Next Generation Is for the Cloud - Case Study Example

Cloud Computing In the current world, technology is one of the most important aspects in any field, may it be in business or other areas. Technologies that have evolved in various fields particularly Information Technology (IT) are of great importance in helping existing industries or firms in expanding, improving and transforming them, while also creating new industries. That is, organizations in all sectors are integrating IT in every aspect of their functioning. For example, from opening a simple door to aiding in the accomplishment of advanced operations, technology is becoming an omnipresent entity in many of the organizations. It is well known that emerging technologies can bring in newer market opportunities, with improved data and information storing, sharing and communication. Among them, the emerging Informational technological concept of Cloud Computing brings in many benefits to the organizations, and thus has great potential for future applications. So, if this emerging technology is taken advantage of, it would benefit the companies by helping to address the business needs of the client, thereby encouraging its business growth through good profits and lowered costs. Both big organizations as well as smaller firms are adopting this technology to fulfill their own needs. So, this paper will look at the technology behind this concept and how it could impact the organizations, which utilizes it. Description of the technology Cloud computing is an Internet-based computer network with the main role for ‘outside’ or ