The New Technology Cloud Computing

Published Date: 02 Nov 2017

Cloud computing is a new technology service that enables delivery of computing resources over the internet. Computing resources are available through the internet at anytime, anywhere from any device. Cloud computing resources can encompass and support any number of applications, which makes it even more exciting. It is offered as a utility based service model and users only pay for the resources they use. Technologies like cloud computing can boost business agility and performance by providing immense computing power at nominal costs. This paper is intended to describe the cloud computing technology, its essential characteristics, service and deployment models, benefits and issues related to cloud computing. Cloud computing is still in its infancy but given the immense potential and benefits it is apt to say that the technology is here to stay.

Contents

Introduction

Cloud computing is the latest buzz word in the industry that is poised to have a profound impact on businesses, commerce and individuals. Cloud computing is an on-demand service model, which delivers computing resources to the user over the internet. It is called cloud computing because the applications and services exist on a cloud of web servers. Cloud resources are accessible any time, from anyplace to anyone with an internet. This technology offers computing resources as a service and enables to share computing resources among multiple users.

The shared pool of computing resources can support on-demand scalability of users computing needs. The resources can also be automatically provisioned and released with minimal management overhead. Cloud resources are offered as a utility based model and the user only pays for what they use (Turban, 2012).

In our current economy, technologies like cloud computing are required to lower costs without compromising performance. Cloud infrastructure consists of many integrated and networked hardware and software’s. But, the cloud platform has a user friendly interface that hides all complexities in the infrastructure from the user.

Users can get access to a world of applications and services from anywhere, at any time at minimum costs. With cloud computing, organizations do not need to invest in their own infrastructure. This helps organizations to save on costs related to infrastructure and administrative overhead (Strickland, 2010).

Cloud computing is still maturing and there are several challenges to overcome like integrity and security of data, standardization of services to switch between providers etc. Nevertheless cloud computing is quickly gaining popularity and is expected to grow. With this concept driving the trend, many well-known companies have initiated to invest on developing cloud technologies (Phillips, 2011). This paper describes the various important features of cloud computing, service and deployment models along with benefits and issues related to cloud computing.

Cloud Architecture

Cloud computing architecture is divided into two sections: the front end and the back end. The side visible to the user is called front end. Back end is the cloud, which is comprised of various computers, servers and data storage structures. Many clouds come together to form a computing system. A central server manages the entire system and monitors the traffic and usage in order to maintain integrity and functioning of the system. Front end and back end connect to each other through the internet (Strickland, n.d)

Cloud computing features

Some of the most important and defining characteristics of cloud computing are discussed as under

Dynamic computing infrastructure

As mentioned earlier one of the most important features of cloud computing is dynamic scalability based on user’s needs. To meet this requirement the cloud needs a dynamic infrastructure that is standardized, scalable and secure actual physical infrastructure. It should be able to support easy extendibility, to meet the demands of increased usage, without the need for renewing the architecture.

It must then be virtualized, to allow running services on virtual servers. It should self-sufficient to automatically provision and release services on demand. Additionally, this vast infrastructure must be highly utilized to deliver higher business value than what was invested. Dynamic infrastructure is essential to manage provisioning of services, in addition to maintaining high reliability and security. Furthermore virtualization helps effective utilization of resources to reap maximum benefits from investment (Surgient, 2009).

IT service centric approach

Cloud computing does not follow the traditional server centric approach. Rather it is built on a more IT or business centric methodology. Many cloud users require access to powerful computational tools for a short period of time. Cloud facilitates easy and quick access to the powerful computing environment and hides the infrastructure complexities behind it. This service centered approach tremendously decreases business costs and facilitates user adoption and makes businesses more agile (Surgient, 2009)

Self-service model

Cloud services are easy to use with intuitive user interfaces that enable the users to upload, build, deploy, schedule and manage business services as needed. This is kind of self-service model that empowers users a level of independence and supports productivity. In a way this approach saves time and costs related to maintenance for the cloud service provider (Surgient, 2009)

Maintenance

Cloud service platform have to be based on reliable technology that does not require maintenance. Automation of software enables self-management and leverages competencies are A provisioning and de-provisioning engine helps recovering resources to allow reuse, Allows for scheduling and reserving capacity of resources, Enables resource management for allocating and reallocating them to multiple users, Provides tools for effectively controlling access to resources

These features enable essential administrative control and increase agility, security, and uptime. They further reduce costs and administrative efforts required (Surgient, 2009).

