Amazon's New Store: Utility Computing

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Generally, Laudon and Laudon (2011, pp. 230) points out that, Amazon provides a range of electronic commerce services under cloud computing, which also called utility computing. This enables Amazon to share its resources and software, among its many other products and services. Amazon together with its subscribers enjoys a number of benefits from these technology services. First, they are able to focus more on core operation competencies, because they are able to dedicate enough time on their jobs (Curtis and Cobham, 2008). Second, Amazon as well as its subscribers not only communicates faster online but also offline, which leads to improved teamwork. Malfunctions reduce as there is increased efficiency from the use of technology, given that Amazon is able to get dependable support from its technical team. Also, Amazon gains from the cut back technology equipment costs as they focus solely on it, especially in purchasing. Moreover, (Velte and Elsenpeter, 2009) states that, with technology services, companies like Amazon are able to establish a better competitive edge as far as speed and agility is concerned. Singularly, they are able to make their customers happier, since they are able to get help when they need it with reduced operating costs. Equally important, they are both able to get enhanced human resources, the environment created by technology attracts their stay in organizations hence stability in service delivery (Halpert, 2011). Conversely, (O’Brien and Marakas, 2008) suggests that, with the above mentioned benefits of integrating information technology in an organization, there are some demerits. For example, the price for implementation of information technology is often high; especially the cost of hardware not lea... ... middle of paper ... ...P. J., 2011. Management Information Systems. New Jersey: Prentice Hall PTR. McCarthy, K. J., 2007.Winning strategies for back office integration. {Online}Broadband properties. Available at: www.broadbandproperties.com. (Accessed 5 October, 2011). Mendoza. A., 2007. Utility computing technologies, standards, and strategies. London: Artech House Inc. O’Brien, A. J. and Marakas, G. M., 2008. Management Information Systems. Boston: McGraw-Hill /Irwin. Oz, E., 2008. Management Information Systems. Stamford Connecticut: Cengage Learning. Russell, L. and Thacker, M., 2011. HP Drives New Era for Cloud Computing. California: HP {online} Available at: http://www.hp.com/hpinfo/newsroom/press/2011/110125b.html . (Accessed 5 October 2011). Velte, A. Velte, J. T. and Elsenpeter, C. R., 2009. Cloud computing, a practical approach. London: McGraw-Hill Prof Med/Tech.

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