Pros and Cons of Cloud Computing - Assignment Example

Cloud Computing Name: Course: Executive Summary Cloud computing has become the latest buzzword in the IT industry these days with the system offering various cost benefits to the companies. However, it is also essential to understand the caveats of implementing such a system as well. Some of the major concerns related to the implementation of cloud computing includes security issues, risks of loosing data, dependency on third party vendors for any IT resolution issues etc. However, due to the efficiency of the system, it has many advantages as well, such as saving on implementing and maintaining infrastructure and application costs. This report provides an in-depth analysis of cloud computing and focuses on various advantages and disadvantages of implementing such a system for organizations. Table of Contents 1 Cloud Computing 1 Executive Summary 2 Table of Contents 3 Introduction 4 1.History and current state 4 1.1.Defining cloud computing 4 1.2.Current state of cloud computing 4 1.3.Cloud computing and Web 2.0 5 1.4.Pros and cons of cloud computing 6 2.Changing technology 7 3.Management Issues 9 3.1.Changes in technology requirements and services 9 3.2.Whether the framework for IS Management provided in the text needs to be updated or not 10 3.3.Changes in the role of the IT department 10 3.4.Alignment of business processes and cloud computing 11 3.5.Discuss the following issues within an organisation in relation to cloud computing: 12 Conclusion 13 Recommendations 14 Reference 14 Introduction Companies globally are increasingly looking at implementing innovative services to reduce costs, optimally use the available resources and add to their bottomline without much investment. The implementation of cloud computing has helped many companies to achieve these targets by providing innovative and flexible technique to test, develop and create various products and utilize services without the requirement of a full-fledged infrastructural set-up. However, even before implementing such a service it is important to understand the system well and identify the pros and cons along with various other features of the system. This report therefore focuses on understanding the basics about cloud computing and how its implementation would impact a company. 1. History and current state 1.1. Defining cloud computing Cloud computing has been used to elucidate the platform and the type of application. This platform is able to configure, provision, reconfigure, or even deprovision the server as desired or per the situation. The servers in the cloud can be considered to be physical machines or even virtual ones. In case of advanced clouds, it includes some of the other computing resources i.e. storage area networks (SANs), firewall, network equipment, and even security devices. Cloud computing also describes the applications that can be extended for accessing directly through the Internet. The applications majorly use large data unit and some of the powerful servers for hosting Web services and Web applications. Someone with a good internet connects and browser has the ability to access cloud application (Hartig 2009). 1.2. Current state of cloud computing The services provided by Cloud Providers can be grouped into three main categories Software as a Service (SaaS): As per the model, a complete application is provided to the customer as a part of the service on demand. In this case, a single instance is run on the cloud that enables multiple end users to operate the system. As a part of this, the customer doesn’t need to put any investment in the servers or any software licence. On the other hand, for the provider, the cost comes down significantly as only single application can be hosted and maintained. SaaS is being offered by major MNC’s like Salesforce, Google, Zoho, Microsoft, Zoho, etc (Knorr & Gruman 2008). Platform as a Service (Paas): In this case, a layer of software, or a development environment is brought together and offered to the customer. On this one higher level is also built. Also, the customer is also given the flexibility to prepare their own applications. These applications run on the infrastructure of the provider. For scalability and manageability, applications the requirement of the application is taken in to account, wherein, the PaaS provider’s offer are predefined with the combination of OS. The application server which is LAMP platform (Linux, Apache, MySql and PHP) is restricted to J2EE or Ruby or others. One such being Google’s app Engine and Force.com can be considered to be some of the common examples (Hayes 2008). Infrastructure as a Service (Iaas): Basic storage with computing capabilities is some of the services offered by IaaS as a part of the standard services on the network. Storage systems, Servers, networking equipment or even etc. can be pooled are made available over the network, that are able to handle huge workloads. IN this case, the customer usually deploys own software onto the network or infrastructure. Amazon, 3 Tera, or even GoGrid, are some of the common examples for the companies using the services (Hayes 2008). 1.3. Cloud computing and Web 2.0 Portability of the users is one of the advantages that is being offered by Cloud computing. The users who have good internet connection and a good browser are able to get into the network pretty fast. Also, the Cloud computing has the capability of emulating the desktop tools or experience. Enterprise are the prime focus of Cloud computing. In today’s environment where business requires collaboration on a real time basis where geographical distance should not be barrier, cloud computing has become a viable option wherein, real time interaction between two countries or part can be done without having the work suffer. It has the capability of offering portability for different users without requiring the constant reminder of the local gadget or any installations (O'Reilly 2008). While on the other hand, Web 2.0, has been in use for many years before even cloud computing became such a popular tool in the industry. Although defining Web 2.0 can be simple by sorting the components Web 2.0 is about the fact that the interaction of the user and the real time information that he/she will receive. In case of Web 2.0, most time the focus is on the different type of online applications that can be used, wherein users are given the freedom to establish contact and make iterations to the online environment. In this case, it deals with interaction between the users. One of the classic examples being Web 2.0 is basis of various social networking sites. For users in the websites are able to connect to each other as they make changes to the online environment on the basis of the preferences (O'Reilly 2008). 