Utility based model

As mentioned earlier with cloud computing, user pays for only the services used. Cloud platform requires a system to track usage and calculate bill accordingly. This consumption based billing model facilitates to reduce costs by tracking usage and enhances performance and services (Surgient, 2009).

Broad network access

Users can access cloud resources from any device that can connect to the internet like laptops, smartphones and PDA’s. Cloud computing provides access to huge computing power at anytime from anywhere.

Resource pooling

As mentioned earlier cloud computing pools together a bundle of resources. It supports multiple-tenant model and enables the provider to serve multiple consumers. According to Gartner pooling of resources together enables to build economies of scale (isaca, n.d.).

Cloud computing Service Models:

Given that as we discussed about attributes and uniqueness of cloud computing it is also a prerequisite to know about the Cloud computing service models. According to the cloud computing directory "Any service or an application that is based on web offered via cloud computing is called cloud service" (Cloud computing directory, Retrieved from www.cloudbook.net).

It is not only the complex cloud enterprise applications and computing resources obtainable as services can be categorized under cloud services. There are many other applications and services which fall under this category like word processing, email and photo sharing etc. Most companies in this technological driven environment are choosing to obtain cloud computing services.

According to the online tutorial from the textbook there are four broad services of cloud services which are known as Software as a Service (Saas), Platform as a, Service (PaaS), Infrastructure as a Service (IaaS) and Other Internet-Based Services (IBS). All these services are not only independent and work within their own scope but also can be used in the combination of other services. Each service individually is explained below (Turban E., King D., lee J., Liang T.P., & Tuban D., (2012).

Software as a Service (Saas)

There are many definitions to understand what software as a service is. To keep it short and easy to recognize, Software as a service is as a replacement for vendor selling a software to the client and maintains by implementing the service or application in their own environment, the vendor will host the software in its own environment and provide access to the application for the client over the internet (Sevroy, 2011).

Purpose of the SaaS is to avoid and eliminate the hardware and software maintenance burden to the end user and also to avoid technical software upgrades which is always taken care by the software vendor those sell the service or application to the client. But the software license was not owned by the user. Some of the examples for SaaS are CRM, Paychex payroll management, Sun Java communications and WebEx application.

Few other characteristics of SaaS are Web access to commercial software over internet, application maintenance will be managed all from the central location. No maintenance and handling risk for end users while technical upgrades and updates. Integration is easy for API’s between different places of software.

Platform as a Service (PaaS)

PaaS can be defined as the platform in computing technology where it allows user to create application very rapid and easily which is accessible through web. As in SaaS, Platform as a Service has no difficulty to uphold and buy the software application. Almost both SaaS and PaaS are same in benefits where Platform as a Service is different over the software development world (Luster & Moolenaar, 14th March 2012).

Since all the other varying services should require and fulfill the application development process, Platform as a Service has its unique character where services can be developed, hosted, tested and deployed at the same integrated development environment. Other character of PaaS is its web based user interface. Availability of these creation tools allow user to do various activities like create, test, deploy different user interface scenarios.

Infrastructure as a Service (IaaS)

This model of service is more of infrastructure rather than the applications or software services unlike the other two services discussed above. As mentioned infrastructure indicates Servers, storage, network equipment and data storage with maintenance facilities are majorly involved. In short it is the advanced way of delivering cloud computing infrastructure and will be billed accordingly to the services used by the clients.

Very encouraging feature in this service is it provides two different infrastructures within as sub categories known as "public cloud" and the other one "private cloud". These days some of the hosting providers started providing the combination of both these categories under the name of "Hybrid Cloud".

Other Internet Based Services (IBS)

Unique feature of this service is storage of data at different locations rather than the traditional way of storing data at fixed server location. Whereas users will see the storage location as a static location even after the data saves in different places. Storage location changes dynamically to the different third party locations.

