 External influences – Technological | e-Consult
6.1 External influences – Technological (1 questions)
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Advantages
- Cost efficiency: Pay‑as‑you‑go pricing eliminates large upfront hardware investments and reduces maintenance expenses.
- Scalability: Resources can be quickly adjusted to match demand, supporting growth without downtime.
- Accessibility: Employees can access applications and data from any location with internet connectivity, enhancing flexibility.
Disadvantages
- Data security concerns: Storing sensitive information off‑site may raise privacy and compliance issues.
- Reliance on internet connectivity: Service disruptions can halt business operations if backup connections are not in place.
- Potential hidden costs: Over‑use of services or data transfer fees can increase expenses unexpectedly.
Recommendation
The small business should adopt cloud computing because:
- It provides the financial flexibility needed to invest limited capital in core activities rather than IT infrastructure.
- The scalability ensures the business can respond rapidly to market opportunities without costly upgrades.
To mitigate disadvantages, the business should select a reputable provider with strong security certifications and maintain a reliable secondary internet connection.