Project Objective

Discuss about the Advantages and Disadvantages of Cloud Computing for Business.

Cloud computing can be briefly described as a type of technology that allows users, in our case business firms, to store their data on servers and then access that information as a form of service. The idea of paying for computing services that can be offered by using large distributed computing facilities has been around for quite a while.  However, its implementation to the extent that even the common user can access it, is a fairly new technology that emerged around 2007.  

In this research by exploring the essential characteristics, deployment models and service models of cloud computing, I will show the advantages and disadvantages brought about by cloud computing.    

The purpose of this research is to list these advantages and disadvantage in details. Apart from listing them this research shows how these advantages and disadvantages are brought about and how each of them affects both the business firms that subscribe to their services. The findings of the research can be used by business firms as they try to figure what cloud services are best to subscribe to. It also gives them a chance to access the risk they could end up facing if they decide to apply cloud computing in their operations.

The scope of this research is limited to how cloud computing makes it easier for businesses to carry out their operations and some of the challenges that cloud computing brings to business operations. There are various additional details given such as characteristics of cloud computing and its deployment models as I try to show how the advantages are brought about. This research is meant to be useful to all companies, whether big or small.

The National Institute of Standards and Technology (NIST) defines cloud computing as a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (such as networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. (Mell, 2011). It can also be described as the access of shared resources stored in huge data centres by clients over the internet. (Babcock, 2010).

 Cloud computing technology is adopted by firms because it gives them the option of receiving services on demand and this in turn helps reduce amount of money spent on hardware and software resources. (Dubey and Wagle, 2007). The effect of this has had a huge impact on small and medium business firms, changing their cost structure totally.

Cloud computing has several desirable features. They include: self-service, per-usage metered and billing system, elasticity and scalability and finally its customizable. According to the National Institute of Standards and Technology, cloud computing has five essential characteristics. Some of these characteristics are similar to the features mentioned above. To some extent we can say that these characteristics are derived from the features mentioned above. The five essential characteristics are as follows:

• On demand self-services. This is seen where businesses can request for cloud services online and pay for them without their being any human-interaction between them and the service providers.
• Broad network access. This means that all types of clients can access cloud services, it does not matter whether they are using thick or thin client interfaces to access the services. For example, it does not matter if you are using a smart phone or a high-end computing platform such as a mainframe computer, you can still access the services.
• Resource pooling. Using a model that can host more than one client, a resource can be shared simultaneously by several clients. This is because the various resource is virtually and physically assigned such that they meet specific needs of each consumer.
• Rapid elasticity. Cloud services are easily scaled to whatever the client’s needs are. For example, a business firm can scale down it storage space on demand if it no longer requires it and if the need for more storage arises, it can demand for more storage space in just few minutes.
• Measured service. Services offered by cloud computing can be measured and a report developed. This report is what determines how much the client is going to pay for the services they received.

When it comes to deployment, businesses can use the following four models:

• Private cloud. This is a situation where a particular business organization has its own cloud infrastructure that can be accessed by various consumers. The infrastructure can be managed by either the organization or a third part or both can manage the infrastructure simultaneously.
• Community cloud. This is infrastructure that is used by consumers who have a common interest. The consumers can be from more than one organization and they come together to form a community.
• Public cloud. This infrastructure is meant for use by the general public. A single organization could be in charge of the cloud or several organizations could be running it.
• Hybrid cloud. This is an infrastructure that is comprised of two or three of the above deployment models.

Project Scope

We have three models in which cloud computing services can be deployed in businesses. The first is Software as a Service (SaaS) where the clients in our case businesses access various application through a cloud infrastructure. The business firms have no control of the various component such as servers and networks found in this infrastructure. They can access the applications but they have no control capabilities either. The second model is Platform as a Service (PaaS) where the business firms have control of the applications and their configuration settings but not the underlying infrastructure. Finally, we have Infrastructure as a Service (IaaS) where the firms have control over the storage, operating systems and the individual applications deployed. Examples of vendors that offer cloud services to businesses include: Amazon, Rackspace, Gogrid, Microsoft and many more.

From all the above, we can now state the advantages a business stands to gain and the disadvantage they should expect.

Reduced expenses. This is because rather than acquire hardware for purposes such as storage, all they have to do is subscribe for storage space from a cloud provider. This much cheaper meaning all they incur are operational expenses.

Cloud computing is highly scalable. This is brought about by the fact cloud computing is highly elastic. That is, business can scale up or down depending on the amount of resources they need.

Cloud computing is also highly flexible and mobile. This is because it is possible for user to access cloud services despite the platforms they are using and where they are located. For example, a user can access the services from a smart phone even when on the move.

Better utilization of resources. When it comes to businesses, resources can be put into various categories such as human resources and assets. For example, ICT staff hired to maintain hardware can be assigned to other areas as their work is reduced since they are no longer responsible for most of the hardware. When it comes to assets such as offices, space is freed up and it can be used for other purposes.

The time it takes for a product to be acquired is reduced. All businesses have a systematic way in which they acquire resources. For example, if a new server is to be acquired, processes such as procurement need to take place. This is time consuming. On the other hand, when it comes to cloud computing the business is not responsible for acquiring the server. This means that all they have to do is request for services from the provider and within no time they are delivered.

