Cloud Computing for SMEs: Benefits, Concerns and Recommendations

Cloud computing is a technology that allows organizations to build an online presence with facilities not possible through alternative means of going online. It has three service models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). These models allow entities to start small, scale up or down as needed, and choose the level of technical expertise required. Cloud computing is beneficial for Small and Medium-sized Enterprises (SMEs) due to its elasticity, scalability, and flexibility. However, concerns regarding data security and trust in third-party providers are also important considerations.

Running head: CLOUD COMPUTING OVERVIEW AND EXPLANATION
Cloud Computing Overview And Explanation With Focus On Small & Medium
Enterprises
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CLOUD COMPUTING OVERVIEW AND EXPLANATION
Table of Contents
Abstract............................................................................................................................................3
Cloud Computing Overview And Explanation With Focus On Small & Medium Enterprises......4
Benefits Of Cloud Computing.........................................................................................................4
What Is Cloud Computing Composed Of........................................................................................5
Essential Characteristics of Cloud Computing................................................................................5
Service Models Of Cloud Computing..............................................................................................7
Deployment Models Of Cloud Computing......................................................................................7
Virtualization In Cloud Computing.................................................................................................8
Cloud Computing and SME.............................................................................................................9
Concerns With Cloud Computing....................................................................................................9
Service Providers And Recommendations.....................................................................................10
Migrating To Cloud Computing....................................................................................................10
Conclusion.....................................................................................................................................11
Appendix........................................................................................................................................13
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CLOUD COMPUTING OVERVIEW AND EXPLANATION
Abstract
Cloud computing is a term popular among consumers and IT professionals to denote a ubiquitous
form of computing, data access, and services which are independent of any particular device.
The complexities of the implementation of hardware, software, protocols and policies are hidden
away in the 'cloud', with the consumer neither aware nor wanting to be aware of the
technicalities. However, there is more to cloud computing than just using the services of well-
known providers like Gmail, Facebook, Twitter, etc. Cloud computing is a technology within the
reach of individuals, small and medium enterprises and large companies. The technology is
stable and there are options available for every combination of requirements. This paper
introduces cloud computing, explains the components that make it, the benefits, concerns and
how to move to the cloud. Though written as a general overview, this paper is biased towards
small and medium enterprises.
Keywords: Cloud computing, cloud hosting, SME, online, hosting
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CLOUD COMPUTING OVERVIEW AND EXPLANATION
Cloud Computing Overview And Explanation With Focus On Small & Medium Enterprises
The Internet is embedded in society and human culture, so much so, that United Nations
has included it in basic human rights [1]. The Internet has eliminated the tyranny of geography
and time zones by enabling instant communication between people anywhere on earth. This has
revolutionised every facet of human activity, and specifically for small and medium enterprises
(SME) also. The Internet provides for more opportunities to sell goods and services to a global
audience where that might not have been possible using traditional means. Embracing the
Internet is a key for improving the productivity and sharpening competitive edge in both local
and international markets for businesses of all sizes [2].
To become a producer on Internet requires having an online presence. This paper will
introduce, explain, identify concerns, recommend service providers for a type of web hosting
which is referred to as "cloud", say cloud computing, cloud hosting, etc
Benefits Of Cloud Computing
Building and maintaining an online presence is a process that involves ongoing
functioning of a lot of moving parts like hardware, software, people, finances, policies,
regulations, etc. In addition to cloud computing, there are alternative hosting options like
maintaining own equipment, renting floor space in a data centre, shared web host, virtual private
server and dedicated private servers. Hosting options other than maintaining own equipment
relieves from the overhead of hardware and software management from the enterprise in that the
enterprise does not need to concern with the procurement of hardware, installation/upgrade of
software, ensuring networking, etc.
In addition, there are some exclusive benefits to cloud computing. Cloud computing
provides automatic upscaling and downscaling of computing resources within minutes of spikes
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in traffic. Maintaining sufficient resources to be able to handle the peak demand can be costly
[3], and then there is always the chance that the enterprise may not be able to predict it correctly.
Another exclusive advantage of cloud computing is cost associativity [4], which means that
running one computer for 20 hours costs same as running 20 computers for one hour, thus saving
so much time in one fell swoop.
Thus, due to these characteristics, cloud computing is especially suited for developers
launching their applications without upfront investments to cover the unpredictable demand,
enterprises requiring reliability and (automatic) scaling, and large batch processes where savings
of time would be a business advantage.
