The Application of Cloud Computing in Businesses - Assignment Example

Cloud Computing Introduction Cloud computing is a form of technology that enables omnipresent, on-demand and convenient access to a network of shared pools of computing resources. In simple terms, cloud computing denotes anything that uses the internet to deliver hosted services. It allows users to run programs and applications on several computers simultaneously. When viewed from an IT perspective, cloud computing specifically refers to computer hardware machines called servers. These servers are interconnected through different types of communication networks like wide area networks (WAN), local area network (LAN), intranet or the internet (Pearson and Yee, 2013). The users, at a charge, are given the ability and rights to access the servers and use their processing capacity to satisfy their computing needs such as data storage and running of programs and applications. This therefore means that one has the ability to run an application remotely from any location in the world without using a personal computer. Cloud computing covers all pay-per-use or subscription services that extend computing capabilities in real time through the internet. Cloud computing has several fundamental characteristics namely; rapid elasticity, on-demand self-service, broad network access, resource pooling, and measured service (Buyya et al, 2013). Broad network access is whereby computing power is availed through the network and can be accessed through simple technology like mobile phones and laptops. On-demand service is the instance where the user is allowed to unilaterally access computing capabilities e.g. server time, as they require without interacting with the service provider (Buyya et al, 2013). Resource pooling is an instance where the service provider allows for their computing power to be used by multiple users (Buyya et al, 2013). Rapid elasticity is whereby the service provider allows users to provide computing capabilities elastically depending on the demand of a particular service at a specific time. Measured service, as the name suggests, occurs when the service provider controls the use of their computing resources through placing a metering mechanism. This enables them to monitor, control, and optimise the functions of their resources. This paper places an acute emphasis on the benefits, disadvantages and challenges of cloud computing. It also focuses on the future prospects of cloud computing in organisations with a focus on how cloud computing results to change in them. Benefits of Cloud Computing The benefits accrued to a business using cloud-computing service are discussed below. By using cloud-computing platforms, businesses benefit in a number of ways. Cost Efficient Cloud computing is a very cost effective way of satisfying the IT requirements of an organisation in terms of usage, maintenance and upgrade. Through cloud computing technology, organisations save on the costs incurred during purchase of conventional desktop software. This is because cloud computing reduces on the costs incurred through purchase of licenses for the multiple users within an organisation. Moreover, several service providers offer pay-as-you-go services and 24-hours subscriptions. Therefore, resources can be paid for only when one is using them. This is advantageous over the conventional ways where one has to purchase the service as a whole despite the fact that they will not necessarily use the service regularly or the entire package. An organisation also saves on funds used for the maintenance of their servers and software updates (Buyya et al, 2013). Nearly Unlimited Storage Cloud computing gives users a storage facility that is almost unlimited. When working in the cloud, one can store as much information as they wish since the storage capacity of the cloud is almost imperishable (Buyya et al, 2013). Therefore, users have fewer worries when it comes to running out of storage space for their information. This beats conventional personal computer and desktop use where one has to constantly increase storage space (Sosinsky, 2011). Backup and Recovery When working in the cloud, the process of backing up data is more simplified when compared to doing the same in a physical personal computer. All the data is stored in the cloud. Therefore, in instances where data is lost, the process of restoration is relatively simpler when compared to doing so on computer hardware (Buyya et al, 2013). Moreover, service providers in the cloud have devised ways through which data can be monitored and managed. This means that they have sufficient competence in handling data recovery. For example, in 2013, the Aberdeen Group discovered enterprises using the cloud have the capability of recovering data in an average of 2 hours. This is almost four times faster than conventional ways used by enterprises that work outside the cloud (Gray, 2014). Automatic Software Integration When working in the cloud, integration of software is automatic. Therefore, efforts need not to be channeled into customization and integration of software and applications in accordance to an organisation’s preferences; it occurs automatically. Cloud computing also gives the users the ability to easily customize their options and make them as relevant as possible to their operations (Gray, 2014). For example, a survey on the IT aspect of organisations in the UK indicated that most companies devote about two and a half weeks every month to management of software updates and security. Companies working in the cloud have free server maintenance and security update services hence saving time and resources for the organisation. This ensures the users’ interface is up-to-date at no cost. Easy Access to Information This is one of the major advantages of working in the cloud. Once a user has registered themselves in the cloud, they get the ability to get information on anything from anywhere in the world as long as there is internet connection. Therefore, working in the cloud beats all geographical constraints (Gray, 2014). The flexibility that comes with working in the cloud enables users to devote more time to other aspects of their lives; cloud computing improves work-life balance. A study in 2013 indicated that about 40 percent of the working force in the US is willing to forgo a portion of their salary for them to be allowed to telecommute. Cloud computing makes this easily possible (Jamsa, 