Advantages and Disadvantages of Cloud Computing for Businesses

This paper evaluates the various pros and cons of using cloud computing in businesses. The advantages and disadvantages of cloud computing in business are examined.

Running head: ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
Advantages and Disadvantages of Cloud Computing for Businesses
Student:
Institution:
Author’s Note:

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
1
1. Introduction
Cloud computing in computer operations allows constant access of all shared
resources and is accepted by all users.1 The technology uses the internet to transfer
information anywhere in the world. Cloud computing is a significant means of lowering IT
infrastructure costs for businesses. Applications are simple and easy to use while
maintenance is low and highly manageable.2 As such, this paper evaluates the various pros
and cons of using cloud computing in businesses.
2. Project Objectives
The primary objective of the study is to determine the advantages and disadvantages
of cloud computing in business. The specific objectives are:
1) To examine the advantages of cloud computing in any business
2) To evaluate the disadvantages of cloud computing to business
3. Project Scope
The project seeks to determine the merits and demerits of cloud computing within any
business or company. Moreover, it will be helpful in knowing the delivery of services
through the Internet.
1 Dinh, Hoang T., Chonho Lee, Dusit Niyato, and Ping Wang. "A survey of mobile cloud computing:
architecture, applications, and approaches." Wireless communications and mobile computing 13, no. 18 (2013):
1587-1611.
2 Fernando, Niroshinie, Seng W. Loke, and Wenny Rahayu. "Mobile cloud computing: A survey." Future
generation computer systems 29, no. 1 (2013): 84-106.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
2
4. Literature Review
4.1 Uses and Importance Cloud Computing in Businesses
Cloud computing refers to the successful delivery of all types of computer operations
including databases, analytics, servers, software, storage, networking and much more that
occurs especially in the internet.3 In today’s world, most of the big organisations have taken
the technology of cloud computing within their business. The most significant uses of cloud
computing in any particular business are as follows:
i) App creation or service
ii) Data storage, back-up and recovery
iii) Web or blog hosting
iv) Audio or video Streaming
v) Software delivery on demand
vi) Data analysis to identify patterns and make projections
Cloud computing is significant to any business because of various reasons including:
i) Anytime and anywhere access
ii) Avoiding disasters
iii) Delivering services with higher security
iv) Makes business environment-friendly
4.2 Advantages of Cloud Computing in Businesses
Cloud computing continues to advance leading to reduction of delivery cost,
computation costs, hosting of application and content storage.4 The most significant
3 Garg, Saurabh Kumar, Steve Versteeg, and Rajkumar Buyya. "A framework for ranking of cloud computing
services." Future Generation Computer Systems 29, no. 4 (2013): 1012-1023.
4 Pearson, Siani. "Privacy, security and trust in cloud computing." In Privacy and Security for Cloud Computing,
pp. 3-42. Springer, London, 2013.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
3
difference between cloud computing and other traditional concepts is that it widens the
horizon within the boundaries of the organisation. Cloud computing is responsible for
streamlining all the processes and procedures of information technology, thus making the
regular computing easier.5 There are various other advantages of this particular technology
that are helpful for any company or organisation. The most significant advantages of cloud
computing for any business include: easy implementation, easy accessibility, requires no
hardware, low cost per head, high scalability and flexibility, among others (See appendix A).
4.3 Disadvantages of Cloud Computing in Businesses
Despite having such vast and significant advantages, cloud computing does comprise
of various disadvantages that are incredibly vulnerable and threatening for any particular
business,6 including lack of control, dependency on Internet, regulatory Restrictions, among
others (See Appendix B).
4.4 Justification
The current project seeks to fill a gap in research regarding the pros and cons of cloud
computing for businesses. The findings will be helpful to organisations that already use cloud
computing and those that may want to start using cloud computing. The project will
contribute to the existing pool of knowledge which will be crucial for students and other
researchers who may be interested in related topics.
5. Research Question
The project is guided by three research questions:
5 Xiao, Zhifeng, and Yang Xiao. "Security and privacy in cloud computing." IEEE Communications Surveys &
Tutorials 15, no. 2 (2013): 843-859.
6 Fernando, Niroshinie, Seng W. Loke, and Wenny Rahayu. "Mobile cloud computing: A survey." Future
