Dissertation: Why Businesses Should Adopt Cloud Computing Technologies

This dissertation examines the compelling reasons for businesses, specifically small and medium enterprises (SMEs), to adopt cloud computing technologies. The study begins with an introduction outlining the increasing competition in the business sector and the limited resources available to SMEs, which often hinder their ability to compete effectively. The research then delves into the rationale behind the study, identifying the research issue as the need for SMEs to leverage technology for enhanced competitiveness and efficiency. The dissertation establishes research aims and objectives, including developing a feasible study for SMEs, identifying the benefits of cloud computing, and assessing its significance in data storage. The literature review covers the concept of cloud computing, the importance of SMEs, cloud computing's application in SMEs, and various service models like Infrastructure as a Service (IaaS). The research methodology section details the research philosophy, data collection methods (including interviews), sampling, and ethical considerations. The findings are presented through thematic analysis, leading to conclusions and recommendations for cloud computing adoption. The study also includes a Gantt chart to illustrate the research timeline and a reflective statement. Overall, the dissertation provides a comprehensive analysis of the advantages and disadvantages of cloud computing, offering valuable insights for SMEs looking to improve their business operations and achieve a competitive edge.

DISSERTATION
ON
“WHY BUSINESS SHOULD ADOPT CLOUD
COMPUTING”
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TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION..........................................................................................................4
1.0 Title............................................................................................................................................5
1.1 Background of the study............................................................................................................5
1.2 Rationale of the study................................................................................................................5
1.2.1 What is the research issue?.......................................................................................5
1.2.2 Why it is an issue?....................................................................................................6
1.2.3 Why it is an issue now?............................................................................................6
1.2.4 What could this research shed light on?...................................................................6
1.3 Research aim and objectives......................................................................................................6
1.3.1 Aim:..........................................................................................................................6
1.3.2 Objectives:................................................................................................................6
1.3.3 Research questions....................................................................................................7
1.4 Framework and analysis............................................................................................................7
1.5 Gantt chart..................................................................................................................................8
CHAPTER 2 LITERATURE REVIEW.............................................................................................10
2.1 Concept of Cloud Computing..................................................................................................10
2.2 Importance of Small and Medium Enterprises........................................................................12
2.3 Cloud Computing and SMEs...................................................................................................13
2.4 Infrastructure as a Service (IaaS).............................................................................................14
2.5 Merits of Cloud Computing.....................................................................................................15
2.6 Demerits of Cloud Computing.................................................................................................16
CHAPTER 3 RESEARCH DESIGN AND METHODOLOGY........................................................17
3.1 Research Philosophy................................................................................................................17
3.2 Data Collection Method...........................................................................................................18
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3.3 Sampling Method.....................................................................................................................18
3.4 Accessibility Issues..................................................................................................................19
3.5 Ethical Issues...........................................................................................................................19
3.6 Data Analysis...........................................................................................................................19
3.7 Research Design......................................................................................................................19
3.8 Research Limitations...............................................................................................................20
CHAPTER 4 FINDINGS/ANALYSIS...............................................................................................21
4.1 Thematic analysis.....................................................................................................................21
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS........................................................25
5.1 Conclusion...............................................................................................................................25
5.2 Recommendations....................................................................................................................25
REFLECTIVE STATEMENT............................................................................................................27
REFERENCES...................................................................................................................................28
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CHAPTER 1 INTRODUCTION
Due to technological innovation and development, level of competition is increasing in the
business sector and this innovation depletes the value of existing skills and competencies. Small and
medium enterprises have limited availability of resources. Hence, they are unable to compete at the
market place (Fernando, Loke and Rahayu, 2013). This is the basic reason that small medium
enterprises have less competitive advantage as compared to others. Further, they are also unable to
access modern technologies and as a result, this affects all IT operations. However, these enterprises
play a crucial role for the economic development since they generate numerous opportunities for
employment. This thereby declines the need of importing products from different markets. SMEs
(Small and medium enterprise) provide many opportunities to people and along with this, they also
produce products at a lower cost (Rittinghouse and Ransome, 2016). This can be improved through
implementing new strategic directions for the business as through this, business entities would be
able to use technological resources in an optimum manner. Right use of such sources could also
assist business entities to attain competitive advantage in the international market place.
