The Multiplier Effects of Cloud Computing

The Multiplier Effects of Cloud Computing

“Dairy has the greatest multiplier effect for economic benefit to a community. Studies show dairy is well suited to our agriculture community and our geographic location.”
– John Hartford (1937-2001), American folk and country musician.

In macroeconomics, the “multiplier effect” is defined as follows: “A measure of the change in a country’s money supply that occurs as the result of banks’ ability to lend. The multiplier effect is dependent on banks’ required reserves, or the amount of money in deposits they are legally required to keep in-house. If a bank has a low reserve requirement, it is able to lend more of its deposit money, which in turn increases the money supply.

In simplest terms, “multiplier effect” is the multiplication of benefits along a chain of events, all traced back to a single cause. For example, as mentioned in Hartford’s quote above, with availability of dairy products, a population will have healthier children who will grow up to be healthier adults and work productively to improve the economic conditions of a community. This is in addition to direct benefits to farmers and associated businesses. Cloud computing can produce a similar multiplier effect in the community.

Consider the areas cloud computing can have a positive influence on – technology, business, education, health, travel, entertainment, etc. and you can gauge the possibility of these benefits multiplying and benefiting large sections of the global population.

See: How Cloud Computing Can Create Jobs

See: How Can Cloud Computing Help In Education?

See: Gaming as a Service – The Future of Cloud Gaming

See: Is Amazon’s Cloud Player a Game Changer in the Music Industry?

See: Cars on the Cloud: Microsoft and Toyota Join Hands in Cloud Computing Space

Now, let’s look at the multiplier effect from the other side of the table, where cloud computing is the solution and not the cause. It is an established rule of thumb that when use of a technology grows by 10 times, it is time to develop new technology. That is the reason computing shifted from mainframes to PCs, and the reason why it makes sense to move from PCs to the cloud (See: Mainframes -> PCs -> Cloud Computing? ).

When the Internet was in its infancy 15 years back, there were scarcely 10 million users logged in and perhaps a million websites. Today, there are 3 billon users (including smartphone users) and 100 million websites. It does not take a calculator to determine that growth of the Internet has been much more than 10 times, 10 times 10 times more like it. And in order to support this exponential growth in the near future, traditional IT infrastructure such as client-server architecture may fall short.

However, cloud computing with its massive scalability and built-in elasticity can support such growth. Even today, some of the most widely-used services are already on the cloud – Gmail, iTunes, etc. That is why cloud computing can be both the cause and the effect of the technological innovations of the future.

By Sourya Biswas

Sorry, comments are closed for this post.

Is Windows 10 The Final Piece Of Microsoft’s Cloud Strategy?

Is Windows 10 The Final Piece Of Microsoft’s Cloud Strategy?

Windows 10 – Microsoft’s Cloud Strategy By all reports, Windows 10 is a resounding success. Microsoft reported that 14 million users downloaded the latest version of its operating system in its first 24 hours of availability. That number is ten times higher than launch-day downloads of Windows 8. Independent sources confirm that Windows 10 now…

The Rise Of The iPro: How Cloudware Has Helped To Develop A Responsive Business Generation

The Rise Of The iPro: How Cloudware Has Helped To Develop A Responsive Business Generation

The Rise Of The iPro Overview: Independent professionals are playing a more important role in business by the day, but how much has the introduction and adoption of cloudware helped to develop a generation of workers that are working more flexibly and efficiently than ever before? iPros, or ‘independent professionals’, are becoming increasingly common in…

Automation of Access Management Means a Happier IT Staff

Automation of Access Management Means a Happier IT Staff

Automation of Access Management One of tasks that your IT department probably really dislikes is managing the in-house and cloud user accounts and passwords for all of the employees in the company. Though this is usually an easy task, it is extremely mundane and time consuming, especially for a company that has frequent movement of…

Small Technology Providers (STPs) — VARs, ISVs, Integrators, And SME Consultants

Small Technology Providers (STPs) — VARs, ISVs, Integrators, And SME Consultants

Small Technology Providers (STPs) Continuation from last weeks article. See the article here  Here’s the opportunity for little / middle guy.  It’s funny, I’m a big networker and I can’t tell you how many conversations I’ve had with IT folk across all these specialty functions and everyone says the same thing:   They all felt like…

You’ve Moved Your Data To The Cloud…What Now?

You’ve Moved Your Data To The Cloud…What Now?

Data To The Cloud…What Now? You’ve done the research. You’ve vetted multiple cloud solutions. You’ve chosen the right vendor. And you’ve migrated your data to the cloud. All done, right? Not so fast… While it has become a bit of a scary proposition for many organizations to put their trust in the cloud and start…

The Conflict Of Net Neutrality And DDoS-Attacks!

The Conflict Of Net Neutrality And DDoS-Attacks!

The Conflict Of Net Neutrality And DDoS-Attacks! So we are all cheering as the FCC last week made the right choice in upholding the principle of net neutrality! For the general public it is a given that an ISP should be allowed to charge for bandwidth and Internet access but never to block or somehow…

Cloud Has Transformed the Costs and Capabilities of CRM

Cloud Has Transformed the Costs and Capabilities of CRM

Transformation of CRM Services Over the last decade, the Cloud has transformed the costs and capabilities of customer relationship management (CRM) tools. Users can now update and access contacts and sales data anywhere, whether in the office or at an impromptu meeting a hundred miles away. These systems promise an easy setup, decreased cost, and…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor