Cloud Computing Technology in Business: A Critical Analysis

Desklib provides solved assignments and past papers to help students succeed.

ENGT 5214 - STUDY SKILLS AND RESEARCH METHODS
{DMU}

Table of Contents
Introduction......................................................................................................................................3
Critical Literature review.................................................................................................................3
Overview of cloud computing......................................................................................................3
Key Features of Cloud Computing Technology..........................................................................4
Merits of Cloud computing technology.......................................................................................5
Demerits of Cloud Computing Technology.................................................................................6
Strategies for Sustainable Cloud computing uses........................................................................7
Conclusion.......................................................................................................................................8
Reference List..................................................................................................................................9
2

Introduction
Cloud computing is defined as “internet-based computing”, where various services such as
applications, storage, and servers are provided to computers of an organisation by means of the
Internet. In cloud computing technology, the services and applications are accessed through the
web instead of a user's hard drive. Cloud computing technology also eases the delivery of
several other services such as databases, storage, analytics, and software, thus lowering operating
costs of an organisation. This study uses six peer-reviewed articles in critical analysis of cloud
computing technology in businesses.
Critical Literature review
Overview of cloud computing
Ever since its inception, cloud computing technology has received increasing interest from
several enterprises (Almorsy et al., 2016). Here, an application is made to run on a connected
server instead of running it on a local device like smartphone, tablet or PC. The cohesive of
cloud computing technology basically relies on the combined collaboration among various IT
staff and their executives. Combine collaboration plays an important role in driving and
achieving a successful outcome in business. As stated by (Assunção et al., 2015), it is an
effective strategy in order to make a business successful. It helps to accelerate the growth of an
organisation, helps in transforming business and also empowers workforce of an organisation.
When integrated seamlessly, cloud computing technology gives desirable results. This is because
cloud computing technology focuses on making use of already existing investment instead of
replacing them. In a typical cloud computing technology, three models of delivery are used.
They are SaaS, laaS, and PaaS. There exist four models of deployment (Chang, 2015). They are
a community, public, private or hybridised.
3

Figure: Schematic Diagram of Cloud computing architecture
(Source: Chang, 2015)
Characteristics of Cloud Computing
1. Self-service: Cloud computing technology allows businesses to control the capabilities of
computing, without any interaction from the ISP. Hence, the user can access storage and
applications without being relied on their internal service provider (Chang et al., 2016).
Since the storage of data is done on a virtualized network, hence, the hardware can be
used by several consumers. This makes self- service an efficient cost-reducing solution.
2. Infinite Network access: Cloud computing technology promotes network access by
employing several technology devices and thereby providing boundless network access
4

(Almorsy et al., 2016). This enables people to collect their required information from
anywhere and using any device.
3. Rapid elasticity: This is a term applied in cloud computing for an effective ability to
provide scalable services. The capabilities of a cloud computing technology available for
hire can be scaled up or scaled down rapidly facilitating the purchase of any amount to
the end users at any time (Ramachandran & Chang, 2016). This feature enables users to
request for extra space in the cloud automatically.
Merits of Cloud computing technology
In cloud storage, remote maintenance of data is done along with their management and back up.
This service enables users, online storage of their files so that it is possible for them to access
their files from any place using the internet. There are more than 800 business organisations
worldwide those have taken competitive advantage by adopting cloud storage technology
(Hashem et al., 2015). The advantages are given below.
1. Cheap: The most important advantage of cloud computing technology is its costs
efficiency. Business organisations, with the help of cloud computing, may save their
capital cost (Laudon & Laudon, 2016). Cloud computing technology also minimising of
infrastructure thereby, contributing to more reduction in operational costs. Hence, even
smaller business organisations may also take the advantages of cloud computing
technology. Also, there requires no IT investment capital for using cloud computing
technology.
2. Reliability: Cloud computing technology is more reliable in comparison to in-home IT
infrastructure. Majority of providers offers a “Service Level Agreement” to business
corporations to manage their available databases. This guarantees 99.99% probability of
availability of services (Assunção et al., 2015). Thus, organisations are benefited because
of redundancy in IT resources.
3. Flexibility in Accessing data: This technology allows users to access data irrespective of
time and place. Hence, the efficiency and productivity of an organisation are maximised
because cloud computing technology ensures that data is accessible always. Hence, there
develops an easy collaboration by sharing data among several users, stationed in multiple
places (Chang, 2015).
5

