Cloud Computing In Todays Organizations And The Future - Essay Example

? CLOUD COMPUTING IN TODAY’S ORGANIZATIONS AND THE FUTURE goes here] [Your goes here] [Due the paper] Cloud Computing in Today’s Organizations and the Future Introduction Technology is making progress at a rapid speed in the present world. New technologies related to the field of information technology are facilitating individuals and organizations in carrying out personal and professional activities. The world has become dependent on the use of technology so much that it seems impracticable to achieve success without the use of latest IT related tools and technologies. Cloud computing is one of such IT technologies that helps individuals and businesses gain an access to a wide range of IT applications using internet on any computer system (Skiba, 2011, p. 266). Using cloud computing, users can use a wide range of software and data management applications using cloud services. As Schauland (2011) states, “surfacing in late 2007, cloud computing is used to allow services used in everyday practice to be moved onto the Internet rather than stored on a local computer”. Cloud computing offers a number of considerable benefits to business professionals, such as, cloud-based accounting and billing, project management, website hosting, and document storage. Along with these benefits, cloud computing also provides management services to all small and large companies, such as, customer relationship management and database management services. “Cloud computing provides computation, software applications, data access, data management and storage resources without requiring cloud users to know the location and other details of the computing infrastructure” (Singh, Kharbanda, & Kaur, 2012, p. 945). Companies just need to contact cloud services providers to get these services. Some of the main companies that provide cloud services to individuals and companies include Cisco, Windows, Google, and Salesforce.com. All of these companies are highly professional and provide various cloud computing services to users all over the world. In this paper, we will discuss the ways cloud services providers help small and large companies in carrying out their IT related business activities. Description of Cloud Computing Within AT&T NextGen Inc. is a software company that uses AT&T for cloud computing services. AT&T is an American telecommunication company which also provides cloud computing services to businesses to manage their business operations. For example, NextGen uses cloud computing for customer relationship management because of which the company is enjoying increased customer satisfaction and retention levels. AT&T also manages database application and operating system software of the company. Some other services that NextGen gets from the cloud services provider include data management by AT&T internet data center, data security, audit controls, network management, storage infrastructure and server management, self-service computing, and web portal. The company pays monthly bill to AT&T on per use basis through credit card. There are no upfront charges or termination fees which shows the consumer-orientation of AT&T cloud services. The ready-made hosted infrastructure of AT&T cloud services provides a number of considerable benefits to NextGen some of which include quick response to business needs, reliable data management, improved customer service, reduced need of long implementation cycles for employees, and reduced capital expenditures. NextGen uses Linux operating system for management of computer processes and Apache version 2.4 as the web server. Apache is the world’s most efficient and customizable HTTP server application. For secure data management, the company uses My SQL which provides scalable and reliable performance to users. The network structure being used by the company is simple. The company used wireless access point which has provides simple configuration options to the users, for example, allowing or restricting broadcast SSID to associate, enable or disable the access point functions, and mandatory and disabled Wireless Equivalent Privacy. Moreover, the company has enabled VPN using vShield Manager 5.1 and an external routed vDC network. The company uses desktops to run business matters. However, every employee is provided with a separate laptop which he/she can take away with him/her when going for client visits. The IT department of the company is the main department because it deals with the development of software applications. The company provides two-weeks training to new employees to make them accustomed with their job responsibilities. Similarly, the company provides regular training to existing employees to make them updated with the latest developments in the field of information technology. The company has implemented a proper disaster recovery management plan to ensure data security in case of any calamity. Benefits of Cloud Computing for Organizations Cloud computing is a rapidly emerging trend in the field of information technology (Kamra, Sonawane, & Alappanavar, 2012, p. 577). Cloud computing provides a number of benefits for SMEs and large corporations. Let us discuss those benefits in some detail in order to know the significance of cloud computing in today’s business world. Benefits for SMEs Cloud computing services produce many significant