All organizations working on small scale should response positively to the market conditions
so as to manage supply and demand. Henceforth, considering this scenario, SMEs should
implement a new strategy so as to involve technological aspects at a higher extent. Moreover, this
can also assist in reducing operational cost (Li and Lou, 2013). In the era of globalization, business
entities should use massive computing power and business insights for the purpose of acquiring
competitive advantage. SMEs usually face many barriers in the global market and to overcome such
issues, advanced IT infrastructure can be developed. In this respect, cloud computing can be utilized
to address all prevailing inefficiencies in small medium enterprises. Cloud computing is a part of
information technology which has potential to meet the growing demand. The source is useful in
delivering different facilities to organizations like information storage, resource sharing and auto
scalability (Xu, 2012). With the help of cloud computing, new business applications and software
can be used to enhance the level of competitiveness and through this, business can also adopt new
ways to manage the business aspects. IT services can be accessed at the time of requirement and
with this, organisational processes can be managed in an adequate way. This is highly effective in
strengthening IT resources of organizations while acquiring and installing infrastructure.
It includes hardware and software platforms that cloud providers provide to the
organizations. Hence, with the use of cloud computing, companies can switch from computing
product to adapting service which is usually provided by data centres through internet sources (Dinh
and et.al., 2013). There is a difference between both the aspects such as cloud user owns cloud
product. However, computing services are delivered to cloud users and this can be utilized anytime
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when required. Thus, business operations and functions can be improved through quick delivery
service and this is also useful for the purpose of transforming existing business structure. As per the
statistics, cloud computing has generated employment opportunities for around 2.4 million people
in Europe and apart from this, Finland is another cloud computing user among the well established
enterprises (Zissis and Lekkas, 2012). From historical point of view, concept of cloud computing
was introduced by Licklider. However, it became more advanced over time in IT field. Cloud
computing is dependent on different variables such as web association, grid computing and
virtualisation. It has all potentials to expand the IT networks and hence, business challenges can be
reduced prominently. Cloud computing involves third party; therefore, this increases the risk of data
handling and protection. The concept is integrated with several positive and negative aspects. In the
present study, detailed explanation is given on all such facets (Xu, 2012).
1.0 Title
“Why SME’s should adopt cloud computing for retail?”
1.1 Background of the study
Competition level is augmenting as business market is growing rapidly. Thus, in order to
meet the changed market requirements, organizations should upgrade their abilities and innovation
for the purpose of delivering advanced products and services. However, it is also identified that
SMEs have less competitive advantages due to limited resources and confined access to modern IT
services. Hence, the adoption of cloud computing can assist businesses to get solutions for these
aspects. Along with this, technological challenges prevailing in the global market can be reduced.
All previous studies have focused on significance of cloud computing in the area of innovation and
business agility. The present study has been conducted for the purpose of analysing reasons for
which businesses should adopt cloud computing. Thus, according to the research problem,
significance of cloud computing are mentioned in the subsequent study.
1.2 Rationale of the study
1.2.1 What is the research issue?
Present research study discusses the major advantages and disadvantages of cloud
computing technology. Thus, as per the purpose of study, detailed description has been given
regarding the same subject and its benefits to Finnish SMEs retail. Cost of the operations can be
reduced through informing the organizations about investment required in the concept of proposed
aspect. Study has been discussing the benefits of cloud computing; hence, description has been
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given so that businesses can adopt the processes. Main aim of the research is to determine the
significance of cloud computing for small medium enterprises.
1.2.2 Why it is an issue?
It is an issue now because organizations are experiencing different issues and challenges in
cloud computing processes. The current study has been discussing several methods through which
issues in this technique can be reduced. Hence, it can be said that in order to reduce all the issues,
present study has been made.
1.2.3 Why it is an issue now?
The research work is emphasizing on small medium enterprises so that they can comprehend
the need of cloud computing in managing business activities. The study is useful for those readers
who wish to get some knowledge regarding this subject matter. It is an issue now because recently,
numerous business entities have changed the way of managing cloud services and they are facing
many issues in managing things.
1.2.4 What could this research shed light on?
Present research is emphasizing on the use of cloud computing for small-medium
enterprises. Along with this, it is also focusing on the ways through which issues in cloud
computing can be reduced.