Other services that clouds offer to the users directly are collaboration and middleware. Data storage approach in this service saves the cost and increases the safety avoiding the sudden crashes of hard drives. It also keeps the multiple copies of data easy to retrieve if any crashes occurred thus ensuring to access the data needed and operate without any hassles.

By understanding these models it is suggested to the organizations before adopting the cloud services they should know what aspects do they require and assess their own situations by analyzing the needs and types of solutions. On a whole it was clear that in the near future way of delivering the services and IT operations will be default by adopting cloud services.

Cloud Computing Deployment Models:

Organizations or business those adopted any of these three main cloud services also require the deployment models. There are four deployment models in cloud computing majorly. They are public, private, community and hybrid cloud. However to cut the operating costs and capital expenditure organizations these days are opting for the cloud computing services (Cloud tweaks, the four primary cloud deployment models (July 2, 2012).

The Public Cloud

This is the most accessible and commonly known clouds as it is open to anyone on the network while the services or applications are owned and maintained by the provider. All these applications and services will be making available to various end users. Sometimes such applications and services are provided by the vendors for free at no cost and sometimes mostly as pay per usage slab.

The Private Cloud

This deployment model can be mostly related to the clients those concern more about the data security. This approach is little same as to the process maintaining the clients own infrastructure for maintenance. Those business clients who gave much importance to data security will be taken care by this model.

This model of deployment will be appropriate for security concerned clients by customizing and also by hosting the services built and maintained for them specially. For making this successful the infrastructure will be maintained at the client environment or at the third party environment. SaaS applications can be considered in this category. Generally it costs more for this kind of deployment models.

The Community cloud

In this deployment model the infrastructure will be allowed to share between the communities or between several organizations. The observance policies and considerations applied will be same for all the sharing communities or business. This approach helps in reducing the costs in future prospects as the infrastructure cost and maintenance costs will be shared by all those businesses in the community.

The Hybrid cloud

This deployment model is for those organizations want data security and also looking for cost advantage benefits. Thus we can say this model works in the combination of both public and private deployment models. Approach of this model is by hosting the data in the client environment or on a private individual cloud at the same time as allowing keeping and accessing the shared data and applications on the public environment.

Those shared data and applications shared in public cloud will be of low risk services and those are comfortable to the organizations to share. On a whole it is comprehensible that depending on the structure of organization and the prerequisite environment cloud services will be deployed in diverse ways. It is known that organizations needs and requirements must be understandable before choosing the deployment cloud model.

Benefits of Cloud Computing:

Nowadays cloud computing is everywhere and keep on growing everyday with highest demand in information technology world. There are number of mid-size to large companies getting benefited by this technology and continue to grow their business towards their desired goal. Below is the list of advantages associated with implementing cloud computing technology in the companies.

Cost Efficient

Cloud computing technology is very cost effective and efficient in order to maintain and upgrade. Traditional desktop software’s are very costly to maintain in an organization and required lot of attention by the operator. There are number of users associated with that software which cost licensing fees which results in increasing companies IT expenses.

On the other hand cloud is available at comparatively cheap rates in the market and very friendly to use which results in reducing company’s IT expenses. There are payable options available for payment such as pay-as-you go and one-time payment along with some other scalable option (Priya Viswanathan, 2010).

Storage Capacity

Storage capacity is one of the important factors always taken into consideration while storing the critical data of an organization. There is always possibility of running out of storage while performing any storage related activity which may cause an interruption while loading important data. Cloud computing gives almost unlimited storage capacity which helps to perform loading data operation successfully without any interruptions (Priya Viswanathan, 2010).

Backup and Recovery

This is very important task to bring the database back to normal in case of any disaster occurs in an organization. There is possibility of losing data in an organization due to unwanted disasters such as power failure, flood, fire, storm etc. In order to avoid this kind of scenario backup and recovery operations are very important to keep databases up and running.

Cloud gives an option to store all the data in it and allow performing backing up and restoring operation which become very easier than storing the same on a physical device. Cloud service providers are very expertise faculty to restore the databases quickly from any disaster recovery. This very effective service provided by Cloud computing providers compare to other tradition methods of storage (Priya Viswanathan, 2010).

