The evolution of cloud computing has transcended its original function as a cost-saving technological alternative to on-premise hosting and has emerged as a strategic reconfiguration of digital infrastructure that fundamentally reshapes organizational performance, governance, and sustainability. Contemporary enterprises no longer approach cloud adoption merely through the lens of computational efficiency or scalability; rather, it is increasingly understood as a multidimensional transformation that intersects with environmental, social, and governance imperatives, operational resilience, and long-term competitive positioning. Recent scholarship has emphasized that the digitalization of infrastructure cannot be separated from broader corporate responsibility and sustainability frameworks, particularly in light of intensifying regulatory scrutiny, stakeholder expectations, and global climate commitments (Goel &Bhatiya, 2025). This study develops a theoretically grounded and empirically informed analysis of how cloud computing, when contrasted with traditional hosting models, redefines organizational infrastructure in ways that integrate ESG performance with technological optimization.

Drawing upon a comprehensive synthesis of prior research in cloud computing, security, scalability, task scheduling, data recovery, and service models, this article constructs a holistic framework for understanding cloud-native infrastructure as a strategic organizational asset rather than a mere IT utility (Paul &Pandita, 2018; Birje et al., 2017; Mukundha&Vidyamadhuri, 2017). The central argument advanced is that cloud platforms, by virtue of their virtualization, shared-resource architectures, and advanced orchestration mechanisms, allow firms to simultaneously achieve operational flexibility, economic efficiency, and sustainability gains that are structurally unattainable under conventional hosting paradigms. This claim is substantiated through extensive theoretical elaboration and interpretive analysis of existing studies on cloud scalability, security, energy efficiency, and governance.

The methodological approach of this research is qualitative and interpretive, grounded in systematic literature synthesis and comparative infrastructural analysis. Rather than relying on experimental or numerical modeling, the study integrates findings across multiple scholarly traditions, including information systems theory, sustainability studies, and organizational strategy. This enables the identification of patterns that reveal how cloud adoption modifies not only technical architectures but also institutional logics and managerial decision-making processes. The results indicate that cloud computing produces a convergence between economic and ESG objectives by enabling dynamic resource allocation, reducing idle capacity, improving data governance, and facilitating transparency and compliance across organizational boundaries (Islam, 2017; Goel &Bhatiya, 2025).

The discussion section situates these findings within ongoing academic debates regarding digital sustainability, data sovereignty, and platform governance. While critics argue that cloud concentration may introduce new forms of dependency and risk, this article demonstrates that, when appropriately governed, cloud ecosystems offer superior mechanisms for risk mitigation, environmental stewardship, and ethical data management compared to fragmented on-premise infrastructures (Agarwal & Jain, 2014; Choubey et al., 2011). The article concludes that cloud computing is not merely a technological upgrade but a strategic infrastructure paradigm that aligns digital transformation with the imperatives of sustainable and responsible enterprise.

cloud computing, digital transformation, ESG integration

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