generation computer systems 29, no. 1 (2013): 84-106.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
4
5.1 Primary question:
1) What are the advantages and disadvantages of cloud computing in business?
5.2 Secondary questions:
1) How do businesses benefit from cloud computing?
2) What are the challenges of cloud computing for business?
6. Research Design and Methodology
The research design and methodology outline the plan of the project. The project will
combine both a desktop study and a survey design to determine the pros and cons of cloud
computing for businesses. An inductive approach will be used to search for patterns and
develop explanations. The project will utilise both qualitative and quantitative methods of
data collection and analysis to meet the research objectives. Qualitative methodologies will
be essential in collecting data to answer the research questions. Quantitative methodologies
will be helpful in retrieving statistical information on the merits and demerits of cloud
computing in business.7 Accordingly, some databases will be used in collecting useful
material including but not limited to the Google Scholar and Google Books.
6.2 Sampling and Sample Size
The project will use stratified random sampling to select a representative sample from
the general population of workers in business using cloud computing in Australia. The
research will use a sample size of 60 people divided into three strata according to the level of
occupation from both Small and medium enterprises and large enterprises.8
7 Mark, Saunders, Philip, Lewis, and Adrian, Thornhill. Research methods for students (7th ed.). Pearson
Publishers, 2015.
8 Alan, Bryman, and Emma, Bell. Business research methods. Oxford University Press, 2015.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
5
6.3 Data Collection
Data will be collected using interviews.
6.4 Reliability and Validity
Interviews do not require a pilot study to test for reliability and validity. However, the
researcher can ask several friends to detect any ambiguities and inconsistencies in the
interview questions.
7. Research Limitations
Few studies have been successfully conducted to analyse the status of cloud
computing for business limiting in the number of available resources to complete the project.
Further locating businesses that use cloud computing and moving there to seek information
will not be an easy task due to time and travel resources.
8. Time Schedule
The project is subdivided into five sections expected to last between two and three months as
illustrated by a Gantt chart (See Appendix C).
9. Conclusion
This paper has outlined the concept of cloud computing in businesses. Several
benefits and challenges of this technology within any specific business are outlined.
Furthermore, the importance and significance of this technology are provided. The paper also
describes the project scope, project objectives, research questions, research design and
methodology, and the limitations of the project.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
6
10. References
Arora, Rachna, Anshu Parashar, and Cloud Computing Is Transforming. "Secure user data in
cloud computing using encryption algorithms." International journal of engineering research
and applications 3, no. 4 (2013): 1922-1926.
Bryman, Alan, and Emma, Bell. Business research methods. Oxford University Press, 2015.
Dinh, Hoang T., Chonho Lee, Dusit Niyato, and Ping Wang. "A survey of mobile cloud
computing: architecture, applications, and approaches." Wireless communications and mobile
computing 13, no. 18 (2013): 1587-1611.
Fernando, Niroshinie, Seng W. Loke, and Wenny Rahayu. "Mobile cloud computing: A
survey." Future generation computer systems 29, no. 1 (2013): 84-106.
Fernando, Niroshinie, Seng W. Loke, and Wenny Rahayu. "Mobile cloud computing: A
survey." Future generation computer systems 29, no. 1 (2013): 84-106.
Garg, Saurabh Kumar, Steve Versteeg, and Rajkumar Buyya. "A framework for ranking of
cloud computing services." Future Generation Computer Systems 29, no. 4 (2013): 1012-
1023.
Mark, Saunders, Philip, Lewis, and Adrian, Thornhill. Research methods for students (7th
ed.). Pearson Publishers, 2015.
Pearson, Siani. "Privacy, security and trust in cloud computing." In Privacy and Security for
Cloud Computing, pp. 3-42. Springer, London, 2013.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
7
Xiao, Zhen, Weijia Song, and Qi Chen. "Dynamic resource allocation using virtual machines
for cloud computing environment." IEEE transactions on parallel and distributed systems 24,
no. 6 (2013): 1107-1117.
Xiao, Zhifeng, and Yang Xiao. "Security and privacy in cloud computing." IEEE
Communications Surveys & Tutorials 15, no. 2 (2013): 843-859.

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
8
11. Appendix
Appendix A:
Appendix B:

ADVANTAGES/DISADVANTAGES OF CLOUD COMPUTING
9
Appendix C:
TIME/
ACTIVITY
Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10
Preparation
Pilot Study
and Data
collection
Data
Analysis
Discussion
Conclusion
and
Presentation