Cloud Computing and Information Systems in Business - Research Paper Example

Cloud Computing “…By bundling the processing power of thousands of computer servers, a company, for example, could allow two employees from different countries who speak different languages to communicate directly by phone, using voice recognition software to process what is being said and translation programs to interpret it into another language. The result, ideally, would be a seamless conversation, without struggle and without the limitations of speaking a foreign language….”[Obr10] Charles Babbage – a Professor of Mathematics, like his predecessor Isaac Newton at the Cambridge University has been a genius [Cop08]. In the first half of the nineteenth century, Babbage designed a Difference Engine - the first computing machine that was meant to produce mathematical tables such as logarithmic tables, tide tables etc. Charles Babbage went on to propose another machine called Analytical Engine that is termed as the mechanical digital computer – the field of computing was born and since then this field has witnessed evolution at enormous rate. Landmark evolutions in the field of computing those have lead to the present day computing have been Analog computing, Digital Computing, Distributed Computing, Grid Computing, Utility Computing, Ubiquitous Computing and Cloud Computing. Cloud Computing is a term that has gained popularity within last couple of years. Figure 1 shows the trends in the usage various computing terms, the figure is indicative of the fact that the terms like grid computing and distributed computing are dropping in usage where as from 2008 onwards the term cloud computing has picked up at an exponential rate. Cloud computing has been defined as “….a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS)….”[Sea11]. The term Cloud is a metaphor of Internet as Internet it is represented as a cloud in schematics and diagrams Figure 1. Trends of usage of term Cloud Computing. Cloud computing has numerous benefits and these beneficiaries not only include the users but also the companies. Cloud computing is beginning to change the way businesses are done. The following are the key benefits of cloud computing: Cloud Computing enables the users to access information (files and data) remotely, that is from their home or office, during working hours or even beyond working hours.Cloud computing is relatively cheaper with respect to the resources, for smaller companies and companies in resource limited settings cloud computing provides low cost solutions because these users need not procure expensive software and hardware. The companies just need to pay for the services and infrastructure when it is required, thereby reducing the costs. Since cloud computing is all about online or virtual resources, resources like storage space etc.for the companies into cloud-based services is limitless. Monthly subscription fee takes care of the growing needs of the companies.In other words, cloud computing offers such advantages capable of posting the companies, those adopt cloud computing, in all together a different league because the scales and economics are a class apart. Figure 2. Pros and Cons of Cloud Computing (Source: http://blogs.zdnet.com/Hinchcliffe) Although cloud computing presents numerous benefits,quite like any other entity or technology, cloud computing has its share of shortcomings. These include concerns like the additional costs for transfer of data; lack of control over security, reliability of the hardware where the data and applications reside, because the hardware and software etc. are owned by third party; since cloud computing is a service oriented technology, quality of service of each vendor can vary, hence this technology can not be considered to be free from qualitative aspects like, security issues, etc. Figure 2 gives an idea of the pros and cons of cloud computing, pictorially. In 2010, cloud computing represented 7.5% of the entire UK’s software market (UK Sterling 8 billion) and it was estimated that by 2012 the cloud-based services would double [BBC10]. Experts have posited that cloud computing will change the complexion of the IT industry and business. Just because the modalities of doing business will get cheaper, the creative brains will now be able to get more innovative, the products and services those were not feasible earlier for some limitations (financial or technical etc.) will now be possible. Cloud computing will thus lead to better business, by way of enabling companies to make better prototypes at lesser costs and in lesser time. The slow adopters (of new technologies) amongst business organisations will face the risk of loosing strategic and business importance. The existing IT giants may have to strive hard to maintain their leading positions because cloud computing is expected to bring a paradigm shift in the processes and means of doing IT business. It can be said that IT landscape is all set to experience a shift because of cloud computing. Experts say that cloud computing is having a strong impact on IT business organisations, because of cloud computing the business are moving towards the service oriented modality of doing business and the services will be available anytime, anywhere[Arm09]. Owing to the advantages that the cloud computing offers, the business those are geographically dispersed, will function as seamless businesses for their employees, internal processes pertaining to correspondence, planning, collaborations will get simplified. Interfaces for all the employees of the same business organization across the world will be the same – thus leading to standardized and uniform looks and feel of the organization for all the employees at all locations. Real-time data will be available at every location, this availability will enable the branches to enhance their returns and retain their customers as cloud computing holds a special advantage for effective and efficient Customer Relationship Management (CRM). Cloud computing addresses another important issue of recurring costs of IT infrastructure with respect to the up-gradation as well as up-scaling of the IT resources. Scalability would never be an issue for small business organisations. Smaller business organisations will be able to compete at global level. Cloud computing is all set to redefine not only the way business is done but will also impact the IT workforce by redefining IT skill sets of the professionals. Once the IT skill sets are impacted this will lead to the rewrite the titles of the manpower associated with cloud computing, the newer titles could be like: “Cloud Architect, Cloud Service Manager, Cloud Integration Expert, Executive President of Cloud Technologies..”[Kus11]. It may be needless to mention that cloud computing has the potential to touch everybody’s lives and is all set to enhance not only the way business is done but also will enhance the quality of life of the entire populace of the planet. The impact of cloud computing will be even more in the resource limited settings and developing countries. Bibliography O'brien, K J. Technology. 2010 йил 19-September. 2011 30-April . Copeland, B J. The Stanford Encyclopedia of Philosophy. Ed. E N Zalta. 2008. 2011 30 April . Search Cloud Computing. Cloud Computing. 30 April 2011 . BBC. Cloud computing to double by 2012. 26 April 2010. 30 April 2011 . Armburst, M, et al. Above the Clouds: A Berkeley View of Cloud Computing. Technical Report . University of California. Berkeley: University of California, 2009. Read More