Outsourcing Business to Cloud Computing Services: Opportunities and Challenges

Advances in service oriented architecture (SOA) have brought us close to the once imaginary vision of establishing and running a virtual business, a business in which most or all of its business functions are outsourced to online services. Cloud computing offers a realization of SOA in which IT resources are offered as services that are more affordable, flexible and attractive to businesses. In this paper, we briefly study advances in cloud computing, and discuss the benefits of using cloud services for businesses and trade-offs that they have to consider. We then present 1) a layered architecture for the virtual business, and 2) a conceptual architecture for a virtual business operating environment. We discuss the opportunities and research challenges that are ahead of us in realizing the technical components of this conceptual architecture. We conclude by giving the outlook and impact of cloud services on both large and small businesses.