Creating Profitable E-Business - Cloud-Based Computing - Essay Example

Creating Profitable e-business: Cloud Based Computing Introduction With increasing technological advancement, businesses are becoming reliant on technologically based innovations to enhance their prospects and boost their profits. The companies are increasing profits by cutting costs that they would incur in the past through the application of technological innovations. Moreover, the world is changing from an expansive globe that needed the use of various conventional methods to do businesses as the internet continues to reach more and more people. Most importantly, the increased numbers of people, people who form the customer and client base of businesses, are continuously using the internet to access services. It could be the reason the businesses have decided to apply digital models to their business structures. One such digital application that is increasingly finding its way into businesses is cloud computing. As defined by Mell and Grance (2011), cloud-computing is a system for permitting expedient, global, and access on demand to an interlinked group of computing assets that can be configured, availed and released in the quickest time possible without the application of much effort or interaction from the provider of the service. In other words, the International Business Machines Corporation defines cloud computing as a provision on-demand computing resources (IBM, n.d.). The computing resources or assets include servers, networks, and storage, just to name but a few. Due to the demand and spread of cloud computing, there is what is termed as the cloud-computing trend. The cloud computing trend looks at the ways in which cloud computing is been applied by businesses. Hence, as per the research conducted, it has been forecast that large corporations will continually develop hybrid clouds, the mobile cloud platform will grow this year, and there will be design of provision systems like Saas, Paas, and Iaas as clients increasingly develop interest in utilising applications in cloud computing (Netsuite, 2015). Cloud Computing Analysis a. Benefits Cloud computing benefits are well defined and documented. There has to be a reason start-up and established companies are increasingly becoming reliant on cloud computing related services. Hence, it has to be appreciated that cloud computing offers various benefits. Sosinky (2010) outlines these benefits in a clear and succinct manner. He notes that cloud computing provides the accessibility of business resources through the network by use of conventional methods that permit clients to access whatever the resources have to offer on an individual basis. The cloud computing services ensures auditing and assessment of the utilisation of the cloud service, which allows informing of the client. The service allows customers to access the computing resources with no form of interaction between the customers and the personnel. Hence, time is saved. In addition, the model permits the putting together of numerous resources into a single system, which backs multiple clients accessing them. The benefit of this system is that both virtual and physical structures are assign and reassigned as necessary. Cloud computing also ensures that usage of the needed resources is simplified because some requirements such as licences are done away with. The required resources are also availed in a quick and changeable manner. Besides, the resources can be increased and decreased as is deemed necessary without affecting the customer negatively. For business, it provides a cheaper option because cloud systems or networks function at greater efficacies and enhance usability. Furthermore, the businesses are in a way having IT personnel whom they have not employed to operate the infrastructure. The model is dependable due to the scale of services it can offer. Through cloud computing, the Quality of Service is guaranteed through the contract the business enters into with the provider (Sosinky 2010). b. Opportunities As seen, the benefits are numerous; hence, with more benefits, there are opportunities. Cloud computing offers varying opportunities for business. The opportunities that are presented by cloud computing include the provision for a means to get the most out of mobile based applications because most of them have reduced power indigenous assets. There is the opportunity for the robust participation and practise in the adjustment of the cloud-computing model for businesses. Another opportunity exists for Small and Medium Enterprises along with emerging businesses to make use of the reliability provided by cloud computing. The reliability includes short marketing time and implementation. The infrastructure provided by cloud computing avails opportunity for enhanced attractiveness, output, and competitiveness by businesses to utilise. The applications availed by the mobile platform of cloud computing provide opportunities for businesses, large, small, or emerging to get to their clients on broader basis. In the end, businesses have the opportunity to develop their clouds as they see fit (Machi, 2010). c. Challenges One of the biggest challenges of cloud computing is the security risk associated with it. For as long as networks exist across computing infrastructure, there is always the probability of a compromise to these systems putting crucial, personal, and secret information at risk. Hence, customers are always voicing concerns about the security risks that the model offers. There is also the mentality where probable clients have a negative perspective on cloud computing. As a result, they differ with the likelihood of having third parties keeping their information and data. The reasons given are that third party access to data and information increases the likelihood of unknown users obtaining the same, which is against their will. The energy consumption consumed by the servers is an issue because it might increase the cost. For example, Amazon data is reported to have consumed 53 % of the whole cost (Sajid & Raza, 2013). There is also the challenge with reliability where clients question