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Cloud Computing - Research Paper Example

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Name: Date: Cloud Computing Introduction While technological development aims to harbor prosperity for human kind, businesses are quick to relate such developments with their economic benefits. Cloud computing is a step forward in this direction…
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Cloud Computing

Download file to see previous pages... Cloud computing makes it possible for small and medium businesses to take advantage of large datacenters and applications software that they require to run their IT operations. Obtaining such services by utilizing in-house enterprise computing resources would mean huge expenditure for purchase of new hardware systems and related software. While cloud computing service providers like Amazon and Microsoft are offering an inexpensive solution to these problems, issues like security and data safety concerns require intensive resolution by such service providers. Traditional model of enterprise computing An in-house IT computing division of any business would consider the total cost of ownership to run the required computer systems. This includes the cost towards purchase of licensed applications software, hardware equipment and devices, as well as maintenance of in-house IT staff and development of vendors. Fixed and variable costs Any new start-up has to bear the upfront expenses that include installation costs for hardware systems, software applications and cost towards setting up the required security environment. The variable costs include expenses towards running of the system, upgrade of software, training of IT staff and constant monitoring of security system. The operating cost for traditional enterprise computing keeps on increasing with the new technology upgrades. Every upgrade of software would require dedicated staff to run the application. With rapid expansion in businesses and fast technological development in the computing environment, the capital cost towards installation of new hardware is always high, considering the output required from such systems. In addition, the frequent need for replacing large and small equipment like servers and routers puts extra burden on the economics of the concerned company. Coordination with vendors and suppliers, apart from software application upgrades is yet another cost burden, which can prove hazardous for the company. As new applications are developed almost overnight, the earlier expenditure done on the outdated application is a waste, while the system would demand installation of new application software for quality deliverance. This would also need matching hardware, as per the software installation and running set-up instructions. The cost keeps on increasing with expansion in the company business volumes.(Total cost of ownership) In-house IT staff Any upfront set up would require in-house staff to install, maintain and subsequently run the IT computing infrastructure and software. Hardware installation and running requires a different group of IT engineers, while another group would install applications software. Similarly, the training methodology for both would be different. Hence, the company may require new group of engineers for running a replaced server or router. The vendor development and software applications purchase agreements would require another group of IT staff, which has sufficient legal and technical knowledge about the involved technicalities. In addition, the expansion of business would mean installation of another set of expensive hardware, requiring more staff to run the same. The capabilities of IT staff remain limited, as engineers may not be able to match the new requirements of technology with their existing knowledge. This puts additional burden on the concerned business, in terms of ...Download file to see next pagesRead More
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