Cloud Computing: Benefits, Strategies, and Risks

This report provides an in-depth analysis of cloud computing, including its benefits, strategies, and risks. It covers topics such as cloud services, internet privacy, data control, and more. The report also explores the strategies for implementing cloud computing programs and the risks associated with them. The research is based on an extensive review of existing literature and secondary information sources. The report is a must-read for anyone interested in cloud computing and its impact on the business world.

Final Report
Full Name
Student ID
Subject ITC571 – Emerging Technology and Innovations
Assignment No Final Report
Due Date 30-May-2018
Lecturer’s Name Malka N. Halgamuge
Cloud Computing
Your Name
Your Email
School of Computing and Mathematics, Charles Sturt University, Melbourne, Victoria
Abstract - Cloud computing is the result of the evolution of concepts of virtualization and utility
computing. Cloud computing has provided such computing services that have never been witnessed in the
history of technology. It has given more power to the people and has cut down their costs to a great extent.
Google, Amazon, and Microsoft are known to be the chief providers of cloud computing services since
they have given their customers reliable and effective avenues to improve their business. Amazon is
considered to be the first provider of a cloud platform- Amazon Elastic Computer Cloud (EC2). Cloud
computing is a web service that allows the user to utilize numerous computing units on a need basis.
Google and Microsoft have also provided multi-faceted web services for cloud computing namely, Google
AppEngine, Windows Azure, respectively. The data centers that are coupled with cloud computing services
tend to provide better performance than the traditional enterprise data centers.
Key Words— Cloud computing, security threats, cloud services, internet privacy, data control.

1. INTRODUCTION
Cloud Computing refers to hosting businesses and other business-related services online. The services
could be accessed via the internet and are also described as “Cloud” The user interfaces with the Cloud
application through web browsers. However, it is not a must that everybody owns websites to be able to
utilize the online resources to fulfill personal and economic obligations. It is prudent and obvious to note
that numerous benefits associated with Cloud computing improved flexibility and scalability hence
reducing production costs which are quite attractive in business. In addition to that, there are still more to
be desired to enhance interest in Cloud Computing which is meant to turn the business perception that
people have to physically attend to their businesses to achieve a milestone. Many of the risks associated
with solutions to common problems hindering business industry and the global development [1].
Large organizations have always had the capital to purchase numerous servers, software, etc. to support
their businesses. It is the medium and small sized organizations that have struggled in this regard. Earlier,
the only alternate that was available for such companies was to maintain their IT infrastructure on someone
else’s premises, but now things have changed. It was a thing of the past when great investments were
required to launch a business or service on the internet.
Cloud computing provides developers with online availability of their computing needs to save
them from any heavy initial investments for the IT infrastructure. The service is paid off in the same
manner as the electricity grid, i.e. the payment equals the amount of consumption of the services. Cloud
computing is a concept that has been desired by developers for a long period. Large investments are not
required by the developer to launch a service or product since all the computing capability requirements are
available online. Cloud computing is known as the availability of application services, software, platforms,
etc. that would provide the basis of any desired service on the web. The computing capability for different
applications, software, etc that is availed from the internet as a service, is referred to as a ‘cloud’ [2].
Armbrust explained that the private cloud is referred to as to the internal clouds of an organization
that are not permitted to be used except the owner of the cloud i.e. the respective organization, whereas,
cloud computing is referred to as the ‘public cloud’ since it is available for use by any individual who
might need instantaneous computing capability. This innovative concept has even leaped the performance
level of data centers to a new level and has reduced costs for independent developers and organizations.
Developers use cloud computing as a platform to run their applications or even develop them from
scratch without investing in the acquisition of the required operating system or server hardware. Another
name that is used for this concept is ‘Infrastructure as a Service’ (IaaS); it includes the dynamic usage of
CPUs, virtual servers, network, storage, systems software, etc. Software as a service (SaaS) is another type
of cloud computing that provides access to software to users on their need basis while the software runs on
the vendor’s side of the data centers. The conventional mode of using the software requires the installation
of the software on the user’s computer, but this latest technology requires no such installation. Since many
decades, internet users have been availing the service of uploading their documents and pictures on the
internet by different services like Flickr, Snapfish, etc.; this concept has enabled the people to save their
data ‘on the cloud.’ The latest concept of cloud computing is far more usable, scalable and efficient for
individual developers and organizations [3].
Before the evolution of cloud computing, organizations relied on a conventional form of data centers
which were owned and maintained by the organizations themselves. The ownership and thus maintenance
of the data centers proved to be a major source of expenditure for the business owners. There was no
provision of scalability in the traditional enterprise data centers. They constituted of limited capacity and
bandwidth. The eventual increase in the size of the data and computing needs required further investments
in the infrastructure. Although the increased number of servers or other requirements might only be useful
for a limited period but had to be purchased to fulfill the needs of the business, for example, an online
shopping website might face increased traffic during December due to the holidays shopping. The
increment in servers and data centers would prove to be a source of greater revenues and quality service
during the days of heavy traffic but served as overhead for the organization for the rest of the year. The ‘on-