Automatic Software Integration

Software integrity is very important parameter that plays an important role while implementing applications as per company preference. There are additional efforts associated with other software’s in order to customize and integrate of applications as per desired preferences in an organization. In the Cloud computing all these extra efforts not required as software integration process is automatic. It helps to pick suitable services which are best suitable for business need by an organization (Priya Viswanathan, 2010).

Less Operational Issue

Consistency of a company is very important in order to maintain the excellent standard and services in this competitive market. Operational issues are hurdles in the growth of an organization which cause due to low performance and quality of services provided to company. Implementation of standardized services is always important to reduce issues and build the consistency of a company. Cloud computing allows you to deploy the same service or topology of services repetitively, with the same result every time. This allows organizations to predicatively deploy pre-build server images and application services or entire application landscapes defined using design patterns (Edwin Schouten, 2012)

Cloud Computing Issues:

Cloud computing are the services that are delivered by using computer resources over the networks. This is the one of the best methods for companies to enhance their IT infrastructure and moves business faster and smarter. It is good to adapt for new technologies, but at the same time we have to know the pitfalls of it as well. As cloud computing services are across the networks, there are certain issues and problems involved in it. Companies are still in lack of taking protection measures to counter the attacks that are directed at their servers. This is due to lack of resources and poor programming in the cloud computing systems.

Security Issues

Security is one of the most major issues of cloud computing. According to Harpreet Singh (2010), due to the security policies many companies will shy away the implementing the cloud computing, this is because of poor programming and lack of proper resources in the cloud computing systems.

In cloud we will store large volumes of data or information which can be sensitive, so it should require frequent access monitoring and protection. The main problem is storing data in the cloud; it has to be confidential and available. For implementing security to the data there is no universal policy to be followed, each vendor will follow their own ways.

Cloud computing is associated with many security issues. One among is privileged access to the data. For organizations it brings a lot of risk as data was processed outside the premises. The clients has to gather all the information about who really handles their data in cloud as data bypass the control of personal and physical security measures. Clients have to be responsible for their own data even though the data is held by third party in the cloud. This should be put into consideration and the clients have to be concerned about this.

The other security issue is where the data is located in the cloud. Sometimes clients find difficult to get the location of data in the cloud like which place, country. So clients have to be responsible that data has to store within given jurisdiction. One more security issue with the use of cloud computing is data segregation and which is important. In cloud we will store data for different clients for same services and data can mix with these from the other vendors which have to take care by companies.

Data that is stored in cloud has to be well authenticated. Usually the authentication is through passwords and tokens. As the data is transferring between different communication channels we have to be careful with the cryptographic attacks. These attackers can place themselves in the communication’s path and there is the possibility that they can intercept and modify communications.

In cloud computing, system integration is another problem faced by organizations. The organizations may switch from one cloud vendor to other, at that time data transport from one vendor to other will be difficult and sometimes there be loss of data. Organizations have to take care when initially when choosing the vendors. To keep data secure first we have to evaluate cloud security by identifying unique security requirements and second we have to attempt to present a feasible solution that eliminates these potential threats.

Control

Security measures assumed in the cloud must be made available to the customers to gain their trust. There is always a possibility that the cloud infrastructure is secured with respect to some requirements and the customers are looking for a different set of security. As per Jeff, B. (2011, May 3) here are some of the security risks controls which organizations have to concern.

Data Transfer:

Data has to be transferred via internet even it is travelling between different networks. So we have to make sure that the data is always travelling on secure channels. We have to follow certain encryption techniques while transferring data which are developed specifically for protecting Internet traffic.

User Access Control:

Managing identities and access control for organization applications remains one of the greatest challenges. First, we have to consider the sensitivity of the data you’re allowing out into the cloud. Second, we have to ask providers for specifics about the people who manage your data and the level of access they have to it.

Data storage:

In cloud data will be stored in different servers and in different locations. When it is on provider’s servers, data has to be securely encrypted. Organizations have to cautioned that data has to be secured not only when it is transferring but also it has to secured when it was resides on vendors servers.

Data integrity:

For any organization data security is always paramount. There will be always risk when data it resides on vendor servers. Attackers will intercept the data one way or another when the data is travelling between networks. Better encryption is required in this case, but technology is always evolving and you can bet that if a person came up with it, another person can break it. Privacy is another big concern in data integrity because we are handling data over third party, they can use the data for self-gains.