2013). Easy Deployment When an organisation opts to work in the cloud, setting up the system takes only a matter of minutes or months depending on the complexity of its operations and the diversity of its technology. Moreover, integration of new users is almost instantaneous hence saving time spent during waiting periods. Since deployment is very easy, rolling out cloud solution is also easy hence resource use is minimal (Jamsa, 2013). Economies of Scale Working in the cloud easily achieves the economies of scale since there is an increase in output while the number of employees remains constant or even reduces. The cost incurred per unit is therefore highly reduced (Jamsa, 2013). Information Security Cloud computing makes it possible to access information even if the machine in which the information was stored is lost or damaged. Working in the cloud therefore ensures there is ample security when it comes to information. Environmental friendly Organisations working in the cloud have a highly reduced carbon footprint since they only use the space they require for their servers (Jamsa, 2013). Studies indicate that organisations working in the cloud have a 30 percent reduction in energy consumption and carbon emissions. There is even more reduction in carbon emissions and energy consumption if the servers are off-site. Disadvantages of Cloud Computing The disadvantages of cloud computing service are discussed below. These make for some of the disadvantages of the technology and its use by businesses. Technical Hitches Cloud computing mainly revolves around machines, computers and software. This makes the system highly vulnerable to periodic dysfunctions. This is as a result of technology being highly prone to technical issues like power outages and jamming. Even if an organisation has the best servers and computers, a problem might occur with the internet connection. Consequently, the system fails since there has to be constant internet connection for the system to be logged onto the organisation’s servers (Mahmood and Saeed, 2013). Security Breaches For an organisation to work in the cloud, they have to register. The registration process involves the surrender of extremely vital and sensitive information about the company to the service provider (Mahmood and Saeed, 2013). This, in itself, presents a very high level of risk since the service provider might use the information maliciously. Privacy is also presented as an issue concerning security. The information submitted to the service provider could fall into the arms of unauthorized users. They can, therefore, be able to access passwords and system clearances hence placing the organisation at a very high level of vulnerability to sabotage. Vendor lock-in and dependency Cloud computing has the disadvantage of dependency on the service provider. In business terms, this is referred to as “vendor lock-in”. The term lock-in culminates from the fact that the user normally experiences hardships in migrating from one provider to another since the process involves the transfer of huge chunks of data from the current provider to the prospected provider (Mahmood and Saeed, 2013). This is not only a very cumbersome process but also a very risky move since vital information is exposed to more than one provider. Therefore, organisations are advised to carefully audit potential service providers and take them through an extensive scrutiny process before picking one (Pearson and Yee, 2013). Challenges Even though cloud computing provides businesses with solutions at low costs; it is faced with a number of challenges just like any other technology (Buyya, 2011). Some of the challenges raise serious concerns among organisations using the technology while other challenges are trivial and can be handled easily. The transition of companies to cloud computing clearly shows that businesses are increasingly embracing the technology (Furht & Escalante, 2010). The smooth transition into using the technology is however affected by the challenges involved in using the technology. Some of the important challenges of cloud computing are discussed below. The researcher also provides probable solutions to some of these challenges. Security and Privacy Security of data and privacy is the main challenge facing cloud computing. Majority of businesses are usually keen on how cloud computing addresses this security concern. The main concern is the fact that valuable enterprise information and data will be residing in servers outside the corporate using the technology. Many business organisations are concerned of the safety of their data in cases where the company’s trusted internal firewall is not involved in the securing of this data. Various attacks and hacking to cloud infrastructure may affect multiple clients using the cloud computing service even in cases where only a single site is attacked. The solution to mitigating this type of risk is the use of security applications such as firewalls, encrypting files and systems on the cloud services. In addition, investment in security hardware which may be useful in tracking unusual and suspicious behavior across the servers and investing in data loss software to retrieve any data that may be lost in the event of an attack to the cloud. Billing and Service Delivery Companies that provide cloud computing services are at times faced with challenges when assessing the cost of their services to clients. This challenge arises due to the demand nature of the services. Therefore, cost assessment and budgeting of the service may be very challenging unless the providers of the service have comparable and good benchmarks to offer for their services. The scalability and availability of the service are not adequately guaranteed by the service-level agreements (SLA) from the providers (Cloud Tweaks, 2012). Businesses, therefore, are reluctant at times to switch to cloud computing platforms without the guarantee of strong service quality and clear costs of the engagement. Availability and Reliability Due to the technicality of the technology and heavy infrastructure needed for the same, cloud providers may be faced with the challenge of providing round-the-clock service resulting to frequent outages. The modern business environment is characterised by businesses being heavily dependent and reliant on computer applications, software and services to ensure the smooth running of business functions. These outages and downtime makes many