1.4. Pros and cons of cloud computing Some of the benefits are discussed as under Reduced Cost: The number of reasons for taking up cloud technology is related to the advantage of having lesser costs. In most cases, billing model is as per usage; also as infrastructure is bought, that helps controlling costs. As well as the expenses incurred at the Initial and on a regular basis is very lesser than that of traditional system (Kash 2009). Increased Storage: As massive Infrastructure is being offered by the Cloud providers, storage as well as maintenance of data has become very manageable. In case of sudden spikes in workload are also handled efficiently, as cloud is able to scale very dynamically (Kash 2009). Flexibility: The most important facet or characteristic, allows enterprises to adapt rapidly. In the changing business environment, delivering end product with speed is a necessity. Cloud computing is able to put focus on market by using most appropriate blocks which can be helpful during deployment (Kash 2009). In spite of growing influence, some of the concerns on cloud computing have been constant. Analysts opine that benefits of platform outweigh the drawbacks directly. However, some of the challenges are as under: Data Protection: One of the crucial elements is Data security. Enterprises are most reluctant to rely on a vendor who is also providing the same platform to the peers/competition in the market. They are often fearful of losing data to the competition as well data confidentiality. In cases, the storage location is never disclosed adding more worry on the security. As per the existing models, across centers firewalls are installed to protect such critical or sensitive information. In case of the cloud model, service providers are held responsible for maintaining data security (Brandel 2009). Data Recovery and availability: In almost all case, business applications are given service level agreements for using the application. Coupled by Service level agreements that have to be followed stringently. One of the key roles of the Operational teams is to manage the service level agreements and also the runtime governance of the applications. In case any services are under-served by the cloud provider, the impact could be very severe (Naone 2009). Management Capabilities: In spite the fact that there are loads of cloud providers, managing the platform and as well as the infrastructure is still in the nascent stage. Some of the features such as Auto-scaling is critical for many enterprises. Huge potential remains for scalability and balancing load as per the stage as of provided today (Naone 2009). Regulatory and Compliance Restrictions: In some European countries, it is not allowed per the government regulations that personal information of the customer and any other sensitive information are physically located out of the country or state. For meeting such as requirement, it is necessary for setting up a data center as well, a storage site that has been bifurcated by country so that complying with the regulations becomes almost mandatory. Building up such an infrastructure may not be feasible and becomes a big challenge (Naone 2009). 2. Changing technology Some of the effects of cloud computing on the traditional computing components are discussed below: Operating systems: It requires a Web applications can be stable or efficient for operating system to interface with the hardware and even manage files or even allocate resources. Cloud server is a stripped version of the standard installations that doesn’t need any direct hard drive that can interface with the peripherals. Microsoft and Google clouds are made to run on custom operating systems that are tailored on the web use. Another stripped down version is Windows Azure which is latest Windows Server (Hamm 2009). Application software: New web applications are often small and witness an exponential growth over a period of time. In most cases, web developers who are evaluating these cloud stacks start from the onset without having to switch from the legacy system or any implementation of alternate system. Cloud computing have operations planning, abstracts tiered architecture and any other nuances that specializes in bringing new ideas to the market. Most times it has been seen that Web developers often prefers cloud stack that is tuned for getting fast experience of web (Brown 2009). Databases: Databases are defined as a preferred method for structuring data that power web applications. At most times, Cloud service providers are able to tune or rewrite the functionality of the cloud that opens up opportunities for scaling databases that is able to service across various dynamic applications. These databases are often distributed or replicated are largely transactional. The databases have limited in functionality in comparison to other functionalities. One of the database layers can be abstracted to become a separate layer in between a cloud stack. But in most cases, developers most likely only use some of the local solution to get simplicity and speed (Brown 2009). Hardware: Data operations and hardware are also consolidating with regards to major players. The specialist providers are able to prepare or build at a space or scale which other system is unable to specialize. The demand based infrastructure, is a cheaper option and becomes most efficient, which helps the company operate internationally anywhere (Hartig 2009). Middleware: Although, middleware is not explicitly required in cloud computing, many companies are using middleware service to make the systems more flexible to changes. Need for middleware would become more apparent with machine-to-machine applications that runs on embedded systems are being used through the web. Further, developers