the reliability of provided cloud computing service. d. Threats The threats associated with cloud computing cannot be assumed because it is through their assessment that cloud computing is enhanced. For one, providers of Infrastructure as a service are few. Then, there could be improved infrastructure of cloud computing systems elsewhere. The businesses’ relying on external providers is a threat. In addition, the costs of setting up the cloud-computing infrastructure are high. There is also sarcasm and assumption of the technological influence of cloud computing. Cloud computing is threatened by interfaces that are not secure. Further, there could be employees with ill intentions like stealing of client data because a lot of it from multiple sources is stored on one platform. Lastly, data and information could be lost and compromised through deletion (Cloud Security Alliance, 2010). Grembergen and Wim (2007) opine that in-house IT is a model where the business has its IT department, which provides information technology services to the company like buying purchasing of servers and placing them at a location away from the premises. Buy-in-house implies the usage of information technology as a utility. Dropbox: It is easy to utilise, reliable, and allows accessibility from a range of software like Android, Ubuntu, and Mac. It synchronises all files from all computing devices and stores any file (Mitroff, 2015). Onedrive: Provided by Microsoft. It is inbuilt in the operating system of Windows. Any file can be stored, but it needs applications to allow usability on other operating systems (Mitroff, 2015). Google Drive: It is a wholesome office collection. It has many services such as spreadsheet and word processors and free storage. Hence, it permits editing of any saved data or information (Mitroff, 2015). Amazon Cloud Drive: It is a pay-per-use service by Amazon. It is divided into a storage plan for all types of files and another for photographs. It needs applications to function in operating systems like iOS (Mitroff, 2015). Box: It was developed for enterprises. It permits sharing of documents and files with co-workers. It also allows managers to allocate roles and even give suggestions on the work of the employees. Privacy is ensured through determining who sees the files (Mitroff, 2015). Case Study: RehabCare Group a. Usage of Cloud Computing based applications and services RehabCare Group is one of the biggest supplier of services in the rehabilitation sector of health in the United States. However, the issue is that it found it challenging in terms of reliability. Reliability in terms of obtaining and storing treatment details like the period of treatment and the therapy that was utilised. The treatment information is of value to the company in order to improve its services and pass on reports to insurance providers. However, the company has found cloud computing as a vital resource. As noted, the application of cloud computing by RehabCare Group began way back in 2001 where the company initialised a system of storing data was done to several key servers from computers in native hospitals by each therapist. However, this proved tiresome and tedious (Babcock, 2011). However, the development of cloud computing has come in handy. The company has developed a conventionally created software on iPod that runs through the Application store that is run by Apple. The application harmonises information and data through the utilisation of software and servers availed by a third party. The third party is known as Casamba. The application is used by therapists to time the time they spend on the treatment of one patient, along with medical details and the usage of equipment. The information and data it gathers is systematically uploaded to the servers. The advantage of this hybrid cloud computing is that it is flexible. Flexibility is provided by its portability. Again, therapists can use it in whatever devices, big or small to gather data depending on the input method such as note taking where tablets are necessary (Babcock, 2011). For the company, obtaining the billing details without necessarily having a cashier cuts costs for the company and saves a lot of time for the clients. In addition, the system is used to time when patients should see a doctor and it has modules that seize treatment notes. The good thing about this is that it has enhanced reliability and saved on time. Additionally, it has ensured that employees handle as many clients as possible in an efficient manner, which is beneficial to the company because it has increased its clientele base. More clients mean more revenue. It has also cut on the infrastructure cost that would have been needed to set up a lot of servers and computers to key in the gathered data and information (Babcock, 2011). It has become a fundamental asset to the company because it has cut down on the number of rejected insurance claims for the clients by insurance companies. The reason being, there is evidence in the form of data stored on the servers of the network operated by a third party known as Casamba. In addition, due to the success of the cloud computing that is already in use, the company has decided to broaden its use. It wants to incorporate a platform known as Force.com that is operated by Salesforce. The main agenda behind the incorporation of this cloud computing service is to change the mode of admission of new clients. Under the platform, the company seeks to do away with much of the paperwork that clients have to fill during the admission process of a client. The idea behind the cloud computing mobile platform is to have an interface that allows customers to enter information from any mobile device. After that, the platform, Force.com, captures and controls the usage of the data and information. Hence, Force.com functions as a host. The main idea is to utilise all computing devices provided by Apple Incorporation and in the end run the same on other devices from other companies (Babcock, 2011). In addition, the company wants to utilise Force.com to aid the employees in the gathering of data and information on how a client was referred. It