Cloud Computing And Its Application

Published Date: 02 Nov 2017

How Cloud Computing Benefits Businesses

New Advances In Business

Linh Luu

This report provides both IT and Business executives with a detailed assessment of Cloud adoption strategies, an analysis of business benefits, concerns, challenges and contractual issues that need to be addressed and discusses the key services providers in the market.

Contents

I. Introduction

II. Cloud computing and its application

1. Cloud computing

Using servers hosted on the Internet for computational purposes.  Cloud computing vendors build Internet accessible data centres and sell computing time to customers. (Weber, 2008)

Cloud computing is defined as the set of hardware, networks, storage, services, and interfaces that combine to deliver aspects of computing as a service. Cloud services include the delivery of software, infrastructure, and storage over the Internet (either as separate components or a complete platform) based on user demand.

Cloud computing has four essential characteristics: elasticity and the ability to scale up and down, self-service provisioning and automatic de-provisioning, application programming interfaces (APIs), billing and metering of service usage in a pay-as-you-go model. (Cloud Computing Characteristics discusses these elements in detail.) This flexibility is what is attracting individuals and businesses to move to the cloud.

The end user who doesn’t have to know anything about the underlying technology. Business management who needs to take responsibility for the governance of data or services living in a cloud. Cloud service providers must provide a predictable and guaranteed service level and security to all their constituents. (Find out what providers have to consider in Cloud Computing Issues.)

The cloud service provider who is responsible for IT assets and maintenance.

2. Background about Cloud computing

3. Different types of cloud computing

III. Benefit from cloud computing

Cloud computing is suitable for small organisations (Sosinsky, 2011, p17-19). The benefit of being able to access your data from anywhere with an internet connection; and the ability to replace occasional heavy expenditure on IT with regular and predictable operational expenditure (Anderson,2010). Also, companies can use this technology in their daily operations.

Cloud Computing has developed from a modular point solution in the form of SaaS deployments (e.g., talent management and expense management) to become an increasingly integral method for leveraging computing resources for IT and business. The rapid adoption of Cloud alternatives by the business has meant that management disciplines, standards and best practices are well behind where most organizations need them to be, in order to manage appropriately both IT and business risks. 

This disruptive change that is challenging today's organizations to take advantage of Cloud-based services, is proving a difficult pill to swallow for many organizations. They need support and advice to help them with both internal IT and business process transformation, in addition to the contractual advice to ensure they are approaching their Cloud opportunities in the right way to mitigate risk and maximize productivity advantages.

Cost savings for organisations (Cloud service is paid incrementally): Cloud Computing reduces the cost, improves quality, speed and flexibility by which businesses can access and suppliers can deliver services to support business needs. As Cloud-based services mature, many business functions can reduce their reliance on on-premises software, hardware and internal administration to access many Cloud services. Enterprises will be able to cut costs for purchase, installation and maintenance of natural resources. Clearly, instead of having to send an expert to buy a server, server installation and maintenance of this server, you do not need to do anything in addition to accurately determine their resource needs and requirements. When businesses use Cloud Computing services, especially the Public Cloud, a very low initial investment costs. If businesses build a large-scale system for themselves, the huge investment costs (purchase hardware, power management, cooling systems, human resources, operating system, etc.). And such costly projects often need a lot of time to be approved. The construction of such a system also requires a lot of time. Now, thanks to Cloud Computing, everything has been service providers ready, now just rent that can be used immediately without the need to pay for the initial investment. Another factor reducing costs is that customers only pay for what they actually use (Usage-Based Costing). With the resources rented but not used (due to low demand), the client does not pay. This really is a huge benefit for businesses using Cloud Computing.

Legal issues- (data control, ownership, data distribution and data disposition).

Monopoly issues- Key players include: Sun, Microsoft, Amazon, Google.

Manageability – Integrating cloud technology with existing infrastructure and platforms.

Security - Possible security and privacy risks (sensitive data, hackers etc).

IV. Advantages or disadvantages

1. Advantages of Cloud computing

Increased storage capacity (organisations can store more data on their own computer systems, servers etc ).

Reduce complexity in the structure of the enterprise: enterprise producing goods that have both an IT professional for operation and maintenance of the server is too expensive. If this process outsourcing business will only focus on its professional production of goods and reduce the complexity in the structure. 

Increased use of computing resources: One of the painful question of the investment in resources (eg servers) is how long it will be fully depreciated, me how profitable investment or not, outdate technology or not. When using resources on the cloud, you do not have to care about this anymore.

Improved automation (IT staff less concerned about software updates).

Flexibility.

Allows IT to shift focus (innovation, R&D etc).

2. Disadvantages of Cloud computing

Relies totally on network connectivity.

Problem in getting peripheral devices to work (printers, scanners etc).

Dependent on the storage provider.

Possibility that storage provider could close up shop (making it hard for the company to retrieve its data).

V. Conclusion

VI. Recommendation