Applied Sciences
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DOI: Redefining Infrastructure: The Strategic ESG Case for Cloud over Traditional Hosting
Vishesh Goel , Product Manager, HotelKey Inc., USA Astha Bhatiya , Systems Engineering and Management, The University of Texas at Dallas, USAAbstract
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.
Keywords
Cloud Computing, ESG Strategy, ERP Systems, Governance Compliance, Renewable Data Centers, Digital Inclusion, Cloud Migration, Sustainable IT Infrastructure
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Copyright (c) 2025 aVishesh Goela, bAstha Bhatiyab
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