outcomes for small and medium sized organizations. The outcomes range from efficient business process to the facility to store huge amounts of data into the database without any issue of data loss. Some of the main positive aspects of using cloud service for SMEs include effective monitoring of business projects, reduced IT expenditures, efficient data calculations and record management, reduced software installation and maintenance needs, streamlined business processes, unlimited data storage capacity, improved data management, and easy access to information. Benefits for Large Organizations As for SMEs, there are also many benefits for large corporations regarding the use of using cloud services. The benefits cover almost all business processes from data and information management to improved customer service. Some of the key benefits for large corporations include reduced cost of installing technology infrastructure, increased customization and flexibility of business processes, improved ability to find scalable solutions to business problems reduced capital costs,, improved ability to do instantaneous reporting, integrated customer service and marketing, increased data reliability, reduced cost of employee training, increased mobility and collaboration, facilitated access to information for employees, improved customer relationship management, and easier group collaboration (Miller 2009). How Cloud Computing Increases Business Efficiency? Cloud computing provides services to clients using three deployment models which include public, private, and hybrid clouds (Sohail 2012). Some of the specialty areas of cloud computing include flexible and reliable mobile access, marketing automation, sales force automation, management of business information, in-depth business reporting, call center management, and point-and-click customization of applications. “Many organizations are attracted to cloud computing as an ICT” (Tosic, Wada, Guabtni, Lee, & Liu, 2011, p. 1). For businesses, cloud computing offers solutions to the problems related to data management and sustainability of business operations. For example, cloud services help businesses in data storage, workload shift, improving organization of business processes, project management, and provision of customer service. Companies can store their important files, such as, spreadsheets, Microsoft word files, and audio files on the cloud through internet and can access them whenever required. They do not have to bear additional costs of buying heavy systems for the storage of huge volumes of data because the cloud offers all of these services to its users almost free of cost. The users of the cloud have to pay the fee to the cloud services providers on monthly basis in return of getting the benefits. Similarly, companies can also enjoy website hosting using cloud computing. Cloud eliminates the need to buy physical server for the hosting of websites. The reason is that companies can make use of cloud hosting to manage their websites. An added benefit of using cloud hosting is that companies can increase or decrease the required bandwidth in accordance with the needs of the business. Cloud services providers also help companies in managing their projects (Helland, 2013). Project management is not an easy task as it includes a number of activities to be done with continuous care and responsibility. Some of the main needs of project management include timely access to information, management of project related data, and working in form of teams to achieve better results. Cloud computing makes it easy for companies to do effective project management. For example, it helps them in moving on the right direction, efficiently sharing and collaborating, working faster, accessing information from anywhere, quick view of all project activities through an interactive dashboard, and storing all information in the cloud’s database system. Moreover, in projects where employees regularly need to upload and share project related files after editing, use of cloud services is a good and viable option. Cloud computing also eliminates the need for the installation of many hardware and software products. As compared to the companies that do not make use of cloud computing to manage their business processes, the clients of cloud services providers do not have to worry about the hardware and software installation and failure issues. Usually companies need to install, customize, test, and run all software and hardware products on their own which not only takes a huge amount of time but also keeps with it the threat of failure at any time due to any reason. However, using cloud services, companies do not face such problems and concentrate only towards making a good use the applications. According to Turner (n.d.), cloud computing helps users in a sense that it eliminates the problem of hardware or software failure. Using cloud computing, companies do not need to spend extra money on customization of software applications. Moreover, they also do not worry about the risk of software failure and data loss (Zaman 2009). The cloud services providers provide well-managed and customized software applications to their clients which reduces the need of software customization for users (Alves 2012). Cloud computing also eliminates the business need of hiring professional IT experts to manage the information system properly. An