Cloud Computing for Management Information Systems - Essay Example

Cloud Computing Cloud Computing Introduction Cloud Computing means the management of information by multiple users in virtual systems, which offer such services. According to Knorr and Gruman (2013), “cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends ITs existing capabilities,” (Web). Utility computing and operations outside firewalls are some of the definitions, which attempt to give meaning to the concept of cloud computing. However, many experts in the IT field agree that the meaning of cloud computing generally connects with the idea of enhancing the capacity on the internet fly without spending money on the acquisition of new technological infrastructure. This involves adding the capacity of existing internet systems without resolving for the option of additional software and other systems or personnel. Subscription-based systems are some of the common examples of cloud computing. Economic Impact The economic impact of cloud computing involves the many advantages that include adding efficiency in systems, providing employment, reducing the amount of costs of operating certain systems, and many other factors that connect with the general development in the spheres of life that require the use and application of internet services. In practice, cloud computing has enabled the shifting from traditional models of operations to highly developed systems and services that add the advantage of costs to systems and processes. According to Koeppel (2013), one key advantage of cloud computing is that “the number of advantages and applications seems almost limitless,” (Web). In the modern world, both formal and informal engagements are assessed in terms of their capacity to reduce costs while achieving high quality results. Therefore, the positive economic implications of cloud computing can be analyzed from the many positive outcomes that have been enabled by its application. Cloud computing enables businesspersons “the flexibility of connecting to their business anywhere, any time,” (Queensland Government, 2013, Web). One of the ways that have been used to illustrate the economic impact of cloud computing has involved the comparison of the SaaS over the conventional hosting services. The use of cloud computing implies that the customers only have a single application, which is maintained for the purposes of completing the required tasks. The costs are therefore lowered significantly translating into certain advantages on the behalf of the users. In this regard, it might be argued that the use of the cloud computing services promote efficiency of processes and tasks through a reduction of costs. Cloud computing is often utilized in the form of outsourcing. The development of cloud computing has enabled many individuals and groups to engage in various forms of outsourcing that have immense economic benefits. Businesses, governments, organizations, and individuals have relied significantly on outsourcing to achieve great aspects of success that would not have been met without the application of cloud computing. This implies that cloud computing, which is a key enabler of outsourcing is one of the most dominant and efficient applications that contribute positively to the economic success of many businesses and organization. Outsourcing makes it possible for many companies to focus on the key issues that affect their organizations while limiting the kind of expenses that would have gone to internal overheads. Gradually, cloud computing has changed the way organizations handle their businesses due to the provision of user-friendly services that do not require complex manipulations and management in order to achieve a high element of efficiency. In this regard, the element of risk associated with the use of cloud computing services is significantly lesser when compared to the other conventional systems of data management and information processing. The modern world is increasingly concerned with the development of better working environment and the transfer to virtual systems as opposed to the rigid conventional practices. The management and harmonization of processes are key indicators of growth. These factors contribute to the general growth of economic systems and other elements of growth that relate to the concept of economic growth. Alternative perspectives suggest that cloud computing has significant disadvantages. According to Vizard (2012), “outsourcing via the cloud is an inevitable economic disruption,” (Web). The process of businesses switching into third party operations using cloud-computing systems will eventually lead to loss of jobs. Although he acknowledges the fact that more jobs could be created within the cloud computing system, he argues that the number of jobs that would be created will be significantly lesser than those that will be lost in the process. Accordingly, countries such as the United States, Britain, Germany, France, and other parts of the developed world where cloud computing has taken effect are likely to experience seasons of economic challenges resulting from high rates of unemployment. As a matter of fact, employment rates are key determinants of the level of economic growth. Technical Impact A general look at the IT infrastructure shows that the system will enhance the efficiency of systems by incorporating advanced procedures and operational mechanisms that will make it easier for users to access information from the cloud. For instance, the use of the cloud to perform payroll duties is one of the technical developments that cloud computing has