Management Solutions in Practice - Coursework Example

Table of Contents Overview 2 Cloud Computing 3 Task 4 4 Future Challenges of Saleforce.Com and the Measures Taken By It to Overcome Them 4 Task 5 6 Security Issues and Risk in Knowledge Management Related to Cloud Computing 6 Task 6 11 Factors To Be Considered Prior To Implementation Of Salesforce.Com Services In Business 11 SWOT Analysis of Salesforce.com 12 Use of Salesforce.com in Running a Business 14 References 15 Overview Salesforce.com is an application service supplier and also provides Customer Relationship Management (CRM) services to organisations. The application services offered by Salesforce.com enable the businesses to share client information on demand. The company offers application software solutions to business organisations in the form of software as well as service rented out over the internet. This is in contrast to the conventional system where the organisations buy the software and install it on machines locally. Salesforce.com primarily functions in the United States of America and it’s headquarter is located at California. The company was instituted in 1999 and as of 2009 it had around 3900 employees, 2.1 million subscribers as well as 82,400 business clients. In the year 2009, the revenue of the company amounted to $1.3 billion, building Salesforce.com as one of the 50 foremost software businesses across the globe. Salesforce.com is recognised and distinguished for the many advantages of its on-demand form of software allocation (SlideShare, 2009; University of West Indies, 2010). Cloud computing has become a common practice in today’s dynamically advancing technological world. The objective of this study is to assess the concept of providing computing infrastructure and software as a service platform over the internet and the various challenges involved in it. This study reviews the challenges that the company Salesforce.com would have to encounter as it pursues to grow and develop with the passage of time. The study also discusses the various strategies through which the company would be able to face and overcome those challenges. Moreover, the study discusses the security issues and risks in addition to the issues pertaining to the management of information and data involved in the utilisation of cloud computing from a customer’s perspective. Furthermore, the study evaluates the factors to be taken into consideration while making the decision to utilise the services of Salesforce.com in a business. Finally, the study discusses how an organisation can run its business operations using Salesforce.com, Apple exchange and Force.com. Cloud Computing Cloud computing is an allegory used for internet, which provides its users an increasing compilation of computer system resources and related software architectures to offer application services. The services that are made available as a result of cloud computing are ‘Platform as a Service’ (PaaS), Infrastructure as a Service (IaaS) and Software as a Service (SaaS) (IATAC, 2010). From the perspective of the customers there are several factors that drive or impel cloud computing. The foremost reason in this context is that the services provided by the various cloud apps are very economical. Cloud apps are quicker, easier and reasonably cheap to utilise. Additionally, they also offer the facility of accessing the applications from anywhere at any time. Furthermore, there are no forthright funds essential for servers and storage as well as no ongoing operational expenditures for operating data-centre (Bechtolsheim, 2008; Buyya & Et. Al., 2011). From the perspective of the service providers, cloud computing makes it easier for them to get in touch with new clients. Moreover, the expenses of delivering and maintaining the software applications are very low and the application of cloud computing also drives down the operational expenses (Bechtolsheim, 2008). However, despite of the many advantages of cloud computing there are certain hurdles to cloud computing as well. The principal barrier to cloud computing from the perspective of clients is the concern for data security. Moreover, all the applications may not be available or rather workable on the ‘cloud’. Furthermore, cloud computing is not appropriate for applications that are supposed to perform in real-time. The service providers also have to face certain barriers in utilising cloud computing. The SaaS and the PaaS model of cloud computing are difficult to implement and maintain. Moreover, the application of cloud computing does not generate much upfront revenue for the service provider companies. Each application under cloud computing is exclusive and the service providers have to incessantly add value to each of them (Bechtolsheim, 2008). Task 4 Future Challenges of Saleforce.Com and the Measures Taken By It to Overcome Them As Salesforce.com persists to expand its business, it would have to encounter considerable amount of challenges. The foremost challenge that Salesforce would arise from amplified competition. The augmented competition could be in the form of both the conventional industry leaders as well as the emerging companies which are attempting to repeat the success of Salesforce. The industry leaders such as Microsoft, Oracle and SAP among others