Cloud Computing: a Novel Concept or Old Ideas Recycled - Example

Cloud computing: a novel concept - or old ideas recycled? Introduction A common perception of ‘cloud computing’ is still evolving, and the concepts and terminology used to define it still needs clarifications. News pertaining to cloud computing that comes into limelight can be vague and as it often fails to capture the level to which cloud computing represent or entails, reporting how the business houses are making solutions available in the cloud or how cloud computing can act as the ‘next big thing’ or ‘the way forward’. Hence a clear description of the benefits provided by cloud computing is yet to be discovered (Weiss, 2007). Cloud computing in simple terms is defined as “a model for delivering information technology services in which resources are retrieved from the internet through web-based tools and applications, rather than a direct connection to a server” (Investopedia, 2014). In the simplest terms it is often described as the storing and accessing of programs and data over the internet instead of storing the same in local hard drives. The term ‘cloud’ is just used as a metaphor for internet. The initiation of cloud computing can be traced back to the era of flowcharts and presentation that were used to represent gigantic server-farm infrastructure. However, the notion of cloud computing changes when it comes to corporate as some companies use it as a Software-as-a-Service (SaaS) whereas few firms subscribe to an online application so as to access programs over the internet. According to reports, around 80% of the large companies in the US are using cloud computing. The report even predicts that within the next few years the industry is expected to generate a whopping $100 billion every year (Griffith, 2013). This report therefore seeks to investigate about the actual truth behind the emergence of cloud computing, i.e. whether it is an old concept that has been recycled or truly an innovative and novel concept. Apart from that this report will also throw light on the features of cloud computing, the reason behind the increasing adoption rate of cloud computing among the corporate. Lastly, on the basis of the discussion and comprehensive analysis the study will ultimately draw a conclusion to the study reflecting the key points and addressing the central question of the study. Features of Cloud Computing With the increasing turbulence in the external and internal business environments, companies are seeking ways by which they can carry out their operations effectively. In the similar way, the operational activity of a firm is getting hindered for non availability of certain resources and one of them is the record management. In the early days, companies used to store data in physical forms, but later the same was changed to digitized formats where companies converts physical documents in digital form stores the same in local hard disk. Yet, the issues of data storage seem to persist among the corporate and to surmount these challenges the notion of cloud computing emerged. Cloud computing not only solved the issue of data storage, but also introduced the concept of centralized data storage. This allowed firms to store data in a central location and access the same from anywhere across the world (Dialogic, 2010). Hence, the level of convenience, increased to a great extent. Figure 1 – Cloud Computing (Source: Dialogic, 2010) One of the biggest advantages of cloud computing for the MNCs is that it allows companies to reduce costs pertaining to data storage, data access and data transfer as all the branches of a company can fetch data from the central location. Some of the key features of this technology are detailed below: - On-demand capabilities: - A business can have access to the services at any point of time and from any convenient place. However, apart from that a business also has the opportunity to get on-demand services. For example, the company can ask the client or provider to customize the application and can also ask for additional features. Broad network access: - The application can be used with any kind of computing devices such as laptops, smart phones, desktops, tablets etc. This mobility is extremely attractive for the business houses as it provides them with the opportunity to carry out the business more efficiently. Rapid elasticity: - The application has the ability to suit the most immediate needs of a firm. Measured service: - One of the most essential features of cloud computing is the price affordability. The pricing mechanism used for this type of application is ‘pay according to use’. The cloud service provider has the ability to measure the processing bandwidth, storage levels as well as the number of accounts being used by the company. Hence, measured services can be availed and thus cost can be easily controlled. Resource pooling: - Cloud computing enables the staff members and employees of the firm to access data at any time and from anywhere in the world. This feature is highly attractive and one of the success drivers of this application (Zimara, 2013). Reasons of Adoption Cloud computing is in the news for quite a while now, but still it seems that the idea of cloud computing is not clear enough for the non-techie audience. Hence, there is an obvious requirement of spreading awareness about cloud computing. Yet, it has been observed that huge numbers of companies are either planning to implement cloud computing or have already implemented it into their system of operation. There are various reasons behind the high adoption rate of cloud computing among the business houses. It should be also noted that the rationale behind the adoption of this technology differs from one company to the other. For example, telecommunication companies are principally using it to minimize their cost of data management and properly organize vital information. The shift from traditional software framework to internet based application has gained steady momentum over the last decade. Looking forward, the next few years of cloud computing is more prospective and it seems that new collaborative ways will emerge. Traditional business applications have always been expensive and complicated in nature. Furthermore, the variety and amount of software and hardware required to run the application is literally daunting. As a result of that, companies often require experts so as to test, configure, secure and update the application. With cloud computing this annoyances are removed. Apart from that most of the online portals such as salesforce.com, which are best