premise’ data centers proved to be very costly due to their nonalignment with the requirement of scalability
[4].
The on-premise data centers proved to satisfy the typical business conditions but fell short during the
atypical ones unless greater data centers were provided. At times, the sudden rush of requests also crashed
the servers due to which the service could be shut down and interrupted for the clients. Cloud News Desk
described the conventional data centers and explained that organizations had full control over their data but
were even liable for all disasters themselves. The infrastructure and data could not be shared with anyone
and had limited number of members with its respective access rights.
Enterprise owned IT infrastructure had to be updated with the latest patches and versions to continue
providing the latest functions and operations. This often meant greater investments since all new versions
are not free of cost. A competent maintenance team was required to manage the systems and deploy
effective security measures for its protection. Multiple management tools were adapted by the organization
for the smooth functioning of different applications and services. The management and maintenance of
such an extensive infrastructure created complex job descriptions for the employees. It is due to the
constant maintenance and required updates that the management greatly focused on the performance level
of the IT infrastructure rather than on their respective business. The conventional data centers did not offer
mobility since the data physically resided in the premises of the organization. The data was not available on
the web which restricted its usage and accessibility [5].
Fig 1: Cloud computing Actors
The advancements pursued in the field of science and technology has brought about significant adjustments
across various sectors of the economy. One of the main innovations in computer science and information
technology, for example, is cloud computing. Cloud computing refers to the use of isolated servers
accommodated on the internet to store, manage, and at the same time process information. Stakeholders in
the field of IT share the ideology that it is advantageous, as it enables interested entities to use relevant
resources as a utility, without having to put up and consequently maintain servers within a given locality.
This research paper aims to provide insight on some of the strategies for implementing cloud computing, as
well as some of the risks that come with implementing such programs [6].
Strategies for Implementing Cloud Computing Programs
The process of implementing cloud computing programs is detailed mainly because of the several
steps that the interested parties need to go through in the course of undertaking the project. As such, all
entities should consider employing strategies that are in line with their ventures. The next section highlights
some of the policies that are far-reaching in ensuring a successful implementation of cloud computing
programs.
Planning. Planning is particularly imperative because it provides the interested parties with the
opportunity to analyze and re-evaluate their ability to handle the key steps of the implementation process
contentedly. This includes forecasting on the entire process and the parties who will be involved in
procuring all the needed hardware and software as well as the mechanism of going about the installation
process. Similarly, planning entails forecasting on how the installed software, equipment, and the backup
systems will be tested. Also, plan is far-reaching given that it enables the interested parties to understand
the alternatives at its disposal, the scope of technology and the business model.