introduced in the world of accountancy and finance. The implication of such developments show that most of the data to be processed by the systems will be done through controlled systems with advanced software that benefit from frequent updates. One characteristic of cloud computing systems is that they are frequently updates for the purpose of keeping pace with technology. This implies that the users of such clouds will benefit from technical synergies that connect with the aspect of technological advancement. Cloud computing generally entails the aspect of innovation. There will be a radical shift to improved systems that promise efficiency and quality as made possible by the technical synergies of cloud computing. As a result, the quality of services will be highly improved, which will enhance the reception of customers for the products. In this manner, it will become appropriate to develop a strategy that entails the incorporation of various technical advantages in order to keep pace with the high expectations of the market. Improvements in the technical aspect of business will lead to some major changes on the market because customers will begin to demand for high quality services and not just products. Research on the trends on the market show that IT services consumers have increased their levels of interest in IT services. As a result, innovations have continued to match the kind of client with respect to the level of technical knowledge. One of the areas that will experience significant improvement is customer experience. This level of experience will generally come about because many of the clients with a taste of value will seek to adjust to the high technical expertise and the quality of services that will be offered by companies or businesses. The process of advancement to positions of high service will depend on the progress that companies or clients make in the integration of cloud computer services into their systems. Naturally, some companies may take advantage of the technical systems more readily than others. The technical advantages that will be offered by the companies are likely to affect the operations of the airline in a more positive way regarding the fluid nature of the industries. Technical advantages that relate to the cloud computer systems have a feature of faster speed, connectivity, which are required for effective communication of useful information within systems that operate flexible schedules. Generally, some of the issues that attend to the development of the industry have to be observed through a combination of the positive impacts in comparison with the possible flaws of the business. Systems are important pointers to standards and image of companies and businesses. The rating of a company’s profile is connected, in part, with the kind of technical systems that it employs to manage and control its processes. These include processes of communication, the management of date, the storage of information, and general efficiency of the various processes within the departments that make up the system. As such, companies that will shift from the reliance of old systems to the systems controlled by cloud computer systems will have higher chances of ranking higher in profile as compared to those that will stick on the technical processes that base of conventional systems. Such realities will have the likelihood of affecting the brand and general market performance of the business. Security Generally, the transition from old systems of information storage to cloud computer systems has raised questions of data safety. Companies, managers, businesses men, individuals that have expressed reluctance to move into the new systems are largely driven by fears about the dangers of compromising the levels of security on the data and information in the cloud system. The possibility of hacking increases with the reliance of a common system to run and manage information by different users. Many users are wary of the challenges that result from increased issues of security issues and attempt by different means to challenge the security levels that are put in place by the managers of the cloud computer systems. This fear is also increased by the fact that some of the information that may be managed by the cloud computer systems is of a high secretive nature and may result in serious breaches of law if not properly handled. Cloud Security Alliance (CSA) identified some notorious threats that affect cloud security. One of the threats was data breaches. According to Samson (2013), “a single flaw in one clients application could allow an attacker to get at not just that clients data, but every other clients data as well,” (Web). One demonstration of data breaches involved the use of some specialized machines that could detect encrypted keys of some of the private users on the cloud. The demonstration was considered as a major proof of the high levels of vulnerability of information stored in cloud systems. The invention of the machine also indicates that more machines or systems can be invented for detecting the encrypted keys of unsuspecting users. Such a reality could pose major challenges to the overall security of the cloud systems and compromise the levels of privacy and confidentiality of the users. A second threat that was detected involved the loss of data through deliberate attacks or mishandling by inexperienced losers. Hackers develop various ways of infiltrating systems in order to obtain crucial information of to destroy certain records in the information. In this regard, it becomes important to consider the fact that some