Cloud-Based System for S-mart Retail Company - Case Study Example

Cloud-Based System for S-mart Retail Company Department: University: Address: Date: Introduction By definition cloud computing also known as the “cloud” technology refers to a computing paradigm that connects a pool of large systems either in a public or private network to enable dynamic sharing of scalable infrastructure for data, storage, and applications contained in the particular systems. The contemporary world has in the recent past experienced rapid technological developments and innovations that have led to increased computing cost, application hosting, delivery and content storage. However, with the advent of the cloud computing technology, all the named aspects of computing have been significantly reduced. The current business environment is characterized by increased data and information that require large storage systems, effective communication practices, and high level of security. To ensure achievement and maintenance of competitive ability of any particular business organization, cloud computing has always been the best option. The Internet and online business have taken over the business marketing and product sales functionalities and activities. Almost 95% of the world population are on the internet and therefore, to ensure that any particular business achieves and maintains a large customer base, conducting business functionalities over the internet is an essential undertaking in the business today. However, due to increased number of customer and organization’s data and information at a high-level security, cloud computing technology or systems is the better option. However, regardless of cloud computing technology having many benefits and advantages to business organizations, the technology has its risks and bottlenecks that include the security of data hosted on the cloud. The main aim of this paper is to prepare a report for S-mark Retail Company that informs and advice the management regarding t6he issue of cloud computing, its benefits, risks, the system design and the crucial components. Overview of Cloud Computing Technology Cloud computing technology enables your business organization, employees, and customers to efficiently access information anytime anywhere their location. The cloud technology overrides the traditional way of accessing information that required that you be located in the same location as your data storage system or device [1]. The cloud computing technology does not require the physical presence of the data server to access information but rather requires a system set-up whereby the server is hosted on the Internet or the “cloud.” The second important aspect of the cloud computing technology is the cloud service provider. The business is required to find a service provider who will host both the software and hardware systems that contain the business applications. Cloud computing is essential for a business organization like S-mart because it will ensure significant decrease of the cost required to purchase hardware and storage devices for a large amount of data. S-mart has a large number of stores in Australia and therefore, a large amount of data and information for all the clients in each store [2]. Additionally, the company has a large number of employees whose data and information require storage in large databases. Since purchasing all the required hardware and storage systems for a large amount of data is costly compared to cloud computing system, it is recommended that the company embrace and adopt the technology to ensure increased output and reduced cost of production for profitability and productivity. Cloud computing technology has one major requirement that it cannot function without, internet connection. The internet connection is required since it enables you to access the cloud because after establishing the internet connection the organization can access any information or data that they have housed in the cloud. The organization can either choose to have a wireless or a wired internet connection to enable effective functionality of the cloud computing technology. There are four most common types of clouds that an organization can choose to adopt depending on their business objectives and activities. The cloud types include; • Public cloud- This type of cloud is designed such that any subscriber with access to the cloud and Internet connection can access. The type is good for international organizations. • Community cloud- This type of a cloud is designed in such a way that two organizations with similar cloud requirements can share the cloud. • Private cloud- A private cloud is designed specifically for only one business organization whereby only the organization has the access rights. This is the cloud type suitable for S-mart Company because it will ensure a high level of security for both the customers and employee’s information. Customers will be registered and given access rights similar to the employees. • Hybrid cloud- The hybrid cloud type refers to a combination of any two or more cloud types. This type is also suitable for S-mart as it will ensure flexibility and reliability of the new cloud computing system technology. Benefits of Cloud Computing The cloud computing technology has a large number of benefits to any particular business in the contemporary business environment. S-mart being a large and international retail company, it will experience a variety of benefits and business advantages from the cloud computing technology considering the organization’s business functionalities and activities. The major benefits that the company will enjoy from cloud computing include; • Effective communication- Communication is a very essential and critical aspect in any business organization. Lack of effective communication within any business organization can result in low quality production hence leading to low revenue income. S-mart has a large number of employees and many branches or stores that require communicating effectively through a reliable communication system. Cloud computing ensures a free and constant flow of information between departments that ensure timely and high-quality production and service delivery. Additionally, the cloud computing technology will enable the company to communicate effectively to their customers and clients throughout Australia hence ensuring maximum customer satisfaction and maintenance of a large customer base. • Cost effectiveness- Cloud computing requires a low cost in implementing and maintaining the system technology. Therefore, the cost of production will be significantly reduced since the cost that could be used by the organization in implementing traditional hardware and storage devices can be disbursed in other essential business activities resulting in a large increase in productivity and increased profitability for the business. • Effective and reliable supply chain process- Supply chain management is crucial for any business since it determines