known for offering cloud computing solution, provide ‘pay what you need’ options. This helps in reducing the overall operation cost as well. In cloud computation, the application is updated automatically and helps companies to use the most updates features and that makes them technologically updated. The level of convince is very high as it can be accessed from anywhere in the world and whenever the user wants. This expunges the concept of time limitation. Nowadays, business houses are running almost all the necessary applications such as customer relationship management (CRM), accounting, HR etc. over cloud. The latest developments in the cloud computing is making business applications even more collaborative and interactive. The business applications are trying to resemble the simplicity and interactivity of the popular consumer applications such as twitter and facebook. A study carried out by IBM regarding the adoption rate of cloud computing among the companies, have found that organizations which have already implemented these application, gained strategic edge over the competitors and have experienced double revenue growth. The survey also revealed that it not only drives efficiency and cuts cost, but making the business more organized (IBM, 2014). Pros & Cons Cloud computing is growing at a rapid pace and companies of all sizes and shapes are adapting this application. Therefore, it is obvious that cloud computing will have certain advantages and disadvantages. Some of the pros and cons of the technology are detailed below: - Advantages Cost Efficiency: - It is one of most cost effective method pertaining to data storage and data access (Salesforce, 2013). Limitless Storage: - There is no limit of data storage which offers the company with the option of storing as much data as they want. Backup and Recovery Options: - Another advantage of cloud computing is that it allows backup and recovery options. Hence, the risk of data loss minimizes greatly. Apart from that some of the other key advantages of cloud computing are easy access to information, automated software integration and quick deployment among others. Disadvantages Technical Issues: - The application is purely based on the technical infrastructure of the service provider. Hence, a small error in the process can lead to serious dysfunction. Security Issues: - Since the data storage and access is entirely web based, there are huge concerns over the security of data. Data theft and hacking can seriously hamper a business. Therefore, in confusion, likewise any application, this is also characterised by several pros and cons. In the next section, the study will evaluate the emergence of cloud computing in a comprehensive manner. Cloud Computing: A novel concept - or old ideas recycled According to Gartner senior analyst, Ben Pring “cloud computing is all the rage. “Its become the phrase du jour”, but the problem seem to lie somewhere else i.e. most of the peer has provided different definition of this factor (Knorr and Gruman, 2010). The cloud is a familiar cliché, but when it is being amalgamated with the word computing, the meaning turns fuzzier and bigger. A number of scholars therefore does not believe or acknowledges cloud computing to be a completely new technology or innovation. Some vendors of cloud and analysts emphasizes on the fact that cloud computing is simply an updated version of utility based computing such as virtual servers. However, another set of scholars firmly believes that the notion of cloud computing becomes evident when the company seeks to add capabilities to its existing IT infrastructure and add options by which companies can access data on the go. A number of scholars have emphasized on the fact that cloud computing is presently at an early stage and is still developing. However, they believe that its root can be traced back to the time when the concept of utility computing emerged. Utility computing is simply the amalgamation of two different computing concepts. In the similar way, cloud computing is the amalgamation of two computer application i.e. management of and internet (Knorr and Gruman, 2010). Hence, in simple words, it can be stated that cloud computing is the integration of two existing applications into one new form. According to Gruener (2010), although cloud computing is a concept that has been developed by following the principles of utility computing, but at the same time it is also true that cloud computing concept has provided various new opportunities which are absolutely new. For example, sharing computer over the cloud is a new concept. In the similar way, cloud computing is heading towards sky computing where the network will encompass clusters of cloud thereby increasing the scope and range to a great extent. Thus, it is obvious that it is an old concept, but has been transforming into an entirely new idea. Conclusion The study was meant to analyse whether cloud computing is a novel concept or old ideas recycled. The study revealed that the concept emerged from an old idea but with the course of time the concept is further developing. Therefore it can be concluded that cloud computing is completely not a new technology but obviously a new form of software. Furthermore, cloud computing is also the ‘way forward’ for the business houses to gain an edge over the competitors and drive efficiency in the organization. In simple words, it can be stated that cloud computing is a new idea developed from the traditional systems. Reference List Dialogic, 2010. Introduction to Cloud Computing. [pdf] Available at: [Accessed 10 February 2014]. Griffith, E., 2013. What Is Cloud Computing? [online] Available at: [Accessed 10 February 2014]. Gruener, W., 2010. Cloud Computing: New Name, Same Old Tech - Toms Hardware. [online] Available at: [Accessed 10 February 2014]. IBM, 2014. IBM Study Reveals Businesses Using Cloud Computing for Competitive Advantage Can Generate Double Revenue and Profit Compared to their Peers. [online] Available at: [Accessed 10 February 2014]. Investopedia, 2014. Cloud Computing. [online] Available at: [Accessed 10 February 2014]. Knorr, E. and Gruman, G., 2010. What cloud computing really means. [online] Available at: [Accessed 10 February 2014]. Salesforce, 2013. Why Move to the Cloud? 10 Benefits of Cloud Computing. [online] Available at: [Accessed 10 February 2014]. Weiss, A., 2007. Computing in the clouds. Networker - Cloud computing: PC functions move onto the web, 11(4), pp. 16-25. Zimara, S., 2013. The Five Essential Characteristics of Cloud Computing. [online] Available at: [Accessed 10 February 2014]. Read More