are also able to create various web-based applications through the use of middleware services in cloud computing (Hartig 2009). Infrastructure: It has been usually observed that users of cloud computing do not require any physical infrastructure. The users would use the physical infrastructure from the cloud computing service provider on rent and would be charged according to per unit usage. Thus, the companies would not be required to invest into creating physical infrastructure. Instead, they may invest to create community clouds and share infrastructure to draw maximum benefits from cloud computing (Hartig 2009). Communication facilities: In today’s world most of the communication-based services such as hosted and virtual PBX and sales force management are being migrated to cloud-based solutions. Even the trend of speech recognition is following suit. In such a technique, the host computer located in the cloud, would provide the IVR or mobile devices, which otherwise would have taken a long time to embed and integrate into the system if developed indigenously (Hartig 2009). 3. Management Issues 3.1. Changes in technology requirements and services One of the major advantages of using cloud computing is that it helps in reducing use of resources such as storage devices, CPU and other such computer devices and resources. Thus, the companies are not required to install any software, hardware or network equipments and instead can use the central infrastructure, software and platforms as and when they need it and pay for its usage. Due to the capability of sharing the resources, the utilization of the capacity also increases (Farber 2009). Thus, companies that use cloud computing are not required to worry about problems related to technology and IT installations. All the company needs to do is invest into computers and fast Internet connection. It can do avoid the cost of installing and maintain servers, networks and applications. Further, the providers of the cloud service would look after all infrastructure and application issues. With the expansion of business, a company may also increase its computing capacities by seamlessly integrating its business with the cloud computing services, which would help employees to access data from any location without any major investments. In case of a traditional situation, such expansion might have cost the company to invest into planning and installing of infrastructure. Therefore, cloud computing would make the work of a company easier and would only require minimal investments in terms of technology and infrastructural changes (Rayport & Heyward 2009). 3.2. Whether the framework for IS Management provided in the text needs to be updated or not The framework for IS Management provided in the text needs to be updated as the use of cloud computing services would reduce the requirements of so many management members within the IT department of an organization. The higher management level would remain intact with the CIO looking after the entire business requirements, along with the support of the CEO, COO and CFO. However, due to the reduction in installation and maintaining of infrastructure, platforms and applications, the management team would not require system development and delivery team or an infrastructure management team. Instead it would require a coordinator for collaborating with the cloud computing service provider on a daily basis for any issues. Further, it would require a monitoring team to understand the daily working of the system through cloud computing so that a proper log could be maintained and referred to in case of any escalation or security issues. Also, the management team needs to focus more on handling security concerns rather than maintaining infrastructure (Hamm 2009). 3.3. Changes in the role of the IT department Due to the implementation of cloud computing, the role of the IT department would also change greatly. As implementing cloud computing services would not require purchasing hardware or applications, companies or even individual divisions can install such a service without the need for a full-fledged IT division. Although, the company may bypass the need to have an IT department, it would still need to employ professionals to conduct regular due diligence, especially addressing various security issues. This would help in ensuring that the data is protected and secure (Buyya et al. 2009). Further, the management also needs to develop policies that would help in evaluating the security issues related to the implementation of cloud computing services. The priority is also placed on important applications that are being used through cloud computing. Further, the organization should focus on issues such as understanding the access rights, locating sensitive data and managing crucial information even before the deployment of the cloud computing services. Also, the IT department needs to create policies that would ensure that important applications or sensitive information which might pose risk to the company if it gets leaked should be maintained within the company premises. The employees should be aware of various types of information and understand the storage policies regarding them (Buyya et al. 2009) 3.4. Alignment of business processes and cloud computing With the implementation of cloud computing, it would be easier to align the business processes with each other. However, in order to achieve such an alignment, it is required to integrate the cloud computing services in a proper manner. The implementation of cloud computing services may help in synchronizing various front office and back office applications such as data regarding payroll, accounts, customer details, sales force automation, etc. If such synchronization is conducted, it would help the company in achieving results in a timely manner as well as saving resources (King 2008). Further, aligning the sales force along with the marketing and customer service division through cloud-based integration system would help in providing the sales team with a common view about the existing or prospective customers, which would aid in pitching to new customers or cross-selling to the existing customers. Often companies are required to maintain the databases of important information for a longer period of time and had to invest into various infrastructural requirements. However, with the use of cloud computing, the data could be stored off the premise and into cloud storage system without the company worrying about incurring additional infrastructure or maintenance costs (King 2008). 