Ensuring the Availability of Personnel. Given the number of cloud installation programs that are
currently going on as well as the planned ones, it is essential to take note of the fact that there may be lack
of enough expertise and talent to handle all of them. In that regard, it is imperative for organizations to
ensure that they have key cloud computing experts at their disposal. Interested entities should, therefore,
consider not only recruiting, but also training and retaining available staff. This should include engineers,
architects, and developers. This routinely provides an upper hand and goes a long way in ensuring that the
installation and management process is well under control, mainly because of the sensitivity of work
involved in cloud programming [7].
Security of Data. As highlighted in the introduction, cloud computing involves the process of using
servers in an isolated location instead of installations within a given locality. The process of transitioning
into the remote servers may be quite challenging, particularly because the process of installing cloud-
computing programs is gradual. As such, it is of great significance for the entity involved to ensure that the
process of transitioning to the remote servers is free of hitches. This includes establishing a framework for
evaluating thereby eliminating the risks and liabilities that may be associated with the transitioning process.
In that regard, it is important to ensure that security is managed properly in the course of the transition. This
comes in handy in ensuring that only the right people can access the information contained within the cloud
program.
Risks behind Implementing Cloud Computing Strategies. Cloud computing programs have routinely
been celebrated as the savior of IT, predominantly because it makes it easy for several organizations to
manage bulky data without any difficulty. Nonetheless, recent events have pointed towards the fact that
cloud computing may not be as perfect as it was earlier expected. This section aims to shed more light on
some of the risks that have often been associated with the installation of cloud computing programs [8].
Shared Access. Multitenancy, which refers to the aspect of unrelated clients sharing the same
storage and memory facilities is one of the most disturbing concerns associated with cloud computing. This
is particularly because a client’s private data may lead to a different user, an event that amounts to an
invasion of privacy. In like manner, this concern is worrying because in some situations the clients who
acquire information that is not theirs may be tempted to take up a different identity that is not theirs. The
aspect of shared access has in the recent past also resulted in multitenant exploitation, which is the aspect of
exhausting user resources that belong to a different client.
Cyber-attacks. Another troubling concern that comes with cloud computing programs is cyber-
attacks. It is often known that the storage of data within the internet puts the users at a huge risk of cyber-
attacks. In fact, cloud computing worsens the situation, for a significant amount of data is often stored
within its storage space, hence making many people vulnerable. It is presumed that just as security
measures and other technological aspects become refined, do cyber-attacks. This is proved by the fact that
in as much as cloud companies often get security concerns right; the hackers often become more creative
and even hack personal accounts [9].
Government Intrusion. Government intrusion is one of the most recent concerns that cloud users
have to put up with. This is mainly because quite often governments are forced to invade the privacy of
their citizens and other organizations for national security reasons.
Lack of Cloud Standardization. Another major concern associated with cloud programming is the
lack of standardization. This is mainly because there are no set guiding principles that govern the cloud
programming, a fact that makes it possible for other cloud providers to have superior cloud systems.
Additionally, the fact that different sectors of the economy deal in various fields and have diverse
expectations makes it challenging for a cloud provider to know the extent of the safety of their cloud
program [36].
2. MATERIAL & METHODS
In carrying out this research, “Investigations were based on in-depth review of existing literature and
other secondary information sources to synthesizing the current state of knowledge on the key aspects