information system is a collection of computer programs, methodologies, algorithms, and mechanisms that process raw data into useful information. Companies use this information to carry out different business activities. Information systems incorporate the use of software and hardware products and latest IT tools and technologies to make organizational system efficient and fully functional. Some of the main areas or fields for which information systems are mostly used in organizations include software engineering, system analysis and design, artificial intelligence, health informatics, decision making, database management, project management, and knowledge management. Companies usually give a high amount of money to IT professionals to ensure the reliability and proper working of the information system. Cloud-based information system eliminates this cost of companies by managing all issues related to the system on its own. “Cloud promises real costs savings and flexibility to customers” (A. Mathur, M. Mathur, & Upadhyay, 2011, p. 2478). Any company, whether small or large, does not need to hire IT professionals and spend high amounts of money on them for management of the information system. Moreover, the cost of developing the information system is also reduced using Cloud-based information system. The reason is that companies can use the pre-designed and customized IS using cloud instead of designing a new information system. Companies just need to upload their business information on the system using internet and the cloud services providers bear the responsibility of managing all information. Workload shift is another benefit of cloud computing for businesses. Usually companies have to do a lot of information processing to carry out business activities which not only requires a large number of employees to accomplish the tasks but also takes makes employees tired at times. Using cloud-computing services, employees can have some time to regain their energy levels because the service providers take the responsibility of carrying out many of the business processes related to data processing, data management, and sales and service management. As Strickland (n.d.) states, “local computers no longer have to do all the heavy lifting when it comes to running applications”. This statement shows that not only do the employees feel relaxed due to workload shift but also the computer systems get more space to store more files. The reason is that all heavy processing of information is done at the cloud’s end which makes it easy for employees to focus on other job responsibilities properly. For example, if we talk about managing the information system of a company which has stopped working due to some unexpected reason, the employees of the company have to deal with all IS related processes, such as, maintenance of existing systems, analyzing the usefulness of existing systems, taking measures to remove bugs from the existing systems, and using new tools and technologies to make the system better. Cloud-based information system eliminates all such needs by proving companies with a fully functional and free of errors information system managed and maintained solely by the cloud services provider. “Cloud in conjunction with other technology trends such as virtualization, makes it possible to create large and highly automated sets of computing resources” (Gilenson 2012, p. 1). For businesses, some other benefits of using cloud computing services include low capital investment, ease of integration with proprietary systems, user friendly interface of software applications, digitization and proper management of business records, and improved data accessibility. Proper organization and categorization of business records and improved database management not only help managers in keeping track of business performance but also helps in taking correct business decisions based on available information. Another benefit of cloud computing for small and large companies is that it increases the overall efficiency of the business. This happens when cloud takes over the responsibility to manage key business processes, such as, IT and customer service management. Managers and employees get more time concentrate on other business processes which results in increased levels of productivity and efficiency. Moreover, cloud services providers also provide a user-friendly and customizable interface of the software applications to the clients which helps in using cloud services with ease. Here, one point to be noted is that the interface of the software applications, such as, database and inventory management software is usually different from that of the original interface being provided by the licensed applications. The reason is that cloud services providers aim to facilitate the users by providing them with easy to use interfaces. Because of this factor, clients prefer to use cloud services instead of putting money on difficult to understand software applications. Another benefit of using cloud services is that the applications do not have any error in them and the services provider is responsible for managing flaws and errors in applications. For example, if a bug occurs in any of the application at any point of time, clients do not need to do any effort to remove those bugs, rather the services provider is responsible to ensure smooth running of the