3.5. Discuss the following issues within an organisation in relation to cloud computing: Reliability: In order to have a successful business, it is essential to have quality applications that are reliable and perform exceptionally well. Thus, while implementing cloud computing, it is essential to keep these issues in mind as the organizations would not have proper control over the applications that the cloud computing service providers would be implementing (Braiker 2008). Maintenance: The option of paying as per usage has reduced the investment on maintaining the infrastructure or other application costs. The company usually has to pay a monthly fee and the entire infrastructure is being maintained at the vendor’s end. Thus, the worry about maintaining the infrastructure is reduced, together with the cost incurred for such maintenance. Further, it is easier to upgrade the system with the users being able to get the most updated version of the application without the company spending too much on such upgrades. Also, using cloud computing would mean lesser number of bugs as the company would be using a single software version, which would be updated regularly by the vendor (Brown 2009). Security: The greatest issue that companies face due to the implementation of cloud computing is security concerns. It is therefore required that the system should be protected to ensure that data is secure in the system. It should be robust enough to detect any fraud in a timely manner and actions should be taken immediately. The vendors should ensure that firewalls are implemented to protect the customers from any external intrusions (Rocha 2009). Risk management: The companies using cloud computing face the risk of losing information if they lock the data in formats that are proprietary. On the other hand, if the data is not secured enough, they would not be able to identify the people who are using the data or viewing them. Thus, it is essential to evaluate the security norms within the organization before implementing cloud computing services. Some of these techniques include firewalls and encryption tools (Schwartz 2008). Managing service provider relationships: It needs to be kept in mind that the service provider is the one who has the control over the hardware and applications and therefore, it is important to maintain a good relationship with the provider. Further, the company should choose such a system that is not only simple and standard but is easier to be integrated within the business environment. This would help in reducing any implementation issues and system maintenance issues with the service providers (Cramm 2009). Managing legacy systems: Smaller or mid-sized companies that have less number of legacy systems can adopt cloud computing much more easily as compared to large-sized companies. In case a company has lesser number of legacy systems, cloud computing enables such companies to utilize the affordable technology and reap the maximum benefits (Cramm 2009). Managing assets: As cloud computing does not require additional infrastructure and resources to develop and maintain hardware and servers, it helps in reducing the worries related to managing any physical asset as well, thereby, reducing the cost for procuring, installing and maintaining such assets (Cramm 2009). Organisational issues: Although being technically advanced, the application of cloud computing in the real world may cause certain organisational issues as well, which might range from various technical issues to business strategies as well. Some of the major organisational issues of concern are the absence of flexibility in cloud computing to provide customised services, privacy issues and various service level deals and contracts (Cramm 2009). Outsourcing: The cloud computing model does not require traditional outsourcing techniques as the client does not require providing its own infrastructure to be managed by an outside vendor. Instead, the client just needs to log into the cloud system of the vendors and use their infrastructure (Cramm 2009). Conclusion In the contemporary competitive market, it is essential for companies to innovate for surviving the competition. In order to achieve so, it is important for employees to be empowered and creating collaboration between platforms and users. Cloud computing is that innovative technology that would help companies to progress with minimal investments. The system of cloud computing helps companies to effectively utilize its IT software and hardware investments as well as give them means to adopt various innovative resources. The system also helps in increasing the profitability for the company as the resources could be utilized easily. The cloud computing services helps the company to reduce costs as the resources such as infrastructure, application and platforms are not required to be implemented or maintained with its implementation. Thus, this investment could be directed to other projects and help in the progress of the organization. Thus, cloud computing is enabling companies and teams to streamline the operations and create better coherence within various departments as well. Recommendations Cloud computing like any other technology platform creates various risks associated with its implementation, such as privacy and security issues, data management and integration problems and inferior service quality issues. Thus, in order to implement cloud computing in a successful manner, it is required to undertake careful planning, adaption of the technology in an integrated and seamless manner as well as well-researched navigation facility. It is also recommended that companies should undertake incremental steps for creating and implementing cloud computing within the system earlier on so that the companies are able to reap the benefits with its application and deal with various risks associated with the implementation of cloud computing at the earliest. 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