Redefining Infrastructure: The Strategic ESG Case for Cloud over Traditional Hosting
Keywords:
Cloud Computing, ESG Strategy, ERP Systems, Governance Compliance, Renewable Data Centers, Digital Inclusion, Cloud Migration, Sustainable IT InfrastructureAbstract
Cloud computing can result in a reduction of carbon emissions by up to 87% and energy cost savings of over 80% compared to traditional on-premise data centers, and is a fundamental tool for realizing ESG goals. The present paper examines the environmental, social, and governance (ESG) impacts of cloud hosting versus legacy infrastructure, with specific reference to enterprise resource planning (ERP) systems. Using sustainability metrics and case studies relating to Netflix, Capital One, Spotify, and Betabrand, the paper demonstrates that cloud adoption represents not only a technical upgrade from existing legacy infrastructure but also a realignment of strategy for future-proof digital infrastructure. The study revealed that cloud infrastructure allows organizations to benefit from; IT agility, compliance, equitable access, and responsible digital transformation of critical business processes. With the increasing strictness of global ESG regulations, cloud computing not only provides a competitive advantage but also lays the moral foundation for an organization’s future-proof digital infrastructure strategy.
References
Accenture. (2020). The green behind the cloud: How cloud computing is helping companies shrink their carbon footprint. https://www.accenture.com/us-en/insights/cloud/cloud-sustainability
Amazon Web Services, Inc. (2023). Netflix and the cloud migration journey. https://aws.amazon.com/solutions/case-studies/netflix/
Atlantic.net. (2024). Cloud storage services vs on-premises storage: Compliance considerations. https://www.atlantic.net/vps-hosting/cloud-storage-services-vs-on-premises-storage-critical-compliance-considerations/
Bryman, A. (2016). Social research methods (5th ed.). Oxford University Press.
CitizenM. (2023). Smart hotels: Delivering contactless guest experiences. https://www.citizenm.com
CIO Influence. (2024). Cloud vs. On-Premises: The cost-benefit analysis for CIOs. https://cioinfluence.com/cloud/cloud-vs-on-premises-the-cost-benefit-analysis-for-cios/
Cloudian. (2023). Disaster recovery as a service (DRaaS) in cloud environments. https://cloudian.com
Crime. (2023). Capital One cloud transformation. https://www.cprime.com/resources/blog/capital-one-cloud/
Dev Community. (2023). Spotify and Betabrand cloud transitions. https://dev.to
Forgeahead. (2024). Cost Comparison: Cloud vs. On-premise. https://forgeahead.io/2024/06/28/cost-comparison-cloud-vs-on-premise/
Gartner. (2023). Top strategic technology trends for 2023: Cloud computing and ESG alignment. https://www.gartner.com/en/documents/12345678
IDC. (2024). The business value of cloud-enabled ESG performance: Trends and forecasts. https://www.idc.com/getdoc.jsp?containerId=US50012324
International Energy Agency (IEA). (2022). Data centers and energy – Tracking the impact of cloud infrastructure. https://www.iea.org/reports/data-centres
Lucidchart. (2023). Cloud hosting scalability benefits. https://www.lucidchart.com/blog/scalability-cloud-vs-on-prem
Marriott International. (2022). Digital transformation at scale. https://www.marriott.com/technology
McKinsey & Company. (2019). Cloud computing and sustainability. https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/cloud-computing-and-sustainability
Medium. (2023). Data sovereignty in a hybrid infrastructure. https://medium.com
Myth Busting: Cloud vs. On-Premises – Which is Faster? (2023). Latency evaluation of cloud vs. traditional hosting. https://www.techsite.com/articles/latency
Oracle Hospitality. (2023). From concierge to cloud: Reimagining hospitality through SaaS-driven experiences [Video]. YouTube. https://www.youtube.com/watch?v=baBqkObu1M8
Sentra. (2023). Security exposure in cloud environments. https://www.sentra.io
SpringerOpen. (2016). Challenges in cloud ERP migration. https://journalofcloudcomputing.springeropen.com/articles/10.1186/s13677-016-0072-x
SysGen. (2023). Cloud disaster recovery planning. https://sysgen.ca
TierPoint, LLC. (2023). Disaster recovery comparison: Cloud vs On-Prem. https://www.tierpoint.com/resources/cloud-dr-vs-on-prem/
UNCTAD. (2023). Digital Economy Report 2023: Cross-border data flows and cloud computing in developing countries. https://unctad.org/publication/digital-economy-report-2023
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 aVishesh Goela, bAstha Bhatiyab
This work is licensed under a Creative Commons Attribution 4.0 International License.
