Digital Firm and Cloud Computing - Essay Example

? Digital firm is a notion that refers to the use of digitally enabled mechanisms, in a business organization on all its operations such as its relations with customers and employees, and suppliers. The purpose of using digitally enabled tools in a business organization is to increase the efficiency in which the organization conducts its affairs (Wang, 2012). Cloud computing is a concept that supports the application of digitally enabled tools in a business organization. Cloud computing refers to the use of computer software’s and hardware’s delivered as a service through a network, commonly the internet. To effectively carry out its function, cloud computing uses a remote server that comprises of software, hardware and a user’s data. Cloud computing comes in different forms, and example includes; SECaas, which refers to security as a service, IaaS, which deals with infrastructure and DBaas which mainly deals with databases. (Wang,, 2012). Cloud computing has five essential characteristics, and they are (Smoot and Tan, 2012), 1. Capability of pooling resource. Cloud computing can pool the resources of the providers computer in order to serve a high number of customers, through the use of a multi-tenant model. This model has different virtual and physical resources which are dynamically assigned according to the requirements of the customer. 2. It has a broad network access. The cloud computing system has a variety of capabilities which are available over the host network, and accessed through devices that promote the use of heterogeneous thick and thin platforms such as laptops, work stations and mobile phones. 3. It has an on-demand self-service system: The system allows the customer to control its capabilities such as server time, network storage system, and other application, and it does not need the human intervention of the system producer/ provider.The system allows customers to configure, deploy and obtain cloud computing services by their own initiative through guidance from the cloud computing catalogues. On this note therefore, developers of cloud computing technology have templates which contain configurations that the customer can use in setting up the system. These templates contain information on the cloud computing infrastructure, and information concerning servers contained in the system. These servers can perform specialized work like hosting of websites and databases (Hwang and Fox, 2012). 4. It has a measured service system. The system allows customers to monitor, control, report and provide a feedback concerning the use of the technology. The system also automatically controls and optimizes the use of the computing resources by creating a lever on the metering capability of the system. The creation of the lever on the metering capability of the system is dependent on the type of service the clouding system provides. These services might include provision of a system that allows customers to create active online accounts with the organization, storage or processing services (Hwang and Fox, 2012). 5. Its elasticity is rapid. The cloud computing system has capabilities that are provisioned elastically, and in some instances, its capabilities are automatically provisioned. Cloud computing provisions that are available for provisioning are unlimited, and it is possible to appropriate them in whichever quantity, and time is not an issue. In my own opinion, there are only some specific elements of the cloud computing system that are used in a digitally enabled business environment. The type of cloud computing system that is applicable in a business set up is the software as a service system (SaaS). In this system, it is possible to enable customers an access to the databases and applications of the software. In this system, the role of the providers is to manage the platform, and infrastructure upon which the software is installed on. This system allows a business organization to reduce the costs associated with its information technology operations. This is because customers pay, as they use the software. Another reason as to why the software reduces the costs associated with the running the operations of an information technology system is that it outsources the software and hardware maintenance and support services to providers of the cloud system. This gives a business organization the opportunity to spend money on other information technology related costs, and not on the maintenance of software and hardware’s of the organizations information technology system. This system is also conducive for a business organization because it allows the setting up of updates without the need of installing a new software system. The only disadvantage of this system is that data is stored on the server of the cloud system provider. This makes the system to risk the disaster of an authorized access to the service, comprising information contained in the system (Bauer and Adams, 2012). During the research, one of the main issue identified is that the cloud computing model does not guarantee the privacy of its users. This is because companies hosting the system can monitor the communication between the customer, and the host company. They also have the capability of accessing data stored by the customer. An example involves the NSA program that had a communication record of approximately ten million telephone calls made by Americans. This program was in conjunction with Verizon, and AT and T. Cloud computing system complicates the privacy of data because the operations of the cloud system provider, and data belonging to the customer are on different data centers, or systems. This makes the service provider to have the capability of accessing data that is on the cloud. Another issue that arose during research is that the cloud computing system is vulnerable to various legal challenges. These challenges emanate from areas of trademark infringements, privacy and security of data. For instance, in the legal challenges that emanate from the use of cloud computing technology is the notion of custodian and possessor of data (Bauer and Adams, 2012). For instances, if the cloud company has the possession rights of data, laws will be applicable that are different if the company was the custodian of the data. In conclusion, cloud computing companies provide their services according to the model in which a customer orders. For instance, platform as a service and infrastructure as a service, are the most basic models ordered by customers. In the year 2012, the International Telecommunication Union included Network as a service, and communication as a service as important models of the cloud computing system. References: Bauer, E., & Adams, R. (2012). Reliability and availability of cloud computing. Hoboken, N.J.: Wiley-IEEE Press. Hwang, K., & Fox, G. C. (2012). Distributed and cloud computing: from parallel processing to the Internet of things. Amsterdam: Morgan Kaufmann. Smoot, S. R., & Tan, N. (2012). Private cloud computing consolidation, virtualization, and service-oriented infrastructure. Waltham, MA: Morgan Kaufmann. Wang, L. (2012). Cloud computing: methodology, systems, and applications. Boca Raton, FL: CRC Press. Top of Form Bottom of Form Read More