Regulatory Compliance

As cloud computing continue to gain in popularity and complexity, organizations are tasked with ensuring regulatory compliance and meeting new needs that governing entities have not caught yet. Organizations have to be careful in finding right provider and have to work with them to create a custom system which benefits the organization in taking care of many of the compliance requirements. As we will place most sensitive and critical data on the third party service providers, we have to trust their systems. We can trust in a compliant and certified Cloud Service Provider.

According to Jim Metzler (2012, Mar 27), a large part of challenge is associated with security in general, and regulatory compliance in particular, is the changing nature of security hacks. Most such attacks were originated by individual hackers whose primary goal was personal disrepute. The cloud computing regulatory Compliant is the term given to the model of computing where business transactions span across regulated zones and public clouds.

The data which is Sensitive has to be encrypted, tokenized and managed in the regulated zone within the secure zone of an organization, while all non-sensitive data should resides in the public cloud. The most important is selecting a cloud computing service provider that meets industry compliance and we should not be overlooked. We should not be compromised by a service provider who cannot deliver the security specifications that are required for legal business as we store critical data on cloud.

The Business Value of Cloud Computing

Like the early days of e-business and the introduction of SOA, cloud is in its infancy, with its promise still to be fully realized. Advocates of cloud are limiting their focus to tactical cost benefits and efficiency gains on the IT infrastructure side, but the real benefit of cloud computing will be realized within the context of future developments that will shape the course of IT. When combined with these developments, cloud computing will become part of an innovation that changes everyday life.

A Platform for Collaboration

Cloud computing will become the foundation for new forms of collaboration and cooperation within a company that break down barriers that separate individual departments, isolate specialist areas and IT organizations, and divide companies from customers and business partners. By breaking down these barriers, more people, more expertise and more business information will be brought together to create more dynamic and effective organizations.

Consumer-Driven Cloud

Cloud computing offers that business driver by advancing the goals of cooperation and collaboration within a cost-effective and easily scalable model. Within businesses worldwide, the expansion of forms of cooperation and collaboration is already taking place. Gartner calls this phenomenon and its further evolution "extreme collaboration."

These businesses and smaller service platforms such as Foursquare, emphasize the benefits of active user participation in various ways. They bring like-minded people together (social networking through Facebook), support working together (social collaboration through wikis and blogs), guarantee standardized access to information (social publishing with Flickr, YouTube and slideshare.com) and generate feedback (social feedback with Amazon).

All the examples mentioned above have two things in common. First, they focus on users and their needs and are streamlined for communication and collaboration. Second, they establish a comfortable user environment with the cloud computing operational model. Where and how the infrastructure to support this model exists, let alone IT infrastructure scalability issues, are not a concern for customers.

Cloud Use in Business: Tactics and Beyond

Cloud services increasingly are being offered for companies at different levels—from server and storage, to applications such as e-mail or office programs, even to specialized applications. Instead of operating their own data centers, businesses can consume and pay for services as needed. Growth rates in the high double digits document the interest in this option. Cloud revenues in the enterprise sector are expected to quadruple to about $11.4 billion by 2015.

Apple established a cloud-based ecosystem around its iPhone business. The company itself provides an excellent end-user device and an appealing marketing and payment platform through which the consumer can access applications for the iPhone. Apple then allows application developers to share in the success without having to deal with the nuisance of running an online shop organizing payment transactions. Apple supports these activities through its online App Store and iTunes platforms—and makes money in the process.

Strategy and Opportunity

Economists like to place the concept of social computing and crowdsourcing in the context of theories presented by British economist and Nobel Prize winner Ronald Harry Coase in "The Nature of a Firm." In the end, business decisions revolve around the following question: Under which conditions should a company invest its own effort or outsource it to a third party? The internet has significantly reduced the cost of collaboration, and the cost of coordination and communication. The operational model of cloud computing further reduces this initial hurdle because of the easy and flexible way companies can access IT services independent of location or time.

For instance, in a manufacturing firm, sharing among product and process experts, department heads, customers and partners in the planning process establishes an excellent basis for addressing customer needs with product improvements. It also accelerates product development and delivery. Equipping staff with mobile end devices guarantees that coordination and decision-making happen in real time.