businesses heavily dependent on IT platforms to frown from using the technology. The solution to this challenge by providers of cloud services is the integration of third party or even internal tools to be used in the monitoring of the service at all times. Moreover, the supervision of usage, performance, SLAs, robustness and reliability of the entire cloud services results to efficient and better service delivery. At the end of the day, both the provider and clients using the service remain happy and satisfied with the cloud. Bandwidth Cost and Performance It is true to say that businesses using cloud computing spend less money by saving the cash that they would have invested in the purchase of hardware (Cloud Tweaks, 2012). Companies, however, spend more money in purchasing bandwidth from internet service providers (ISPs). This cost can be low for small applications but significantly high for applications which are data-intensive. The delivery of complex and intensive data over networks often requires stable networks and sufficient bandwidth (Cloud Tweaks, 2012). Due to this, a majority of businesses may remain skeptical to embracing the use of the cloud unless there is a reduction in the overall cost incurred for the use of the service. Future Prospects of Cloud Computing in Organisations Even though laden with various challenges and disadvantages, cloud computing still has a bright future with various prospects that seek to improve the technology and ensure efficiency in the delivery of cloud computing services to businesses. The prevalent saying that technology changes but the industry survives is thus true when analysing the prospects and future trends of cloud computing (Cloud Tweaks, 2012). The future of the cloud computing platform is thus bright as some of the bottlenecks to the technology are currently being tackled. Computer scientists and cloud computing providers are working on a daily basis to ensure the seamless delivery of cloud computing services to clients at all times (Furht & Escalante, 2010). Private Clouds The move towards secure private clouds in the future is perhaps the greatest news for those using the cloud. These private clouds will neither be in premises nor publicly shared services with others. The clouds will be private and managed by a transparent third party. This new system is perceived to be more cost effective in the long-run. For critical applications, a secure, non-shared and highly private cloud will be used to parse all processes in line with the compliance requirements. Cloud service providers IBM and Microsoft are optimistic that a move in this line will improve the entire service delivery and reliability of the cloud (Josyula et al 2012). Initial strategies to provide on-premises private cloud environments have been under prior limitations of time overruns and costs but once these challenges have been tackled, the future of the technology is brightened. Increase of Brokerage of Cloud Services There is a prediction by Gatner that IT organisations are presumed to be increasingly assuming and investing in brokerage of cloud services (Hamm, 2012). These organisations provide cloud based services and solutions to small and medium enterprises. The IT organisations are also responsible for overseeing the consumption and provisioning of complex and heterogeneous cloud applications and services (Hamm, 2012). This move gives hope to businesses in the sense that eventually, there will be a reduced cost in the cloud computing services and increased efficiency from providers of the service due to competition in this line of business. Personal Cloud The new PCs (personal clouds) is expected to eventually replace the current cloud system of running the cloud services on severs across the globe. This relatively new concept currently being tested by Google will enable individuals store and access their personal content and services such as personal preferences at a much personal level (Hamm, 2012). This service will entail a unique collection of web destinations, services and connectivity that will act as the building blocks of the communication and computing services (Hamm, 2012). The main advantage of these PCs is that domination of the cloud by a singular vendor or technology will be abolished. Cloud and mobile will thus be one as the PCs will shift the focus from the client’s device to the cloud based services which are delivered across the devices. Cloud and Mobile Cloud and mobile are expected to be united in the future. Currently, it is interesting to note that a majority of cloud projects are driven by the need of mobile access to the back-end-applications. Mobile applications are often connected to cloud-based backend services that are elastic and can easily respond to mobile engagements by clients while shielding the user data center from the traffic (Hamm, 2012). At the moment, nearly all software-as-a-service (SaaS) applications own mobile clients further giving proof to the model and the prospects it holds for the future (Jamsa, 2013). Conclusion Cloud computing is a technology that heralds limitless possibilities for many businesses across the globe. The cloud service is promising to organisations as it enables the businesses cut down on costs. The application of cloud computing in businesses has a number of benefits, challenges and disadvantages to both the clients and providers of the service as aforementioned. Even though cloud computing is faces by a number of cons; it is important to note that the benefits that come with cloud computing surpass the challenges and disadvantages. The future of the technology thus has prospects as improvement of the technology will lead to a reduction of the challenges facing cloud computing therefore resulting to efficiency and reliability of the entire cloud platform. The popularity of the cloud is envisioned to result to further reduction in the cost of using the cloud computing service. By being optimistic and working in cohesion, clients and providers of the cloud service are entitled to harnessing greater value from the cloud. References Buyya, R., Broberg, J., & Gościński, A. (2011). Cloud computing principles and paradigms. Hoboken, N.J., Wiley. Buyya, R., Vecchiola, C., & Selvi, S. T. (2013). Mastering cloud computing foundations and applications programming. Waltham, MA, Morgan Kaufmann Cloud Tweaks. (2012). Top Five Challenges Of Cloud Computing. 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