1.3 Research aim and objectives
1.3.1 Aim:
Aim: Main aim of present research study is to evaluate the significance of cloud computing for
small medium enterprises.
1.3.2 Objectives:
 To develop a feasible study for SMEs.
 To ascertain the way in which SMEs can get advantages from the concept of cloud
computing.
 To identify the significance of cloud computing in data storage.
 To depict the disadvantages associated with cloud computing.
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 To determine different cloud service providers and recommend one that should be selected.
1.3.3 Research questions
In the present study, research questions have been framed so as to segregate the study in
different sections and to specify the major aspects that are related to the subject matter (Dinh, Lee,
Niyato and Wang, 2013).
 What is the concept of cloud computing?
 What are the benefits of cloud computing to SMEs?
 How cloud computing is significant in data storage?
 What are the demerits of cloud computing?
1.4 Framework and analysis
It is important for the research to carry out analysis and framework so that proper decision
can be made in order to conduct the research effectively and efficiently. With this respect, below
given are the different steps:
Research design: There are four different type of research design which are correlation, case
study, analytical, exploratory and descriptive. In order to conduct the research in effective manner,
descriptive research design is applied.
Research approach: These are of two types which are deductive and inductive. Inductive
research is selected as it enables to focus on the theories and other related models with respect to the
research topic.
Data collection: Primary and secondary are the two different type of collection method. In
order to gather primary data is collected through interview. On the other hand, secondary is
generated with the help of books, articles, etc.
Justification: With time there are many changes that has taken in place in respect to
technology. In this context, cloud computing is helpful enough to make sure that firm is able to
develop strong relationship with their customers. The research will enable to identify the benefits
that SME get through cloud computing.
Limitations: It is important that appropriate research methodologies to be used or else it
becomes limitation for the research. Further, there are different type of activities that are developed
and in order to complete them it requires to have proper financial support. When researcher lack
resources, then it becomes difficult to complete within speculated time.
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1.5 Gantt chart
Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12
Formulating research proposal
Identifying the literature
Designing aims and objectives
Conducting literature review
Collection of secondary data
Analyzing of secondary data
Developing research approach
Research methodology
Designing questionnaire
Conducting interviews
Collecting responses
Gathering data
Findings of the Draft
Data evaluation
Finalizing other chapters
Draft findings chapter
Submission deadline to tutor and
waiting for feedback
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Revising the final draft
Printing and binding
Submit to tutor
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CHAPTER 2 LITERATURE REVIEW
Literature review is one of the major sections of the research study in which researcher uses
different sources to specify the importance of cloud computing to small medium enterprises. The
entire section is segregated into three basic aspects such as concept and features of cloud
computing; use of cloud computing in SMEs and its different categories.
2.1 Concept of Cloud Computing
As per the view of Wang (2013), many companies uses the concept of cloud computing so
as to deliver diverse IT services to the clients with the help of internet services. Further, regarding
this author also added that cloud computing is essential for storing and recovering the information
for business purposes (Dinh, Lee, Niyato and Wang, 2013). The entire process is conducted with the
help of internet source and hard drive as well as any other device is not required to use in the
process. Cloud is regarded as a distinct IT environment that is designed for the purpose of
provisioning scalable IT resources. It is associated with internet based computing which shares
processed resources and data to computers and other devices on demand. Further, it also relies on
sharing of resources for the purpose of achieving coherence and economy of scale (Zissis and
Lekkas, 2012). Different computing services can be offered through the concept in a commoditized
manner and such amenities are somewhat concerned with the basic services. Hence, looking
forward this discussion, Lekkas (2012) contended that cloud computing is a basic utility which
organizations can use on regular basis to meet their computing requirements. Due to advancement
in technology, people have changed their perception regarding the concept of cloud computing. It is
thus called as a IT service provider which includes both hardware and software drives to deliver
computing services to the clients (Beloglazov, Abawajy and Buyya, 2012). Networking system used
in cloud computing is self serviced and it is independent of its own location and device.