the level of success in routine supply activities. S-mart will enjoy the benefit of a reliable and efficient supply chain management by moving to the cloud. S-mart is a company that has many retail locations across Australia and therefore, by moving to the cloud crucial supply chain activities such as data control and data tracking will be more accurate and easier [3]. Collecting market data and capturing the real-time status along the supply chain will benefit the business and ensure a streamlined and high functional supply chain for the retail company. • Easier and reliable customer interaction- Smoother and easier shopping experience are the priority of all customers in any business organization. The cloud technology will offer an easier and effective customer interaction in S-mart company because, for example, customers do not have to manually conduct their shopping or even check for availability of a particular product. Online shopping will be available with the cloud computing technology that will connect customers direct to any retail store of the company through the Internet and enable them to query, do shopping and also view all the available products and services. This will ensure maximum satisfaction and improved quality of services. Risks of Cloud Computing Although cloud computing technology is a game changer in the retail industry, some risks accompany the cloud technology. Among the major risks of cloud computing technology are security issues with the technology. Data security and privacy is a major risk when moving to the cloud computing technology. When S-mart decides to host its confidential data and information on the cloud, it will involve the transfer of a considerable and significantly amount of the organization’s control over the information and data to the particular service provider. However, ensuring that your service provider understands the organization’s privacy and data security needs could reduce the data security and privacy risks. The other significant risks of cloud computing that S-mart could encounter include; • Business continuity and data availability. With the cloud computing technology, internet connectivity is a critical requirement. Therefore, in the case of internet connectivity loss, data and information hosted in the cloud will not be available. Therefore, users will not access any data or information, and that is a big risk especially for a busy retail business company like S-mart. • Environmental security- The risk of environmental security involves the issues that relate to attacks. Cyber attacks and hacking are big risks considering the large concentration of users and the computing resources in the cloud environment hence a large number of security threats. However, S-mart can ensure that they seek a cloud computing service provider with secured access controls, configuration, and patch management controls, as well as vulnerability assessment practices to reduce the environmental security risks [3]. Cloud-Based System Design The diagram below shows the recommended design of the cloud computing system for S-mart. The diagram clearly shows all the components of the design required for effective and reliable functionality of the cloud-based system for the company. The design demonstrates a service-model that applies SaaS (Software as a Service) design because the company only need to access applications, data, and information from the cloud to ensure low IT costs. Additionally, the design ensures that all the data and information activities such as storage, publishing, sharing and other crucial activities are done from the cloud to ensure effectiveness and efficiency in the business functionality. The design is a service-oriented architecture because S-mart business requires each of the applications in the system to operate in a service manner which the users can either access locally or in the cloud [4]. Design Justifications The design consists of three major components with each component having the required components interconnected to the major opponents of the cloud computing system of S-mart Retail Company. The following is a description and justification of the components as shown in the design diagram above. • Client computers- this component represents the computers that will be used by the S-mart’s users in every store or retail shop. The computers contain data and application software that will enable the users to access any service, information, and data hosted on the cloud. It is important to understand that the client computers refer to both the employee’s and the customers computers or mobile phones that are compatible with the Internet connectivity settings. Without the client computers, the system cannot function because access of the services and data housed on the cloud will be impossible. • Enterprise component resources- the enterprise component refers to the overall application server and the point share facility for the entire company. The component is important because it will enable the data and information from the cloud to be shared among the stores and retail shops for the entire company. • The cloud component refers to all the resources that the cloud computing service provider will use for the S-mart organization. This is where all the data, services, and information regarding the organization will be hosted for access. The clients will be sending a request through the enterprise applications and SharePoint and then receive the feedback from the cloud through the same enterprise channel. Conclusion The cloud computing technology has received attention in the recent past and the current business environment [5]. The reason for the significant usage of the technology is its benefits and advantages in the business functionalities. Cost-effectiveness is one of the major benefits of the technology. However, there are various risks associated with the technology with security issues being among the major risks. Choosing a good cloud computing service provider can help in mitigating the risks associated with the technology. The cloud-based system design for S-mart company requires a service oriented architecture to ensure that all users can access services, data and information from the cloud through the enterprise components for security purposes. A new cloud-based system will ensure increased revenue income and productivity for the S-mart retail company. References [1]D. Rountree and I. Castrillo, The basics of cloud computing. Waltham, Mass.: Syngress, 2014. [2]C. Catlett, Cloud computing and big data. Amsterdam: IOS Press, 2013. [3]F. Mamaghani, "AN ANALYSIS OF COSTS, BENEFITS AND RISKS OF CLOUD COMPUTING", Journal of International Management Studies, vol. 14, no. 3, pp. 7-14, 2014. [4]Z. Wan, "The Design and Implementation of Resources Sharing System Based on the Cloud Computing", AMM, vol. 543-547, pp. 3316-3319, 2014. [5]D. Wang, "Influences of Cloud Computing on E-Commerce Businesses and Industry", JSEA, vol. 06, no. 06, pp. 313-318, 2013. Read More