being investigated. Cloud computing being a wide area of research and having relatively few literature and
publications available, keywords such as Cloud computing, security threats, cloud services, internet privacy
and data control.” were used to search in online databases for any useful information on the topic.
The CSU digital library, Google Scholar, and ProQuest were among the major research databases that were
explored for relevant information on Near Field Communication [10].
3. RESULTS
In the traditional computing practices, a system administrator or IT manager would be charged with the
duty of ensuring that every employee has appropriate hardware or software that they require to carry out
their day-to-day activities. The role goes past purchase of computers for everybody. The system
administrator has to acquire the necessary software and software licenses for the employees to have all that
they need. The arrival of a new employee would prompt for a need for purchase of new software and to
establish whether the present software license is permissive of an additional user [35].
Cloud computing introduces a practice aimed at having just a single application loaded and eliminating
the need to install suite software for all organization-owned computers. Such an application permits
employees to be logged into a set of Web-based services that host the programs or data needed by the
employees for the routine operations
By definition, cloud computing refers to an attempt to store and access programs or data over the web
other than your computer hard drive or have the hard drive-stored data synchronized certain information
that is resident in the web [11].
Different businesses resort to different cloud services. Businesses are at liberty to choose SaaS, PaaS or
IaaS. In SaaS, A business will make subscriptions for all applications accessed over the internet. In PaaS,
business is involved in the creation of a custom application intended for use by everyone in the company
and IaaS; the business provides a backbone to be let out to other companies [34].
After the extensive study on the respective subject, it has been witnessed that the security aspects of
cloud computing have not been addressed to a great extent. Sternstein and Boulton explained some cloud
computing security standards and pointed out that it is still a developing domain since the security
standards have only been formulated in the mid of the last year. According to a recent study quoted by Help
Net Security, 40% of the executives do not prefer the adoption of cloud computing in their organizations
due to the security and privacy concerns related to it. The study had a sample of 834 executives who were
chosen from 21 countries. An extensive survey of this nature revealed an alarming number regarding their
inhibitions in adopting cloud computing. Mostly all the executives agreed that the technology provided
better performance and efficiency than enterprise data centers but hesitated with its deployment due to
privacy and security issues [12]. The need of the hour to make the technology more accepted among the
masses is to introduce greater security measures in the concept and ensure that all the service providers are
following the cloud computing security standards.
It has been found that cloud computing service providers have already implemented the encryption of
the clients’ data for greater security. Many clients might use the default encryption scheme under the
assumption that it would provide them extreme protection from decrypting attempts [33]. However, if an
intruder cracks the code of the encrypted data, then the intellectual assets of all the organizations can be put
at great risk. Security tokens should be used for the generation of the personalized encryption code; these
tokens should be possessed by few of the chosen representatives of the organization who have the authority
to access the data on the clouds. These tokens would be programmed to display a new code at every cycle,
but all the tokens would be programmed to display the identical code since it is required to be accessed by
all the representatives. The interval for the alteration of the code can be programmed as 24 hours since any
less alteration interval might prove to be a hindrance in the performance level. Thus, the code will be
changed every day and data can be encrypted with a new scheme every day. This will give the companies
greater level of control over the security of their intellectual assets and win their trust over the innovative
technology [13].

Biometric authentication systems are one of the most reliable forms of authentication in the modern
world. They promote convenience as well as uniqueness. A biometric approach should be adapted by cloud
computing providers that would enhance the identification process and introduce more security. The
fingerprints of the authorized personnel should be registered in the enrollment phase of the authentication
and later used as a template for matching purposes in the verification phase [32]. Such authentication will
be useful when the user wishes to access the file server, database of the organization, etc.
4. DISCUSSION
Cloud computing service providers like Amazon, Google and Microsoft invest great capital in buying
the resources, rather than the user. Concerning cloud computing, Tim stated an analogy: “why to buy the
taxi when you can use it.” These services can be used from anywhere in the world via the web. The level of
scalability is almost unlimited in cloud computing. Therefore, it will never cease to cater to any demand of
the user. This aspect fulfills the criterion of the efficiency since companies can offer uninterrupted service
without reduced instances of crash or overload of request [31]. Service providers can offer their service
effectively in both, typical and atypical business conditions, by acquiring as much computing power as
required. Amazon S3 is the preferred cloud solution to be implemented by the US-based shoe
manufacturing company. Amazon S3 is a cloud storage service provided by Amazon. It has a simple web-
service interface that allows storage and retrieval of any amount of data, at any instance from anywhere in
the world. It provides users with highly scalable solutions, reliability, security, and efficiency. The service
is especially important for web developers or organizations who want to develop their applications because
it is designed to simplify web-scale computing. Other than storage and development, Amazon S3 provides
data transfer service such as AWS Govcloud Region for USA government. The recommendation for
Amazon is based on compliance with export control rules and regulation compliance and security and
performance guarantees [14]. The pricing model for Amazon’s S3 is paid as you use. The prices are
computed on a monthly basis based on the services provided and the location of S3 bucket. It attracts no
minimum fee, hence a favorable option for many organizations. Gateway security is offered in three
choices: Gateway-Stored volumes, Gateway-Cached Volumes and Gateway-Virtual Tape Library [30].
One of the most important considerations that apply to the shoe-manufacturing company is import and
export security. AWS provides a simple but robust Import/Export security framework. If there is a
requirement to transfer large amounts of data across different geographic locations, AWS transfers data
directly to the desired location using its high-speed Import/Export internal network. AWS Import/Export
requires the user to authenticate the storage device using a digital signature and a unique job identifier [15].
Ethics in the use Cloud Computing
Remote electronic data storage on the internet is called cloud computing. Data are stored on the large
servers and can be located anywhere. Data are maintained by vendors investing in hardware and software.
The said services are paid for to the vendors monthly by the firm. The firm prefers it because it saves them
considerably besides enhancing the efficiency of the firm. The issues that are being raised pertain to its
privacy, security and its control [29].
The American Bar Association (ABA) Commission on Ethics took the initiative and published an issue
paper in September 2010 highlighting Client Confidentiality and Lawyers' Use of cloud computing
technology. It also raised concerns regarding access to confidential client information, its storage on servers
in the country providing inadequate legal protections; policy issue regarding data ownership; inadequacies
regarding back up data; insufficiency on data encryption; policy issues to notify customers on security
breaches.
Legal Cloud Computing Association (LCCA) established in December 2010 has been assigned the task
to facilitate and adopt cloud computing technology within the legal and ethical framework. The LCCA has
now come forward recommending law firms to protect confidential client information in the following
manner. Law firms should know fully about vendor's security practices, its encryption protocols, storage