As per Li and et.al., (2010) the cloud computing is considered as a wide ranging and quickly
advancing idea which helps SME's to understand regarding the concept of cloud computing so that
they can adopt effective approaches regarding using cloud computing services. In general, the basic
concept of cloud computing originates from different pre-existing concepts such as virtualisation,
grid computing and distributed computing. However, it is not relatively new area of study but it can
be differentiated as per the innovation of idea in order to deliver computing services to general
computer as utility. Velte and et.al., (2010) stated that as per the broad view of cloud computing it
can be stated that it helps in empowering expedient on demand system access to a shared pool of
configurable computing resources that helps in quickly provisioned and discharged administration
or interaction or service provider.
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2.1.1 Basic model of Cloud Computing
It assesses that a shift in the utilization and delivery of IT services is characterized as cloud
that enables the business to simplify the technological development and manage the process more
effectively. At the time of introducing cloud models it assesses that businesses supported different
IT related services in market and provides cost effective an flexible access to technology (Hsu, Ray
and Li-Hsieh, 2014). In regard to this, business owns information on demand at lowest expense that
enables them to work in an effective way. The basic model of cloud computing specifies the
simplest process of accessing application and storage with a common platform or main server.
However, such services are effectively shared among different business enterprises and retrieved by
service users (Bhardwaj, Jain and Jain, 2010). There are different service users of cloud computing
such as customers, workers, different member of business who are working on premise or general
public. Thus, cloud computing services can be utilized by any of the users at very minimal service
cost.
As per the view of Sunyaev and Schneider, (2013) cloud computing is stated as the
technology that helps in providing an opportunity for clients to control the resources of their
interest. Further, it also helps in allowing them to make changes and flexibilities in resource
consumption so that they can effectively manage the workload. Moreover, such resources can also
be stored by users for further use. It also helps in minimizing the business effort and time towards
marketing management and running the business functions smoothly towards innovation.
2.1.2 Characteristics ofCloud Computing
According to the opinion of Janssen and Joha, (2011) it is crucial for SMEs to assess the
basic features of cloud computing in order to implement its services and products in an efficient
way. Furthermore, cloud helps the users to expand its operational capacity through offering self
services entrances in different remote servers. National Institute of Standards and Technology
identifies certain crucial features of cloud computing such as-
 On demand Self service- It assesses that cloud computing provides self service portals to
its users in which end users can access basic IT services such as storage, server time without
any interaction of individuals.
 Rapid elasticity- IT resources provision and issue is elastic and can be accessed on demand.
However, the automated access is allowed to end users which involves certain parameters
that is fixed in system (Rittinghouse and Ransome, 2016). However, the resources
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provisioned to service users are unlimited in nature and thus exact capacity is available in
order to meet the needs of specific application.
 Resource pooling- Service providers merge with different IT resources that involves
memory\, storage, processing and network bandwidth. Thus, all these resources helps in
polling different computing resources in order to multiple customer base. Hence, all these
resources are separated and secured based on logical level in order to meet the dynamic
demand of different clients.
 Broad network access- End users can effectively access to the cloud computing resources
from main network or server. However, such resources are mainly retrieved by different
devices such as user mobile phones, tablet devices, workstations, laptops and computers.
 Measuring services- It stated that the resource use is automatically controlled and improved
through computing device and helps in utilizing a metering competence that is suitable to
different services such as bandwidth, processing, storage and dynamic user account.
However, asset utilization can be observed, controlled and stated by offering transparency
for both service users as well as providers (Wu and et.al. 2013). Such feature of cloud
computing helps in empowering a service user in order to expand the business in the form of
“pay as you develop” model or for inner IT divisions in order to give IT an effective
chargeback ability.
As per the opinion of Aleem and Ryan Sprott (2012) virtualisation is not the main
feature of cloud computing. It mainly focuses upon innovation in which technology is used as
service whenever needed. It is also crucial for service users to have adequate knowledge
regarding implementation and usage of particular cloud computing service that involves
infrastructure and internet requirements (Suciu and et.al., 2013). However, it also enables the
service users in regard to understand the different available services in cloud computing
market and how these services are used in regard to attain business objectives. Through
understanding such features regarding cloud computing it helps users to manage self service
portals.
2.2 Importance of Small and Medium Enterprises
Small and Medium sized businesses can be stated as organization that are carrying out its
services in diverse countries and industries in order to perceive SMEs differently as per their
business culture. It involves different criteria which is considered as an effective level of
investment, total assets, sales turnover and number of employees within firm. Features of SMEs
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