have also started providing subscription-based adaptations of their CRM services. The CRM products of these companies were earlier offered by means of software installation (University of West Indies, 2010). Though Salesforce has been growing constantly from its inception in 1999 and has a considerable customer base presently, it is way behind its large sized rivals in terms of both magnitude as well as market share. Moreover, the large companies like IBM, Microsoft and SAP have a wide and varied range of client base, which comprises of thousands of software organisations. For instance, around 9000 software organisations run the application services of IBM on their software. It is expected that such organisations would prefer to use a solution provided by IBM to that of Salesforce (University of West Indies, 2010). To overcome this challenge created by the large sized opponents, it would be necessary for Salesforce.com to incessantly provide evidence to clients that the services offered by Salesforce is dependable and safe enough to manage the corporate data as well as applications of the clients’. This development of an image of Salesforce as a reliable and secure application service provider in addition to its innovative business characteristics would assist Salesforce in tackling the challenge posed by the new emerging companies in the sector. Such companies have been attempting to replicate the success model of Salesforce, and hence it is necessary for Salesforce to win the trust and confidence of broad range of customers. Additionally, if Saleforce.com continues to deliver successful innovative and inventive services to the customers, then it would be difficult for the new companies to reproduce the achievements of Salesforce. At present, the services and CRM facilities of Salesforce is principally utilised by sales professionals who are required to keep track of potential customer leads as well as existing client lists. The other major challenge confronting Salesforce is the expansion of its business structure in other segments as well. Salesforce is attempting to meet this challenge of offering further functionality by forming an alliance with Google as well as Apple in addition to Facebook (University of West Indies, 2010). Task 5 Security Issues and Risk in Knowledge Management Related to Cloud Computing Considering the scenario, where the computers of a particular organization are a few years old and hence running the desktop software slowly, which is also old and needs replacement. In such a scenario the non-cloud solution for the organization would be to upgrade the system and set up latest as well as enhanced desktop software. However, the organization can also employ cloud computing, and select a ‘Software as a Service’ (SaaS) application from a service provider, at a much lower cost as against system up-gradation along with software installation. The organization can run the chosen SaaS in an internet browser on the present computer hardware. The organization can benefit from cloud solution by application of SaaS, in terms of economy as well as speed. This can be considered as the apparent rewards, as it would facilitate an organizational change due to the overhaul of existing slow process software to a much faster and comparatively economical system. However, there are numerous risks that are associated with cloud computing. These risks include both internal as well as external risks. A few of the security concerns and risks that are related to cloud computing are internal security violations, data security risks, cloud security infringements, system outages, vendor lock-in, loss of data and vendor malfunction among others (William, 2000; Gillam, 2010). Internal Security Risks The utilization of cloud computing solution would amplify the internal security hazards of the organization. Under such a scenario, employees can persist to access the business’s intellectual property even after quitting from the organisation, in case their user accounts are not deactivate immediately. Moreover, professional hackers could steal the usernames as well as the passwords from the employees of the organization by means of keyboard sniffing skill or a range of other techniques. In case the organisation utilises an identical user-name as well as password on its numerous computer systems, a hacker can access all the systems by breaching the credentials of a single system. Such types of internal security breaches can be avoided by strengthening the internal processes of the business and implementation of two-factor authentication and single sign-on system across the organisation. The economies of scale accomplished as a result of public clouds have enabled even the small organisation to afford the expertise of two-way authentication (William, 2000). External Security Threats When the organization utilises the SaaS application, it would apparently store its data in public clouds. This would increase the likelihood that the data might be compromised or shared with unauthorised users, consequent to breakdowns in the service providers’ technology or failure in the operational security norms of the service provider. This kind of threat gets amplified in a multi-tenanted arrangement, when the identical IT infrastructure is shared by the rival