procedures and for any likely security breach. Law firms should also know about the persons who have
access to the provider's data storage system and also whether or not those persons are subject to
confidentiality obligations. Lawyer firms should take steps to ensuring that any data uploaded to the cloud
remain their sole and exclusive property. They should also find out from the storage provider if they have
established any server outside the U.S because then laws applicable there will be different [16].
The potential benefits for law firms in using cloud computing are many. Law firms get huge savings in
real estate, IT-set up cost; personnel needed to manage IT systems by outsourcing their needs to the third
party at a fraction of the cost and without any time delay as far as the internet is working. These services
are available 24 hours a day and all days in a year. If the law firms try to establish all this in-house, their
cost of creating infrastructure and in operations will be exorbitant [28].
When law firms resort to cloud computing, it simply means that their all confidential client information
is no more housed within company premises but it is now placed somewhere in cyberspace, which by no
means law firm may ever even identify and that is precisely here the crux of the issue is [17].
In the present state of the highly competitive arena, when the bottom line is equally important, there is
no surprise that even after knowing the drawback of cloud computing, law firms are forced to go for it. Just
before the advent of internet and electronic gadgets, a few years back, most of the law firms outsourced
their copying needs of papers to commercial photocopying companies outside their premises. It is obvious
that the photocopying company’s operations are neither in clients’ nor law firm's control. They are bound
by the only contractual agreement of confidentiality, industry practice, and this continued successfully for
years [27].
Recently, on the Rules of Professional Conduct, Arizona State Bar Committee issued an opinion on
December 9, 2009, that whether a law firm can make use of online storage and retrieval for them and their
client. It stated to observe necessary precautions to safeguard the confidentiality of the information;
however, it did not address the issues of client consent, or supervision that were raised by ethics
committees [26].
The fact is that so far no ruling has prohibited law firms to move to cloud computing. At this juncture, it
can be argued that ethical lawyers need to thoroughly scrutinize the operations of the provider to ensure the
security and confidentiality aspects to safeguard their clients [18].
Benefits of Cloud Computing
Cloud computing provides a series of advantages to an end user and businesses of varied sizes.
Described under this section are some positions that cloud computing offers from the perspective of a
company and the end users.
Cost Efficiency. Cost efficiency in the cloud environment is attained by eliminating the investment
needed for standalone servers and software. By embracing the capabilities of the cloud, organizations are
relieved of licensing fees while eliminating overhead charges and costs that are brought about by data
storage, management, and software updates. Generally, cloud services are available at cheaper rates in
comparison with the conventional approaches can greatly reduce the overall expenditure on IT. The cloud
environment has further been made appealing through the introduction of scalable and convenient charging
models like pay-as-you-go. Through its elimination of capital expenses, cloud computing is better
positioned to help organizations to become more technical or analytical while increasing the cash flow [19].
Environmental Friendliness. Cloud services are basically better placed to save energy if compared with
a common IT infrastructure and the involved computation requires few resources. For instance, if an
organization finds a way to avoid the use of servers, the IT infrastructure is likely to scale down, and this
consumes less power leaving resources freed up. The mode of cloud operation is that the consumed
resources will always be what the system truly needs [25].
Convenience and Constant Availability. Public cloud service providers can avail their utilities
regardless of the location of the end users. This mode of service provision enables users to access
information with ease and is accommodative of varying user needs. Furthermore, service uptime more
often than not guaranteed thus assuring constant resource availability to the end users. It is a common

