The technological revolution in the IT world has brought new models. Concepts such as Server virtualization, ERP multiplatform, external servers or cloud computing are brief example of this revolution. As in any revolution many questioned will be raised, which technology is considered a fad? Is that going to bring businesses any benefit? Which strategy should be considered to tackles the adoption of the new technology (Sánchez and Yagüe, 2010). Where as many still believe that traditional technologies will not lose their market share to amateur technologies such as software as a service (SaaS) is, but vendors like Plexus systems found that hosting, subscription based pricing, and (SaaS), start to attract large companies that need to react quickly to structural changes; like acquisitions and divestitures. AMR research predicts a large increase in the Compound Annual Growth Rate (CAGR) in alternate pricing models, such as hosting and subscription revenue (AMR research, 2007).
Allot of people see Cloud computing as a dream coming true. Expectations are high for such phenomenon that might potentially transform IT industry in both software and hardware. The main attraction in cloud computing is that there would be no need for large upfront investment in expensive. The fiscal barrier is the highest when it comes to any kind of investment especially for medium and small businesses (SMBs). SMBs are becoming the biggest fan of cloud technology. Cloud allows benefit from enterprise software -like ERP- capabilities without a major capital expenditure, which even attracts bigger firms that are looking for manageable cost-effective applications. The lack of expert labor or the scarcity of such capital could come in the second place. Cloud computing advocates promise a reduction in both capital and operational expenditure.
The main motivation of this article is to critically review the