application. If we talk about the expense of using cloud services, we can say that cloud computing needs clients to pay a set amount of fee to the supplier every month. Cloud services providers cut down many of the capital and expenditure costs for small and large companies. Moreover, there is no expense related to design and management of software applications because the supplier of cloud bears all such expenses. The Future of Cloud Computing The rise of the composite cloud is the future destination of cloud computing. Software engineers and computer science professionals are focusing on the development of iCloud to find new ways of developing appliances and software applications. Along with steps towards the future of cloud computing, computer science professionals are also moving towards addressing the issues like less application visibility for clients, lack of security customization, and loss of control due to increased dependency. Data security is the biggest concern for cloud computing clients because sending of private data to the cloud is not considered safe as yet. Similarly, increased dependency on cloud services also raises a concern for companies regarding the use of cloud computing. Professionals are also working on the development of cloud-based management information system. Although the major developments have taken place regarding cloud-based MIS, but still there are some issues that need to be addressed in order to bring this technology in use of all types of companies. Some of the main benefits that Cloud MIS will provide to clients include secure data management, lower capital expenditure, greater flexibility and storage, and lowered operational expenditure. The concept of this technology was developed a couple of years ago but more and more developments are occurring to make this technology more useful and reliable for companies and organizations. However, the main focus is towards making data storage more secure for the clients because sending data to cloud for management is the biggest concern regarding the use of cloud services. Recommendations For the owner of a small household appliance repair firm, some of the recommendations regarding the use of cloud services are as follows: Contact two to three suppliers of cloud computing services to find the best one Outsource IT services to the cloud services provider Make a list of the business processes to be managed by the supplier Form an agreement with the supplier regarding the use of services Conclusion Summing it up, cloud computing is an internet-based technology that helps people access a wide range of IT tools and technologies through internet using any computer system. Cisco, Google, AT&T, and Salesforce.com are some of the main companies that provide cloud computing services to clients. Low cost of implementation, optimized runtime processing, provision of energy efficient servers, improved efficiency, decreased expenses, standardized architecture, and increased reliability are such benefits of using cloud-computing services that make cloud computing an attractive and reliable choice for SMEs and large organizations. References Alves, R. (2012). Cloud Based Computerized Maintenance Management Systems (CMMS) and Small to Medium Sized Businesses. Retrieved from http://ezinearticles.com/?Cloud-Based-Computerized-Maintenance-Management-Systems-(CMMS)-and-Small-to-Medium-Sized-Businesses&id=7301345 Gilenson, S. (2012). Successful Cloud Management Needs a New Generation Of Tools. Retrieved from http://ezinearticles.com/?Successful-Cloud-Management-Needs-a-New-Generation-Of-Tools&id=7223826 Helland, P. (2013). Constraints in an environment empower the services. Communications of the ACM, 56(1), 50-59. Kamra, V., Sonawane, K., & Alappanavar, P. (2012). Cloud Computing and It’s Pricing Schemes. International Journal on Computer Science and Engineering, 4(4), 577-581. Mathur, A., Mathur, M., & Upadhyay, P. (2011). Cloud Based Distributed Databases: The Future Ahead. International Journal on Computer Science and Engineering, 3(6), 2477-2481. Miller, M. (2009). Cloud Computing Pros and Cons for End Users. Retrieved from http://www.quepublishing.com/articles/article.aspx?p=1324280 Schauland, D. (2011). What is Cloud Computing?. Retrieved from http://www.wisegeek.com/what-is-cloud-computing.htm Skiba, J. (2011). Are you computing in the clouds? Understanding cloud computing. Nurs Educ Perspect., 32(4), 266-268. Singh, K., Kharbanda, I., & Kaur, N. (2012). Security issues occur in Cloud Computing and there Solutions. International Journal on Computer Science and Engineering, 4(5), 945-949. Sohail, M 2012, Cloud Computing, viewed 02 December 2012, http://ezinearticles.com/?Cloud-Computing&id=7168084 Strickland, J. (n.d.). How Cloud Computing Works. Retrieved from http://computer.howstuffworks.com/cloud-computing/cloud-computing.htm Tosic, V., Wada, H., Guabtni, A., Lee, K., & Liu, A. (2011). Management Towards Reducing Cloud Usage Costs. Retrieved from http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=6102258&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D6102258 Turner, S. (n.d.). Benefits of Risks of Cloud Computing. Retrieved from http://www.aabri.com/OC2012Manuscripts/OC12079.pdf Zaman, I. (2009). Cloud Computing - The Advantages & Disadvantages. Retrieved from http://ezinearticles.com/?Cloud-Computing---The-Advantages-and-Disadvantages&id=3397944 Read More