4. Recovery efficiency: Within a short time period, cloud computing technology has the
capability to deliver faster and more accurate data and applications (Laudon & Laudon,
2016). Hence cloud computing technology is an efficient tool of data recovery in case
there is a threat of data loss of theft.
5. Lack of Hardware requirement: As all the services are hosted in the cloud (internet),
there is no requirement of any physical storage. Hence organisations get benefitted
because their expenditure on hardware components are greatly reduced (Assunção et al.,
2015).
Demerits of Cloud Computing Technology
● Downtime: Downtime is referred to as a major drawback of cloud computing
technology. Since this form of technology is entirely based on technology, hence, there
always remains the possibility of service outrage (Chang, 2015).
● Privacy and Security related issues: Although the providers of cloud computing
technology make use of excellent standards in security, the security issues relating to
storing crucial data and information on external drives always remains (Hashem et al.,
2015). There have been cases of theft of data from cloud storage. Theft of data is very
dangerous as it may even lead to shutdown of an organisation.
● Control Limitations: Cloud computing infrastructures are completely owned, monitored
and managed by the cloud service providers. Hence customers usually have minimum
control over the data and information stored in the cloud.
In addition to these drawbacks, cloud computing may sometime prove to be costly (Assunção et
al., 2015).
Strategies for Sustainable Cloud Computing
The drawbacks of this technology mentioned can be minimised, although it is not possible to
eliminate them completely. The business organisations may implement security at each level of
their deployment (Assunção et al., 2015). Also, the accessibility of data and information should
be limited by the organisations. Multi-factor authentication processes should be implemented for
every account involved in accessing sensitive data. In the case of collaborative businesses, the
employees generally do not have a fixed office where they can work. Hence, with the help of
cloud computing, employees may access their company's files from anywhere and at any time.
6

Web-based organisations suffer from lack of funding and capital costs (Laudon & Laudon,
2016). There involves a basic strategy for the adoption of a cloud model. Such strategies include
a series of different steps like assessment planning and optimisation. Large business
organisations generally tend to use private cloud computing. The main strategy behind such a
choice is that private cloud computing prevents third-party organisations to hack and misuse
their data and information. Thus, in a private cloud, data can be stored safely.
Significance of Cloud computing in modern business world
For small start-ups, cloud computing plays an effective role in reducing IT costs. It also provides
the benefit of latest technologies that are required for a small organisation in order to compete
with large organisations. In large scale organisations, cloud computing technology may play an
important role in making the organisation more effective and efficient (Chang et al., 2016). On
the other hand, large business enterprises have taken the advantages of cloud computing in
increasing their productivity. In a large scale enterprise, business executives have to work every
time and hence, cloud computing has made easier for them to access the company's files and
resources at any time and anywhere. Moreover, in a large enterprise, employees can make use of
cloud technology to send files (Ramachandran & Chang, 2016). The files are then stored at a
central place where everyone can view them. This reduces complications and forbids the creation
of conflicting files of different titles and formats. Large enterprises also have the resources to
install strong firewalls and anti-hacking technologies (Assunção et al., 2015). Hence, the fear of
theft of files and data from the cloud is greatly reduced for them. Thus, they can effectively
utilise cloud computing in enhancing sustainable business.
7

Figure: Various delivery models of cloud computing
(Source: Ramachandran & Chang, 2016)
Conclusion
This literature review provides an analytical discussion of the concept of a contemporary
technology, cloud computing. Cloud computing has proved to be an important tool in the modern
business world. It is a boon for various business organisations because it provides security to
their data and information and also helps in lowering their capital costs. In the above study, the
key features of cloud computing have been provided along with their advantages and
disadvantages have also been provided. A brief discussion of the ways how these drawbacks can
be reduced has been discussed. The uses of cloud computing in the aspects of small business
organisations and large business organisations have also been provided in this study. These
would help in understanding the aspects by which large and small scale business organizations
are benefited from cloud computing technology.
8

Reference List
Almorsy, M., Grundy, J. & Müller, I., 2016. An analysis of the cloud computing security
problem. arXiv preprint arXiv:1609.01107, 1(1), pp.43-66.
Assunção, M.D. et al., 2015. Big Data computing and clouds: Trends and future directions.
Journal of Parallel and Distributed Computing, 79(1), pp.3-15.
Chang, V., 2015. A proposed cloud computing business framework. New Yorl: Nova Science
Publisher.
Chang, V., Kuo, Y.H. & Ramachandran, M., 2016. Cloud computing adoption framework: A
security framework for business clouds. Future Generation Computer Systems, 57(1), pp.24-41.
Hashem, I.A. et al., 2015. The rise of “big data” on cloud computing: Review and open research
issues. Information systems, 47(1), pp.98-115.
Laudon, K.C. & Laudon, J.P., 2016. Management information system. London: Pearson
Education.
Ramachandran, M. & Chang, V., 2016. Towards performance evaluation of cloud service
providers for cloud data security. International Journal of Information Management, 36(4),
pp.618-625.
9