Following the rapid development of IT (Information Technology), enterprises are willing to improve the business efficiency by introducing new technologies and adjust-ing the current business models accordingly. One of the new technologies, Cloud Com-puting, offers to the enterprises efficient business operations through improved service quality and reduced costs.
Cloud Computing is still at its infant stage and a very new technology for every enterprise, especially in Mongolia. Most of the enterprises are not very confident and financially not clear for applying Cloud Computing. In this paper, I discuss the benefits and drawbacks of this technology for Small and Medium Enterprises (SMEs) and tackle the issues by introducing Cost Efficiency and Cloud Environment.
Furthermore, the mappings between technical and business performance metrics are presented and leveraged to calculate Cloud Computing and Cloud service management cost model. In other words, this approach tries to quantify the impact of availability or responsiveness of the IT systems and services on business profits.
Finally, the efficiency of Cloud Computing in SMEs is studied for Mongolian SMEs. The result of this study can be beneficial to any organization in private and pub-lic sectors willing to exploit the advantage of Cloud Computing technology.