companies as well. In order to effectively assess the risks and the security concerns related to the utilisation of cloud computing services, the organisation should employ a third party for the assessment. It is important for organisations using cloud computing services to critically examine the segregation and privacy of organisational data and user access in addition to the capability of service provider to deal with any unforseen security threat. The external risks associated with cloud computing arises from its characteristics of location independence as well as the likelihood that the service provider might subcontract the service to multiple businesses. These unique characteristics of the services enabled by cloud computing, gives rise to possibility of IT hazards and legal as well as compliance concerns (Heiser & Nicolett, 2008). Hence, it is advisable that the organisations should aptly examine the legal, the audit and the regulatory concerns related to location independence as well as service subcontracting prior to the utilisation of cloud computing services. Furthermore, it would be beneficial if businesses that have IT threat evaluation proficiencies and control over services that are sources externally, apply them to the apt facets of cloud computing (IATAC, 2010; Heiser & Nicolett, 2008). Managing Data Data stored by the organization in the cloud, as result of SaaS application, would characteristically be stored in a shared atmosphere accompanied by data from other organizations. Encryption cannot be held as the solitary solution for data segregation problems. This is because in certain scenarios, the organization may not want to encrypt data because there may be an instance when encryption mistake can obliterate the data. The service provider of SaaS application should ascertain the safety of data in altering business circumstances like mergers and acquisitions. It is necessary for the organization to ensure data accessibility in these circumstances (Sargroya & Et. Al., 2009). In a cloud computing setting, the organization does not have an option of utilising physical acquirement toolkit. In a situation, where the server is impacted; the organization would have to close its servers down till the time it gets a prior backup of the data. This would further result in accessibility concerns (Sargroya & Et. Al., 2009). The conventional service providers have to undertake external audits as well as security certification. If a cloud service provider fails to comply with these security audits, then it might result in the decline of customer trust. It is imperative that cloud service providers ascertain the security of data in both natural as well as man-made adversities. In the case of any such adversity, the service provider should provide a comprehensive and quick restoration of data (Sargroya & Et. Al., 2009). Knowledge Management The management of knowledge and data resources is an integral function for every business organisation. For the effective management of data and to alleviate the risks caused due to the implementation of SaaS, the organisation should make serious attempts to enhance its regulatory compliance practises. The management of the organisation should take care of susceptible information as well as applications by efficiently segregating responsibilities amongst the employees. The organisation should develop customised access to important data and also design alerts for definite events, which would help to lessen insider as well as external security threats. The implementation of the mentioned practices would minimise the peril of accidental server access or loss of data owing to unintended or malicious actions (CA Security Management, 2009). Task 6 Factors To Be Considered Prior To Implementation Of Salesforce.Com Services In Business If a firm is considering utilising the service of Salesforce.com, then it is necessary for the business organisation to evaluate the security, confidentiality and regulatory compliance hazards related to the external service. The organisation should also recognise ‘use cases’ that are not apt for Salesforce’s service delivery process, on the basis of threat level and existing controls. This practice would help the organisation to categorise cases that fall under tolerable level of hazard for the service delivery of Salesforce. It would be advisable for the businesses to select and execute compensating controls prior to the utilisation of Salesforce’s service (Heiser& Nicolett, 2008). Prior to implementing Saleforce.com, it is essential for a business organisation to evaluate factors such as confidential user access, compliance, data location and segregation, accessibility, recovery, feasibility, investigative support, risk reduction support in context of the services of Salesforce.com (Heiser & Nicolett, 2008). To be precise, a business organisation should assess the commercial advantages as well as the hazards related to the cloud-based services of Salesforce.com. Since the products and the services of Salesforce.com are based on the concept of cloud computing, an organisation planning to use its services would not have to bother about the execution and functioning details of the service. Nevertheless, the organisation should be careful in evaluating the associated