By 2020, the UK is targeting to become one of the biggest digital economic players in Europe. This is not a baseless target, seeing the potential of the State in running the current Digital Economy. The growth in the value of online business sales in the country every year has increased by 40 percent.
Also, there are around 93.4 million internet users and 71 million smartphone users in the country. This proves that the State has a considerable foundation in dealing with the digital economy. However, the question is whether the country is ready to become the biggest player in the digital economy, beating other European countries such as Britain which has become a digital economy giant with the help of logistics https://www.rhenus-lupprians.com/en/
Speaking of infrastructure, the digital economy business is not only about buying and selling transactions between buyers and sellers. However, more than that, many aspects of the digital economy are collaborating with other aspects such as freight forwarding services, road infrastructure, logistics, telecommunications providers, smart device manufacturers, service providers to cloud storage, making it easier to process the digital economy.
Definition of Digital Economy
Before talking about 2 things that are the focus of our discussion in this article, namely the digital economy and cloud computing. Let’s look at the definition of these two things. The digital economy is a sociopolitical and economic system that has the characteristics of an intellectual space, including information, various access to information instruments, information capacity, and information processing. The components of the digital economy that can be identified first are the IT industry, e-commerce activities, and digital distribution of goods and services. Digital economy, if simplified, is an economic sector that includes goods and services when development, production, sales or supply depends on digital technology.
While cloud computing or cloud computing is a combination of the use of computer technology (computing) and internet-based development (cloud). Cloud computing is a concept of understanding in the framework of creating a local online (LAN) and global (internet) computing framework. Where there are a variety of applications and data, and storage media that can be accessed and used in a shared (shared service) and simultaneously (simultaneous access) by a variety of users, ranging from individuals to corporate users or corporate class. One of the advantages of cloud computing is that it allows users to store data centrally on one server based on services provided by the cloud computing service provider itself.
Impact of the Digital Economy
During its development, the digital economy as one of the industrial revolutions had a significant impact on all aspects of the industry in the world. And these changes include the following:
- The broad impact as a result of digitalization which is the fourth industrial revolution is changing some people’s work patterns. For example, to become a taxi driver, you must register at the taxi company. Meanwhile, due to the digital economy, they can take advantage of the technology and internet sophistication by becoming an online taxi driver, as well as being more flexible without having to “hang around” every day.
- The next impact of the digital economy is in the banking or financial sector. At present, the community prefers practical matters, including the need for financial transactions. In the current era of the digital economy, to meet the needs of the community, especially in financial matters, more and more Financial Technology (Fintech) innovations.
- Digital economy encourages the creation of a digital market or e-commerce that aims to provide a forum for entrepreneurs – small entrepreneurs or e-commerce sector who need a container in selling their products.
- Grow new companies in this digital economy era. Many technology-based startups have sprung up, as a result, the dream of the State to have more entrepreneurs and create jobs can be realized by absorbing more workers.
- Although there is a lot of efficiency in the workforce, with the digital economy, businesses are not only focused on old economic principles that focus on production and buying and selling but are more synergized with other things such as knowledge, technology, and creativity.
Benefits of Cloud Computing
• Centralized server, cloud computing services allow users no need to build their own data center. Companies only rent cloud services from cloud service providers and can take advantage of the benefits of the cloud as their company’s data center.
• Data is safe, make sure the service provider chosen is safe and has been certified from a technology platform guarantee, and also an ISO guarantee.
• Broad reach and flexibility. This technology offers access that can be done anywhere and anytime and can be accessed by anyone who has access just by utilizing the internet network. With the use of cloud computing, buying physical memory is no longer needed because it can be stored virtually through cloud computing.
• Long-term investment, like new technology. Cloud computing will minimize the purchase of assets such as hard disks to store large data from companies, by making cloud computing investments, companies can create a centralized data center, which allows the company to develop more than one location.
Use of Cloud Computing as a Digital Economy Infrastructure
Concerning economic equality and to boost the country as the largest digital economy player in EUROPE, the need for data centers is urgently needed. However, making expensive data centers cannot be reached by e-commerce/ startup scale companies. This causes the development of data centers in the form of cloud computing/cloud computing is very necessary.