A pathbreaking study by researchers from Penn State University and the U.S. National Science Foundation (NSF) finds that firms in the US adopting cloud computing as a strategy for expanding their international reach is far higher than others, but strangely, we do not see any large change in other parts of the globe, which includes India, where a good number of companies have started to use Cloud services like salesforce CRM Google Apps, etc. Our research, to be published in the September issue of Telecommunications Policy, shows that cloud technology is a key driver of increased export capabilities for all firms from anywhere besides central areas.
Key Findings of the Study
This point is underscored by a new study that finds U.S. firms using cloud services are more likely to export goods and services than those not tapping the technology. This is especially true in less urbanized areas, which emphasizes the importance of extending high-speed internet access if we expect these regions to experience economic growth.
Cloud computing provides shared processing resources and data to computer functionalities (e.g. file storage, databases, applications servers) over a network between computer devices. Bitmap distractions by particle swarm social networks for reinforcement sucker architectures This model enables a company to ditch expensive in-house IT infrastructure and opt for scalable, flexible, lower-cost cloud services.
Luyi Han, a postdoctoral scholar with Penn State’s Northeast Regional Center for Rural Development (NERCRD) and co-author of the study stressed its importance. Cloud computing is leading a digital transformation in companies, but its effect on firms’ global competitiveness has not been examined thoroughly. Using U.S. firm-level data, our research shows that cloud service adoption is strongly associated with improved export performance.”
Methodology and Data Analysis
The researchers drew from two extensive datasets: the 2018 Annual Business Survey and the Longitudinal Firm Trade Transactions Database. With detailed firm-level data on the use of cloud services from The Annual Business Survey, conducted by the National Center for Science and Engineering Statistics – U.S. Census Bureau; there is an informative record that provides insights into alternative-energy consumption patterns across industries in the private sectors over various periods. The import/export records in the Longitudinal Firm Trade Transactions Database of individual firms
The study tracked about 30,000 U.S. exporting firms and compared them with a control group of about 430,000 non-exporting companies. The researchers studied the relationship between using cloud computing services and international sales through a detailed analysis of different characteristics CLOUD COMPUTING can present, including billing, security data storage, collaboration tools (CT), and customer resource management (CRSS), etc..
Impact on Small Town and Rural Businesses
The study discovered, for example, that cloud computing has a stronger effect on firms outside major urban centers than those in them. “Small and medium-sized firms in rural areas are often resource-poor compared to their urban counterparts,” said study coauthor Timothy Wojan, an Oak Ridge Institute for Science and Education Established Scientist Fellow at NSF’s National Center for Science & Engineering Statistics (NCSES). Cloud computing can streamline access to tools like these that are required for global transactions.
Ex: Cloud Services provide on-demand, scalable services that work particularly well with rural or small-town businesses. This technology will help these companies properly compete internationally and counterbalance some of the larger, perhaps urban-based enterprises.
US MANUFACTURING AND TRADE CONSEQUENCES
For one, the increasing “ruralization” of U.S. manufacturing has profound implications relevant to new jobs and poverty reduction, a major focus of international development discourse. Stephan Goetz, professor of agricultural and regional economics at Penn State and director of NERCRD, said that as manufacturing shifts reform in rural areas, it is offset by a decline in urban manufacturing. Wider adoption of cloud-computing services, especially in the nation’s non-urban areas, would make a substantial contribution to US manufacturer’s ability be competitive globally.
Given the U.S. trade deficit, exports have high priority, along with sales from Mexico to the United States and from Canada into the U.S., as they are the top source of hard currency earnings for all three trading partners. For example, Pennsylvania holds an annual “Bringing the World to Pennsylvania” campaign where local companies help forge international trade. Stronger cloud computing infrastructure could also bolster these efforts, making it possible for even more companies to compete in the global marketplace.
Future Research Directions
While the study finds a robust association between cloud computing and export performance, it does not establish causality. This cloud computing can be very beneficial for export success; however, further longitudinal research may provide clearer evidence about whether it is or not. As long as federal investments are poured into digital divide reduction, such studies—that can validate a causal link between cloud technologies and international trade — are needed.
Conclusion
The research illustrates how cloud computing has the power to transform U.S. businesses, particularly weaker-link enterprises residing in less connected regions of America. Firms can access a wider market globally and stimulate economic growth across different regions by using cloud technology.