practice witnessing cloud vendors use several servers to attain maximum redundancy to be able to
automatically spawn alternative instances in cases of system failures [20].
Data Back Up and Recovery. Cloud computing makes data backup and recovery rather simple because
the data is often resident in the cloud other than the physical hard drive. A number of the cloud service
providers avail flexible and reliable backup and recovery solutions. There are instances when the cloud
itself assumes the role of backup repository for data that resides in the local computers.
Performance and Scalability. A cloud instance would be subjected to automatic deployment only if
required. Consequently, the user just makes payments for the required applications or data storage. An
attribute associated with a cloud service is the possibility to have the cloud scaled to meet the varying
demands for IT systems. To attain good performance, cloud systems use distributed architectures offering
high computation speeds. Also, the duty to make sure that excellent running of end-user services is left in
the hands of the provider [21].
Drawbacks of Cloud Computing.
In spite of the numerous benefits surrounding the cloud paradigm, there are drawbacks to using the
cloud tools, and some of the drawbacks are:
Reliance on Providers. A resolution for the cloud services comes with an implicit reliance on a
provider. It is often challenging and at some moments impossible to shift between different providers after
rolling up with them. Users wishing to switch between service providers will find the movement of data
from an old to a new provider somewhat cumbersome and painful. Hence, they might be forced to stick to a
single provider even if they are uncomfortable with the offered services [22].
Security Issues. A company will issue private information and data the moment it leverages the remote
cloud-based infrastructures. The issued information could contain confidential and sensitive data.
Management, protection, and retention of such sensitive information will then be left to the cloud service
providers hence the reliability of the cloud service provider turns to be very crucial. Therefore, companies
seeking cloud services ought to know the risk of their operation being put in jeopardy before a decision to
issue private data or information to the providers. For the selfsame reason, it would not be strange finding
the end users oppose a request to have their data surrendered to a third party unless there is an assurance of
data protection against all authorized uses. Also, cloud-related solutions are mostly exposed over the web
making them vulnerable targets of hackers and malicious users. There is never a security guarantee for
anything featuring over the internet for even the more prominent players are victims of security breaches
and attacks. The interdependency of different system parts makes the situation worse since compromise of
a single machine storing data can make personal information be leaked to an entire world [24].
Limited Flexibility and Control. Because a service or application runs on a remotely located third party
virtual environment, users or organizations have restricted control over the execution and operation of both
software and hardware. Also, the remote software under use is normally deficient in the features found in
the locally running applications [23].
Latency issues. In a cloud environment, latency is used to refer to the time taken for a computer to
interact with a cloud-based server. A user has to be informed about latency because the needed utilities are
no longer stored inside the personal machine. Latency could be a big issue in cloud services though this
depends on cloud server location, service quality and the user’s geographical proximity to the server
location.
5. CONCLUSIONS
Cloud computing is an increasing revolution in the IT sector. However, the paradigm is faced by
some drawbacks as well as benefits, so this calls for users to strike a wise balance between the two sides.
Whereas the use of the cloud services can present companies with a series of benefits and help get a notch
higher regarding technology, it should be understood that confident IT-based decision or resolutions to
adopt the cloud services could be misguided. Thus, it is recommended that a whole process of due diligence

be carried out during the vendor assessment stage of implementation of a cloud service. In case of need, the
persons involved should seek counsel from independent parties to ensure that the product or service
offering is in harmony with the business needs. Cloud computing is unquestionably one of the
revolutionary advancements in the world of technology. The fact that cloud computing makes it easy to
store, manage and process data is an added advantage given that most of the organizations always have to
deal with big data. Any organization that is intent on implementing cloud computing should, therefore,
consider going about a comprehensive planning process, for that ensures that all aspects of the
implementation process are taken into consideration. Over and above, organizations should ascertain that
they put all the necessary systems in place, for that guarantees that some of the concerns highlighted above,
such as the invasion of privacy are averted.

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