notes that it is referring that the company gets its clients. The primary aim of the company is to determine why several institutions refer clients to their company more than other (Babcock, 2011). b. Shortcomings in the use of Cloud-based computing by RehabCare Group As one might expect, every technological application has its downside. Thus, the cloud-based computing platform that RehabCare Group has been using has also led the company to experience some shortcomings. For one, the company has been using servers provided by Apple data hub, Casamba, and Force.com. While updating the operating system of Apple data centre, the timers that RehabCare Group had been using for timing the treatment time in its software was incapacitated. In addition, the company would have liked to add a new feature in its software to serve the clients better; however, the servers that Casamba is using to host data and information from the software cannot support the new feature. The Software as a Service (SaaS) that RehabCare Group has been using is too particulate. The specificity hinders its provision as a one in all cloud-computing model. Hence, there is the company still experienced some intricacy because in case the company would like to alter the software, it has to liaise with all of its cloud computing providers individually; thus, leading to some complications on how to modify the software (Babcock, 2011). c. Recommendations to the Company Based on the nature of services that the company provides it would be prudent to have it use a single third party to host all of its data and information rather than having several of them. The advantage included here would be to reduce the chances of any leakage of personal information that may be harmful to the client. The more the number of third parties, the higher the likelihood of such an event occurring. In addition, the company should widen the scope of computing devices that its software can run on. Bearing in mind the usability of Android running computing devices, the reliance on iOS provided by Apple increases the risks just in case it fails, for example during an update as experienced by the company before. Further, the company should develop a mechanism for ensuring that if it wants to update its software, it can do so after liaising with all the cloud-computing platform providers at one go instead of doing so individually. c. Alternative Cloud Based Solutions In a detailed article by Forbes, Columbus (2014) reports that around 83 % of healthcare services providers use cloud computing services. Among these users of cloud computing services, the article also alludes that Software as a Service is the most common with a 66.9% usage. RehabCare Group evidences the usage of Software as a Service. However, the company can use other alternatives. One area of concern is the utilisation of several third parties for its cloud storage services. However, these can be changed by using the VCE Vblock systems to use it as a congregated model to support all of its needs in one service. The advantage of this system is that it can be controlled to solve the varying requirements and needs over time. The company should also make use of Back up as a Service, which it lacks within its portfolio. It provides benefits like the active backup of data and information as it is collected without manually doing so (EMC Healthcare Solutions, 2013). Conclusion It can be opined that cloud-computing has benefits such as ensuring business resources accessibility, simplifies their usage, efficiency in time, offers flexibility, reliability, outsourcing of skilled personnel without necessarily having to employ them, assurance on the quality of service, and dependability due to its diversity in application. For cloud-based solutions, the VCE Vblock systems offer an alternative due to its congregation of multiple services into one. References Babcock, C., 2011. 4 Companies Getting Real Results From Cloud Computing. [Online] Available at: http://www.informationweek.com/4-companies-getting-real-results-from-cloud-computing/d/d-id/1095455 [Accessed 04 May 2015]. Cloud Security Alliance, 2010. Top Threats to Cloud Computing V1.0. [Online] Available at: https://cloudsecurityalliance.org/topthreats/csathreats.v1.0.pdf [Accessed 04 May 2015]. Columbus, L., 2014. 83% Of Healthcare Organizations Are Using Cloud-Based Apps Today. [Online] Available at: http://www.forbes.com/sites/louiscolumbus/2014/07/17/83-of-healthcare-organizations-are-using-cloud-based-apps-today/ [Accessed 04 May 2015]. EMC Healthcare Solutions, 2013. IT-AS-A-SERVICE SOLUTIONS FOR HEALTHCARE PROVIDERS: Best Practices for ITaaS in Healthcare Environments. [Online] Available at: http://www.emc.com/collateral/white-papers/h12153-itaassol-healthcare-providers-wp.pdf [Accessed 04 May 2015]. Grembergen, v. & Wim, eds., 2007. Implementing Information Technology Governance: Models, Practices and Cases: Models, Practices and Cases. Hershey: IGI Global. IBM, n.d.. What is Cloud Computing?. [Online] Available at: http://www.ibm.com/cloud-computing/us/en/what-is-cloud-computing.html [Accessed 05 May 2015]. Machi, E., 2010. Living in the Cloud: Opportunities for Entrepreneurs. [Online] Available at: http://miter.mit.edu/articleliving-cloud-opportunities-entrepreneurs/ [Accessed 04 May 2015]. Mell, P. & Grance, T., 2011. The NIST Definition of Cloud Computing. [Online] Available at: http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf [Accessed 05 May 2015]. Mitroff, S., 2015. OneDrive, Dropbox, Google Drive and Box: Which cloud storage service is right for you?. [Online] Available at: http://www.cnet.com/au/how-to/onedrive-dropbox-google-drive-and-box-which-cloud-storage-service-is-right-for-you/ [Accessed 04 May 2015]. Netsuite, 2015. Five Trends Transforming Cloud Computing. [Online] Available at: http://www.netsuite.com/portal/resource/articles/cloud-computing-trends.shtml [Accessed 04 May 2015]. Sajid, M. & Raza, Z., 2013. Cloud Computing: Issues & Challenges. International Confrence on Cloud, Big Data and Trus, Issue 2013, pp. 35-41. Sosinky, B., 2010. Cloud Computing Bible. 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