risks of cloud computing as they are not easily assessable. Thus, it can be stated that a business organisation can benefit from the various advantages of using Salesforce.com, provided it has efficiently evaluated the associated internal as well as external threats, and recognised suitable controls and use cases for the external service (Heiser & Nicolett, 2008). SWOT Analysis of Salesforce.com The major strengths of Salesforce.com are that the company had developed itself into a well-known brand for customer relationship management services and its unique business model that ascertains that the company can continuously enlarge its customer base owing to its speed and ease of product implementation. Additionally, Salesforce.com practices utmost level of security protocols in order to safeguard the proprietary client data. Furthermore, Salesforce.com attempts to provide near-real time service to ascertain that their clients receive continuous and reliable service (Olson & Et. Al., 2010). The principal weakness of Salesforce is that the company depends on a solitary product in the CRM area and hence it is deficient in flexibility in serving clients. Moreover, Salesforce is very small in terms of size and market share in comparison to its large opponents such as SAP, IBM and Microsoft among others (Olson & Et. Al., 2010). There are various opportunities available to Salesforce.com. The company had formed tie-ups with Google and Facebook in addition to its deal with Apple to incorporate its services in the iPhones. In a similar manner, Salesforce can form alliance with Akamai and benefit from its proficient deliverance of cloud-computing services. The enhancement in the delivery speed of the original CRM services of Salesforce.com would make the company more efficient to the clients in comparison to the products of other rival companies (Olson & Et. Al., 2010). The major threat to Salesforce.com is the entry of large companies like Microsoft and IBM in the cloud computing zone. Earlier, the products of these companies had to be installed in the systems of the clients, but now they have also started offering cloud-based external services. The entry of SAP, Oracle and other large organisations has increased the competition in the CRM market, causing a threat to Salesforce.com (Olson & Et. Al., 2010). Use of Salesforce.com in Running a Business In order to stimulate additional expansion in on-demand software, Salesforce had merged its services with Google Docs, Google Calender, Google Talk and Gmail. This merger of software services would enable an organisation using Salesforce to carry out additional tasks by means of the Web. Additionally, Salesforce.com had formed a partnership with Apple to hand out its applications for utilisation on the iPhone. This partnership would allow Salesforce to reach out to the broad market of iPhone owners. Similarly, Salesforce had also built a tool to amalgamate its services with the social networking site Facebook. This integration would facilitate an organisation to put up cloud applications that can function at the Facebook site. The application services of Force.com enable a business to develop its individual applications for utilisation within the broader system of Salesforce.com. Force.com offers a group of development equipments and services that would facilitate a business to adapt its CRM applications or build a completely new application and run it under the infrastructure of Salesforce. The other application of Salesforce, AppExchange helps small sized organisations to go online and download numerous software applications related to CRM as well as other functions, for example human resources. Hence, a business can benefit immensely in terms of cloud computing services by using the services of Salesforce.com and its various applications such as Force.com and AppExchange (University of West Indies, 2010). References Buyya, R. & Et. Al., 2011. Cloud Computing: Principles and Paradigms. John Wiley & Sons. Bechtolsheim, A., 2008. Cloud Computing. Stanford University Seminar. CA Security Management, 2009. Protecting Sensitive Data and Resources Throughout the Organization. Product Briefs. [Online] Available at: http://www.ca.com/files/productbriefs/protect-data-resources-pb-us-en_206652.pdf [Accessed November 11, 2011]. Gillam, L., 2010. Cloud Computing: Principles, Systems and Applications. Springer. Heiser, J. & Nicolett, M., 2008. Assessing the Security Risks of Cloud Computing. Gartner Research. IATAC, 2010. Cloud Computing: Silver Lining or Storm Ahead? IA Newsletter, Vol. 13 (2). Olson, A. & Et. Al., 2010. Salesforce.com, Inc. Strategic Report. [Online] Available at: http://economics-files.pomona.edu/jlikens/SeniorSeminars/vector2010/pdf/crm.pdf [Accessed November 11, 2011]. SlideShare, 2009. Salesforce.com. Report Linker. [Online] Available at: http://www.slideshare.net/ReportLinker/salesforcecom-swot-analysis [Accessed November 11, 2011]. Sargroya, A., & Et. Al., 2009. Towards Analyzing Data Security Risks in Cloud Computing Environments. International Institute of Information Technology, Hyderabad, India. University of West Indies, 2010. Salesforce.com: Cloud Services Go Mainstream. IT Infrastructure and Emerging Technologies. William, 2000. Risks of Cloud Computing. Cloud Computing. Read More