Cloud computing helps businesses be eco-friendlier. This is because it reduces the number of hardware components that a business uses and the amount of energy it consumes.

In case of natural disasters is more secure. This is because instead of an organization’s data being stored locally they are stored in the cloud meaning if the organization is destroyed its data is safe.

Cloud services provides hardware redundancy and automatic storage failover. This means that if there is hardware failure, businesses do not have to stop operations. The providers have a system that creates copies to mitigate hardware failure.

Literature Review

Software updates are instant. Businesses no longer have to worry about updating software because the provider is responsible for that. It also means that they do not have to use obsolete software as cloud providers ensure theirs are up to date.

Easier group collaboration. As businesses store their information in one place it is easier for them to share information. It also makes it possible for multiple users to collaborate on projects.

Device independence. This mean that a user is not tethered to a single computer. That means if you change a document on one device, the changes follow you over the cloud.

Like all new technologies cloud computing has its issues and a lot of research is yet to be done. (Armbrust, 2009). These issues lead to disadvantages such as:

Vendor lock-in. Different cloud computing vendors use different protocols and APIs. This makes it difficult for businesses to run applications on different cloud based systems. These also means that businesses have to ensure that their applications are compatible with the ones the cloud vendors provide. It also means that business go through a difficult process if they decide to migrate from one vendor to the another as there are no set standards for these. (Ling, 2009).

Constant internet connection is needed. Without an internet connection, cloud services cannot be accessed. The result is that businesses prefer to run most of their critical operations on local servers. The absence of one can end up stalling operation when there is no internet connection.

Some information determines the fate of a company. Such information is too sensitive to store on cloud servers especially if you do not trust the provider.

Low speed-connections. This results in data transfer issues. Slow connections make it next to impossible to use cloud services. When transferring huge amount, data transfer bottlenecks could end up occurring.

Loss of data. Cloud platforms susceptible to attacks. Bugs and viruses are used to carry out these attacks and at times this could lead to the loss of data if the firewalls the vendor has put in place are not strong enough. This is disastrous for business especially if the data lost has a monetary value.

Limited features in web based applications. Unlike their counterpart desktop applications, web based applications do not have features that are well developed. A good example is the difference in features between Microsoft PowerPoint and Google Presentation. This means businesses will prefer desktop applications.

Web based application are also generally slow despite them being connected to fast internet connections. This is because everything on them including the interface has to be constant communication with the cloud server. This back and forth communication make them slower than desktop application. This is very discouraging if you are performing critical business operations.

Conclusion

Cloud computing gives the illusion of unlimited computing capabilities especially when we look at it from a storage point of view. It takes some of the major issues that businesses have to deal with such as scalability and constant maintenance of computing devices. Cloud computing in my opinion in future will be the main mode of computing in businesses because as much as there are disadvantages, the good outweighs the bad. It is also the best option for small businesses because they do not have to incur huge costs buying equipment, some of which at times will be idle. This means that businesses can utilise the money elsewhere. Finally, as more and more businesses adopt cloud computing the more the research in the area will advance resulting in better services that businesses can adopt.

Reference List

Amazon. (2016). Amazon Web Services, Inc. Retrieved from https://aws.amazon.com/?nc2=h_lg

Armbrust et al, Michael. Above the Clouds: A Berkeley View of Cloud Computing. UC Berkeley RAD System Lab, 2009.

Babcock C (2010) Management Strategies for the Cloud Revolution: How Cloud Computing Is Transforming Business and Why You Can’t Afford to Be Left Behind. McGraw-Hill, New York

Dubey, A. and D. Wagle, 2007, Delivering Software as a Service, The McKinsey Quarterly, May, 1-12.

Gens, Frank. “Defining “Cloud Services” and “Cloud Computing”.” IDC exchange. September 23, 2008. https://blogs.idc.com/ie/?p=190 (accessed September 1, 2010).

Ling, Qian, Luo Zhiguo, Du Yujian, and Guo Leitao. “Cloud Computing: An Overview.” CloudCom. Beijing: Springer, 2009. 626-631.

Macquarie Telecom. “The Business Perspective on Cloud Computing.” White Paper, Sydney, 2009.

Mell P and Grance T (2011) The NIST Definition of Cloud Computing National Institute of Standards and Technology Archived at htp://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf

Obrutsky S. (July, 2016). Cloud Storage: Advantage, Disadvantages and Enterprise Solutions for Businesses. Retrieved from https://www.researchgate.net/profile/Santiago_Obrutsky2/publication/305508410_Cloud_Storage_Advantages_Disadvantages_and_Enterprise_Solutions_for_Business/links/5792976508ae33e89f7cc136/Cloud-Storage-Advantages-Disadvantages-and-Enterprise-Solutions-for-Business.pdf

Omoniyi Temitope. O. (2010). Cloud Computing for Business. Retrieved from https://minerva.leeds.ac.uk/bbcswebdav/orgs/SCH_Computing/MSCProj/reports/0910/omoniyi.pdf