Business Research: Cloud Computing Advantages and Disadvantages

This report provides a comprehensive analysis of cloud computing, focusing on its advantages and disadvantages for businesses. It begins by defining cloud computing and highlighting its benefits, such as reduced IT costs, scalability, business continuity, collaboration efficiency, flexibility, automatic updates, portability, and manageability. The report then delves into the disadvantages, including downtime, security issues, and limited control. It further explores methods to mitigate these challenges, such as implementing end-to-end encryption, regularly updating software, utilizing single sign-on solutions, and establishing policies for handling intellectual property. The methodology section outlines the research design, area of study, sample population, sampling technique, data collection and presentation methods, data analysis techniques, and the significance and limitations of the study, concluding with recommendations for businesses considering cloud computing adoption. This report serves as a valuable resource for understanding the complexities of cloud computing and making informed decisions.

Running head: CLOUD COMPUTING
TOPIC- ADVANTAGES AS WELL AS DISADVANTAGES OF CLOUD COMPUTING
FOR BUSINESS
STUDENT NAME GADI DEVENDRA
STUDENT ID SP3272
SUBJECT BUSINESS RESEARCH
Author’s Note

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Table of Contents
Tables of contents........................................................................................................................2
1. Introduction..................................................................................................................................4
1.1. Project objective....................................................................................................................4
1.2 Project scope..........................................................................................................................5
1.3 Hypothesis.............................................................................................................................5
2. Literature Review........................................................................................................................6
2.1. Advantages of Cloud computing for business......................................................................6
2.2. Disadvantages of cloud computing for Business..................................................................9
2.3 Methods for mitigating the challenges of cloud computing in business.............................10
3. Methodology..............................................................................................................................12
3.1. Design.................................................................................................................................12
3.2. Area of study.......................................................................................................................13
3.3 Population............................................................................................................................14
3.4 Sampling technique ...........................................................................................................14
3.5. Data collection and presentation.........................................................................................14

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3.6 Data analysis and presentation techniques..........................................................................15
3.7 Significance of the study ....................................................................................................15
3.8. Limitation of the study........................................................................................................15
3.9 Summary..............................................................................................................................15
3.10 conclusion..........................................................................................................................15
3.11 Recommendations..............................................................................................................16
4.0 Appendix 1...........................................................................................................................18
5.0 Appendix 2...........................................................................................................................18
6.0 References................................................................................................................................20
1. 1 Introduction
The paper mainly reflects on the advantages as well as disadvantages of cloud computing
for business. The main of the paper is to reflect the significance of cloud computing in business
organizations. According to Avram (2014), cloud computing is defined as a type of computing
that mainly relies on sharing various resources of computing rather than having personal devices
or local servers for handling different type of applications. It is identified that cloud computing
helps in offering number of benefits to the business organization which include enhancing
scalability, business continuity, collaboration efficiency as well as flexibility of work practices
(Oliveira, Thomas and Espadanal 2014). However, it is found that the utilization of cloud

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computing also creates number of challenges for the business that include downtime, privacy and
security, vulnerability, flexibility and platform dependencies.
In this assignment, numbers of journal articles are reviewed in order to identify the
advantages as well as disadvantages of cloud computing for business. The paper also provides
number of strategies that are helpful in resolving the challenges that the business face by moving
to cloud.
1.2Project objective
The main objectives of the project are as follows:
 To identify the advantages of cloud computing for business organizations
 To identify the disadvantages of cloud computing for business
 To illustrate methods as well as strategies that are helpful in mitigating the challenges of
cloud computing within an organization.
3. Project scope
The project scope illustrates that number of journal articles are reviewed for elaborating the
advantages as well as disadvantages of cloud computing for business. The paper also helps in
reflecting the significances of cloud computing in benefiting organizations by reducing cost and
for allowing the business organization to concentrate properly on their business rather focusing
on infrastructure as well as IT based issues.
1.3 Hypotheses.

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H0: Cloud computing provide the best mode of storing data in an organization
H1:. Cloud computing does not provide the best means of storing data in an organization

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2. Literature Review
2.1. Advantages of Cloud computing for business
According to Khanagha, Volberda and Oshri (2014),most business organisations are
shifting from data to cloud computing due to the advantages and benefits of cloud computing. .
It is identified that cloud computing helps in offering number of benefits to the business
organizations. Also it helps in networking businesses at any give time or place. The benefits
which are provided are as follows:
Reducing IT costs: It is stated by Gai and Steenkamp (2014), that cloud computing
reduces the cost of maintenance and management. It reduces the equipments to be bought as it it
uses its service provider. It is opined by Sultan (2014),there is reduction in cost as system
upgrades are incorporated in the system contract. In addition to this, cost of manpower in
reduced. Provides an enabling environment which allows businesses to scale their storage.
Scalability: Chou 2015 argues that by businesses allowing flexibility they are able to
scale different operations and requirements in the organization. Cloud computing does not
require organizations to purchase and install expensive upgrades as it is able to solve that easily.
Also there is time saving which is used for running the businesses.
Business Continuity: According to Rittinghouse and Ransome (2016), data and system
protection is the most significant requirement in the business plan. Data is backup in the cloud
remains even if the organization systems fail (Hashem et al. 2015). This data can be accessed at
any time because it is securely stored within the cloud. It allows easy running of the organization
as reduces mitigation of any downtime.
Collaboration efficiency: It is identified by Tsohou, Lee and Irani (2014) that
collaboration in business organization by utilizing cloud environment helps the business in