What Is Cloud Computing Composed Of
Cloud computing is an important technology and has received attention from the National
Institute of Standards and Technology (NIST). In its Special Publication 800-145 [5], NIST
focuses on cloud computing. This publication identifies the characteristics and components of
cloud computing to help comparisons, guide deployment and provide a baseline for evaluation of
service providers. This paper draws upon this official document, according to which cloud
computing is composed of five essential characteristics, three service models, and four
deployment models.
Essential Characteristics of Cloud Computing
There are some characteristics which are essential for a technology to qualify as cloud
computing. These are on-demand self-service, broad network access, resource pooling, rapid
elasticity, and measured service.
On-demand self-service means that the consumer can procure as many resources as he
desires without having to interact with a human on the provider side. These resources include
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processor, memory, bandwidth, storage, etc. Also, the user should be able to procure these at will
and at any time. In practice, this means interacting with the service provider using a Web
interface to authorise oneself, procure resources, set them up, and pay for them.
Broad network access means that the capabilities of the service need to be accessible over
a multitude of devices, over a network and using standard mechanisms. In practice, this means
Internet and that the service is accessible using computers, mobiles, etc.
Resource pooling means that there is a pool of resources which multiple users can use
from. However, in contrast to shared hosting, the tenancy is dynamic and depends on the
requirement of users and the availability of the hardware. The users cannot ascertain which
hardware and where is servicing their request. However, higher-level constraints are possible e.g.
having the resources only in a particular data centre or a country. In practice, this boils down to
the user only accessing a Web interface and viewing the stats in the Web-based control panel and
never knowing or touching any hardware which may be servicing his request at the moment. The
user may restrict the resources according to a higher-level constraint like location, country, etc.
Rapid elasticity means that as per the demands, the resources allocated to a user increase
or decrease, and this may happen automatically also. The objective here is to ensure that every
client is served. From the cloud computing customer's point of view, the resources are infinite
and available at any time the need arises.
Measured service means that the provider has ways to measure the consumption of
resources by the tenants. In practice, this manifests as billing of pay-as-you-go, though some
service providers lower the per-use charge for an upfront payment [4].
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Service Models Of Cloud Computing
Service models of cloud computing cover the various possibilities for a user when it
comes to using the cloud computing resources. These service models are Infrastructure as a
Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).
IaaS serves the customers who want access to the bare metal hardware (server, storage,
network components) and have control of the software from the operating system onwards. This
is a technical service and requires professionals to manage, but is also the most powerful in terms
of control and customizability.
PaaS builds on top IaaS and wraps up the technical details in pre-packaged programming
languages, libraries, configurations such that the user has no control over the bare metal
hardware. While this lowers the degree of control, it also relieves from the management and
configuration of the bare metal hardware. Services in this category are a less intimidating and
less technical way to begin using cloud computing.
SaaS builds on top of PaaS to provide custom solutions which solve end-user's problems.
This is the capability provided to end-user by running the software on cloud computing. As such
the user of this model does not have access to the underlying application code, programming
languages, libraries, bare metal hardware, etc. The end-user only has control limited to the
application-specific settings.
Deployment Models Of Cloud Computing
Deployment models of cloud computing cover the ways in which all these technologies
come to fruition. It covers how the hardware and software will come together to provide the
cloud computing. There are four deployment models - private cloud, community cloud, public
cloud and hybrid cloud.
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Private cloud's infrastructure is used exclusively by a single entity (enterprise,
organisation or individual), though it may be managed by the entity itself, a third-party, or a
combination of them. As an example, big companies like Google, Microsoft may have their own
private clouds [4]. The infrastructure may exist on or off premises.
Community cloud is exclusively used by a specific community of users who share a
concern e.g. universities, government departments, etc. The infrastructure for community cloud
may be managed by members of the community, third-party, or a combination of them. The
infrastructure may exist on or off premises.
Public cloud is available to the general public. These are run by businesses, universities,
government departments, or some combination. The infrastructure exists on the premises of the
organisation.
Hybrid cloud is a combination of the other three distinct types (private, community and
public), such that they remain unique entities but are bound together such that data and
application portability among them is maintained. This portability may be achieved by
standardised or proprietary technology.
Virtualization In Cloud Computing
In cloud computing, there is bare metal hardware which as mentioned above comprises of
server, storage, network components, and also software, configuration, upgrades, patches, etc to
make the cloud computing infrastructure usable. These machines are powerful and by themselves
can support multiple tenants. From a business point of view, it is less attractive to bind an
expensive hardware to a single tenant and neither will the tenant be willing to pay the premium
required for a powerful machine which remains idle most of the time. In fact, such a
configuration resembles renting private servers. One of the essential characteristics of cloud
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computing is to be able to start small and then scale up or down as per the requirement. Thus, it
is in every stakeholder's interest that the machines be utilised as much as possible with minimum
wastage.
