What Are the Advantages and Disadvantages of Cloud Computing - Coursework Example

The growth of AWS through cloud computing can be seen through its $750 million business in 2011. The pay-per-use facility is beneficial for new entrants like Zynga that handles an enormous amount of data through “City Ville”. Zynga is now mimicking the computer and web hosting applications that Amazon follows to optimize results and might soon develop their own cloud computing system. This will result in many followers and will raise the popularity of cloud computing.For a new entrant, it is hard to invest a huge amount in infrastructure to build their own data center.

Here cloud computing lessens their cost to a substantial level (Pay-Per-Use facility might be recalled as an example).In this type of business model, IT staff can meet user loads timely without going to engineer separately for peak loads.With the help of this, technology end-user can access data from any location or device (Fred, 2010).d) Cloud Computing helps IT Organizations in power cooling and optimize space usage and this helps them to manage corporate social responsibility (Fred, 2010).

Since the cloud-based data are stored on the internet so accessing the data is often not that fast from local drives.Sometimes users may not feel comfortable storing all data to the third party in fear of exposing it to danger (Jamsa, n.d.).Apply concepts of capacity planning, scalability, TCO both for Amazon and to subscribers of its service?Capacity Planning: -  This is a course of action that an organization uses to determine the production required to meet varying demands for its products.

Here though Amazon is a retail organization, they shift their business from retail to cloud computing technology, since lots of small organizations who are dealing with large data sets are opting to be their clients. In the long run, to reduce the risk of server downtime, they are simultaneously using public and private clouds.Scalability:  This is the capacity of a system to accomplish a large number of works in a competent style with the ultimate achievement of growth. Amazon is handling a large number of data of many organizations with flexible computing power, messaging, and other services.

Circumscribing this dimension, Amazon is equipped with huge resources directed towards helping an array of small firms entering the new business and struggling to maintain a huge database.  On the other way, subscribers of Amazon, for example, Zynga are using a business model where they use private and public cloud jointly. At the juncture when Zynga decides to launch any new application, they use the public cloud because they are uncertain about their future applicability.  Once this application stabilizes in the market they shift to its own cloud computing dynamics for the reduction of risk related to the server downtime problems.

TCO: Total cost of ownership is an estimation of cost method and is used to assist consumers and project managers to establish direct and indirect costs of a product or system (Fred, 2010). The total cost of ownership in excess of the original cost of purchasing hardware and software  (Coleman, 1998). In this case, we observed that Amazon is charging on a ‘pay-per-use basis. They are not charging on a monthly basis or yearly basis. If they charge on a monthly or yearly basis that may result in huge costs for small organizations and they might shy away from this business model.

While Amazon does all the maintenance and sustainability of their IT infrastructure that reduces the TCO of the smaller firms, they spend more on other business work. This way both Amazon and its clients end up in a mutually beneficial relationship, resulting in comfort and profit for both of them.What kinds of businesses are most likely to benefit from using cloud computing? Why?            Cloud computing is a very attractive technology for business houses.

This is a source that is readily accessible to assist organizations to meet their requirements and fulfill their goals. This is the ideal technology for small business houses that are dealing with a large number of data sets. Most of the time, a small organization does not have that much facility to set up its own data center because it relates to a lumpsum cost Also in the initial stages those organizations might not be sure about the success of their business processes. So If their business processes might not work well they have to face huge losses as a sunk cost.

To avoid this situation it will be better for those organizations to go for cloud computing through organizations such as Amazon, at least at the initial stages of their business operation.