of the issues that relate to the worries of IT consumers relate to business matters and information about certain confidential information. Mishandling such information can result in ruining of business life of companies. However, many competent handlers of cloud systems invest large sums of money in developing shields that make it difficult for external parties to infiltrate into information managed within the cloud systems. Cloud systems that offer high levels of assurance about their IT systems are more likely to attract more users as those that compromise on the levels of protection within the understanding of security matters. Security in IT is a matter that requires frequent updates, which requires companies to maintain high levels of vigilance in order to protect the information of the users. Special considerations are usually put in place when assessing the matter of security of IT services in line with cloud computer systems. Opportunities and Challenges Cloud computing has various opportunities and challenges that relate to the manner in which information from various aspects of the society is managed, processed, and shared. All aspects of the societies function through the exchange, storage, and management of information. The development of the cloud computer systems will provide employment opportunities to the many people who operate in different areas of the society such as business, education, management, and private interests. Increasing demand for the cloud computer systems will require the development of efficient systems that are suitable for the tasks of handling the systems. As such, the development will require the hiring of many IT specialists to manage the cloud computer systems in the many areas including advisory, technical, and security areas of the business. Cloud computing can also be used for the purposes of organizational reorganization. The virtual aspect of management would provide good opportunity for businesses, groups, and organizations to revise their ways of operation in order to accommodate the new changes (Jackson, 2011). Many times, organizational change or reorganization comes with increased efficiency in terms of service delivery and efficiency of systems. It is important to consider the fact that some of the issues that connect with the aspect of organizational change revolve around specific aspects of structures that align with the demands of duty and the needs of the clientele. Organizational structure is an important feature for any organization and any adjustments often create far-reaching effects particularly on the positive side. With regard to challenges, the implementation of the cloud computer systems may meet resistance from certain conservative managers, workers, or members of the society who may view it as a disruption to the normal order of carrying out duties. It is human nature for some people to develop resistance to change. Cloud computer systems are an example of change that has developed within the world of IT. Some of the reason for such resistance may include the fear by seasoned employees to lose the value of their experience in the old systems, which gives them some level of advantage over the younger employees. Another reason could relate to the loss of employment due to the structural changes that might follow the development. Another challenge in the adoption of the cloud computing systems is that they are vulnerable misuse or mishandling by inexperienced workers. Incompetence in new technologies is a common occurrence in organizations. Conclusion Ultimately, cloud computing systems are known to enhance the inherent capabilities of IT systems. The subscription-based systems often enhance the capabilities of IT in real time when used over the internet. Examples of subscription-based systems also include pay-per-use systems, which also increase the potentialities of IT. These systems have the capacity to save the users and subscribers of the logistical inconveniences, which usually attend to the general application of the IT applications. As such, it becomes necessary to assess the importance of cloud computing in terms of how it has enabled the development of efficiency and cost-effectiveness in the usage and provision of technological services. The continuing adoption of cloud computing systems demonstrates a shift towards modern systems that illustrate the level to which the world has reached in terms of internet capabilities. References Jackson, K., L. (2011). The Economic Benefit of Cloud Computing. Forbes. Retrieved from http://www.forbes.com/sites/kevinjackson/2011/09/17/the-economic-benefit-of-cloud-computing/ Knorr, E., & Gruman, G. (2013). What cloud computing really means. InfoWorld. Retrieved from http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031?page=0,1 Koeppel, H. (2013). The advantages of cloud computing must be clarified to be implemented. TechTarget. Retrieved from http://searchcio.techtarget.com/opinion/The-advantages-of-cloud-computing-must-be-clarified-to-be-implemented Queensland Government. (2013). Benefits of cloud computing. Queensland Government. Retrieved from http://www.business.qld.gov.au/business/running/technology-for-business/cloud-computing-business/cloud-computing-benefits Samson, T. (2013). 9 top threats to cloud computing security. InfoWorld. Retrieved from http://www.infoworld.com/t/cloud-security/9-top-threats-cloud-computing-security-213428 Vizard, M. (2012). The Economic Impact of Cloud Computing. ITBusinessedge. Retrieved from http://www.itbusinessedge.com/cm/blogs/vizard/the-economic-impact-of-cloud-computing/?cs=50751 Read More