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providing the ability to share as well as communicate more easily outside various types of
traditional methods. With cloud computing you access the data from a different organization
regardless of the location, whereby the project manger can access the information easily .It also
provides a platform for sharing of files to the advisors for easy assessment .
Flexibility: Cloud computing allows flexibility of the employees in to become quite
flexible in different work practices. The employees can easily access data from home with the
help of commute. In addition to this, the employees can also access data while they are off site as
the virtual office can be connected quite easily as well as quickly.
Access to automatic updates: According to Rai, Sahoo and Mehfuz (2013), the cloud
computing service provider helps in allowing employees to access automatic updates as it is
included within the service fee. It is identified that based on the cloud computing service
provider, the system will utilize the facility of automatic update for updating the system with
various types of latest technology. These generally include various types of up-to date versions
of software for upgrading servers as well as computing processing powers.
Portability: Cloud computing within the business organization helps in offering
appropriate benefit of portable applications (Goyal 2014). It is identified that business
applications as well as data are generally moved from various infrastructure of computing to the
cloud without any facing difficulty by providing proper business flexibility for managing both
data as well as applications.
Manageability: It is opined by Chou (2015), Cloud computing helps in providing
enhanced as well as simplified IT management and capabilities of maintenance through central
administration of resources, SLA backed agreements as well as vendor managed infrastructure. It
is identified that It infrastructure related updates as well as maintenance are generally eliminated

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as various types of resources are generally maintained with the help of service provider. The
business can utilize simple interface that is web based for accessing application, software as well
as services without appropriate need of installation (Chang, Walters and Wills 2013). SLA helps
in ensuring timely as well as guaranteed management, maintenance as well as delivery of various
IT services.
2.2. Disadvantages of cloud computing for Business
It is identified that despite of the advantages of cloud computing, there are number of
disadvantages that the organization faces due to their move towards business organization. The
disadvantages include:
Downtime: Considered as one of the main challenges of cloud computing because most
cloud computing files are internet based. If inernet connection is unavailble cloud computing
becomes difficult to operate and use. Ali, Khan and Vasilakos (2015) argues that improper
Internet connection is a challenge to cloud computing service providers. It is significant to
reduce these challenges to ensure appropriate level of service to customers and staff.
Security Issues: According to Stieninger and Nedbal (2014), all discussion that involves
data should provide customer privacy mostly when manging sensitive data Cloud servers should
always safeguard and manage data but on the other side remote access largely depends on the
user.If proper information as well as data related with the business organization are hacked or
accessed then it, will bring a great disaster for the business organization.
Limited control: It is stated by Yeboah and Essandoh (2014) that cloud service
providers mainly helps in managing and monitoring the cloud environment. Users are not given
full access. They only have ability to manage applications and data but have no acccess to

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administrative keys. Proper risk assessment is required before handing over it to the business in
order to mitigate this type of risk .
2.3 Methods for mitigating the challenges of cloud computing in business
It is identified that the business organizations faces number of cloud computing risks that
must be mitigated properly so that the business does not face any loss. The methods that are
helpful in mitigating the challenges of cloud computing within business are as follows:
Implementation of end-to-end encryption: It is stated by Stieninger and Nedbal (2014)
that end-to-end encryption for cloud storage helps in decreasing the likelihood of the data that is
being breached. It is identified that most of the cloud solutions have encrypted downloads as well
as uploads but it does not store encrypted data. It is identified that the method with very much
least amount of risk generally need the data encryption prior to upload.
Updating software regularly: The business organizations must not forget to update the
in-house software. If they were running outdated software then the organization would be at risk
despite of party audits as well as encryption.
Utilizing single sign solution for adding security: According to Demirkan and Delen
(2013), it is identified that depending upon the size of the business organization, different type of
user accounts are generally created for various cloud servers. It is analyzed that single users have
different account with various passwords and as a result, the entire operation become much more
complex for both the administrator as well as user. It is identified that by utilizing single sign on
environment method is quite useful in resolving this problem. It also helps in reducing the
number of various types of potential security weakness.
Polices as well as procedure for handling IP:It is identified that not all locations are
ideally suited for the cloud computing applications. It is very much important to ensure that

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various policies help in outlining sensitive information for handling data in context to cloud. It is
opined by Goyal (2014) that the business organization must identify various types of top
categories of data for developing data loss prevention that is dependent on various types of
detection rules for protecting data as well as information
3.0 Methodology

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3.1Research design
The researcher will use waterfall model. This approach is very simple to understand and
manage due to flexibility of the model. It adopts a formal step by step approach that
moves logically from one step to another
The waterfall model is a traditional structured method that assumes discrete sequential of
development, and one in which one stage has to be completed before moving to the next stage of
development.
The main constraint involved with waterfall model is that it’s difficult to go back to a phase that
has already been completed
STEPS IN WATERFALL MODEL.
Requirements gathering
And analysis