This requirement to divide the physical resources into small parts and assign them
dynamically to users is enabled by virtualization. Virtualization is the technology that allows the
operating system to run a special software which allows for compartmentalisation of resources.
By definition, these compartments are secure and no user can peek into another's compartment.
Now, whenever more resources are required (as per elasticity essential characteristic), more
compartments are allocated to the user and the reverse happens in the case of a drop in
requirements of resources.
Cloud Computing and SME
What does all this mean for an SME which is looking for an online presence? Cloud
computing means a couple of things which benefit an SME, and such benefits are not available
in alternative ways of going online. Cloud computing allows an organisation to start small and
completely bypass predicting the success of the endeavour without risking overprovisioning or
underprovisioning. All users are covered since elasticity (explained earlier in the paper) allows
for serving any number of users. Also, the three different service models (discussed earlier in the
paper) allow for an enterprise to jump in at the technical level it is comfortable in.
Concerns With Cloud Computing
There are some concerns with cloud computing which any entity wishing to go online
with cloud computing must consider. In cloud computing, the tenant does not have physical
access to the equipment running his application or website. In fact, the tenant is not even aware
geographically where these services are being run. This amounts to handing over the data and
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code to a third-party and putting trust in them. This means risk for data and intentional or
unintentional exposure to data. A way of mitigating this risk is to encrypt data in the cloud. It is
to be noted that this risk is inherent in all alternatives which do not involve buying and
maintaining the servers by self. Cloud computing depends on virtualization which involves
(virtually dividing a powerful computer among tenants as the requirements dictate. This
technology is by design secure but opens up another possible way for malicious users to try and
access the data on all the tenants in the current physical computer.
Service Providers And Recommendations
There are a lot of service providers available and a lot of products in all three service
models (IaaS, PaaS, SaaS). The market is dominated by Amazon, Microsoft and Google;
followed by Heroku, IBM, Rackspace and others. It is recommended that first of all an entity
estimates the degree of network management skill at its disposal. Skilled network administrators
are expensive and not readily available. If such a skill-set is at disposal, then (relatively cheaper)
IaaS products can be used, else PaaS models can be used. It is recommended that the entity
planning to go online review the market and discuss with the developers and work out a plan.
Also, most service providers provide a free trial period or free smaller accounts. It is suggested
that the free accounts be explored to evaluate the suitability first.
Migrating To Cloud Computing
Depending upon the network skills at disposal, a development team may choose to go for
an IaaS product or a PaaS product. Migrating to an IaaS product is more detailed and
maintaining one requires regular updates and tweaking of the server. Migrating to a PaaS product
is simpler and is not more involved that migrating to a shared hosting. Thus, this is a tradeoff
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between the skills at hand and the expenses. The expenses can be done either in hiring a
specialised network administrator or by paying a premium for a PaaS over IaaS product.
Conclusion
Cloud computing is a technology which allows entities from individual to the biggest of
enterprises to build and maintain an online presence with facilities with are not possible with
alternative means of going online. Essential characteristics like elasticity (scaling up or down as
per the demand) allow for the entity to start small with the assurance that any growth in the
product's demand will be met successfully. Service models allow for different technical skills to
select a relevant product. It is recommended that enterprises of all sizes test the waters with
cloud computing to offload the overhead of maintenance of servers and pay for a small unit of
cloud computing, safe in the fact that any growth issues will be taken care of by the provider.
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References
[1] S. Wicker and S. Santoso, "Access to the internet is a human right", Communications of the
ACM, vol. 56, no. 6, p. 43, 2013.
[2] J. Lawrence, The Use Of The Internet In Small To Medium-Sized Enterprises, 1st ed. 2002.
[3] T. Chieu, A. Mohindra, A. Karve and A. Segal, "Dynamic Scaling of Web Applications in a
Virtualized Cloud Computing Environment", 2009 IEEE International Conference on e-
Business Engineering, 2009.
[4] M. Armbrust, I. Stoica, M. Zaharia, A. Fox, R. Griffith, A. Joseph, R. Katz, A. Konwinski, G.
Lee, D. Patterson and A. Rabkin, "A view of cloud computing", Communications of the
ACM, vol. 53, no. 4, p. 50, 2010.
[5] P. Mell and T. Grance, The NIST Definition of Cloud Computing, 1st ed. National Institute of
Standards and Technology, 2011.
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Appendix
The complete presentation is embedded below and is available by double-clicking the
shown slide.
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