This real-time management enables smooth transitions by allowing anyone to enter or quit the interaction at any time. A variety of internal and external participants work together, without organizational or geographic barriers, to introduce operational improvements and process optimizations to the service portfolio. Instead of having to spend precious time requesting information from individual departments within a company or compiling results, they are simply "there."The result: The Company saves time and money, delivers better products and ultimately strengthens its competitive power. For this reason, it is in a CIO’s best interests to adapt social computing technologies and extreme collaboration applications to IT-supported processes.

Cloud Cautions: the Crippling Effect of "Standard"

The goal of gaining greater agility and flexibility in IT is not fundamentally new, and helping companies achieve that goal has been the promise of many technology developments preceding cloud. Companies should apply the lessons learned from prior technology initiatives in their exploration of cloud computing.

In the past, many technically-motivated IT concepts have failed to reach their full potential on the application side (supply chain management, customer relationship management, and lean production) or on the program level (SOA) when faced with the reality of a traditional application approach.

One reason for this failure is that when searching for the most comprehensive support for business processes, the majority of companies decided establish a long-term partnership with a provider of enterprise resource planning systems, such as SAP or Oracle. Because of the process support they provide along every service and value chain, standard systems promise maximum efficiency when compared with a combination of specialized solutions from different providers. Application function and process management are firmly interwoven.

Cloud Computing Complements Business Process Management

Cloud computing is also a natural complement to business process management (BPM). Collaboration is essential for the modern goals of BPM, which requires cooperation across the enterprise. To achieve this collaboration and cooperation, a process and integration platform is needed that follows the entire lifecycle—all the way from modeling a process to executing it within a software runtime—of a business process with a uniform architecture philosophy and a semantic metadata model.

Only then can an organization bridge the existing gap of understanding between business and technical IT around BPM. With the collaborative approach of model-to-execute, business process models created by process designers can be transferred into executable services in the IT and application landscapes with a high degree of automation.

Changes made by any stakeholder are immediately transparent at every work level. The integration of performance data from technical monitoring with key business process indicators creates the basis for collaborative dash boarding to enable ad hoc and joint decision-making when facing new market challenges or disruptions.

Using cloud computing to simplify the collaboration between process stakeholders is a key success factor for improving flexibility and quickly adapting business processes to address constantly changing market conditions. A business process can be modeled, prototyped and tested quite easily in the cloud.

Whether the services and applications are run in the cloud later or on a traditional in-house system is irrelevant. Without a doubt, businesses have greater access to specialized application services through the cloud computing model. Therefore, all data and services will need to be incorporated transparently in a complete process design from the operational side—independent of location and origin.

Providers of standard software must attempt to loosen the deep integration of their software and offer more small-scale application content. Only then will application providers open up the full potential of cloud computing. Unfortunately, by dominating the current discussion with technical concerns, some software companies are successfully distracting from the actual requirements context.

Transferring a traditional ERP model into a cloud deployment might help increase efficiency in that regard, but that doesn't resolve the fundamental contradiction between standard software and process flexibility – it just hides it behind a cloud. Ultimately, the value of cloud is far greater than a tactical focus on technology and operating costs. When utilized to collaborate on process design and other essential business tasks, cloud computing will be a source that powers the transformation to becoming a fully digital enterprise.

By outsourcing IT infrastructure needs to a cloud vendor, much of the burden of the company’s IT staff is now dealt with by the cloud solution provider. This way company’s IT staff can concentrate on core business tasks without having to employ additional personnel. Cloud computing solutions also offer built-in disaster recovery functionality and remove maintenance costs.

Ability to shift the operational risks from your company to a cloud provider is also one important value of cloud computing. Due to the nature of cloud computing and the fact that cloud solution provider deals with the computing processing, the risk that you’ll run out of capacity to support your customers and business processes is highly reduced.

The business value of cloud computing can be summarized as Reduction of total cost of ownership, Transition from capital to operational costs allowing companies to use existing infrastructure resources more efficiently, Improvement of business agility, Rapid execution of IT projects to increase ROI and Fast adaptation to market needs.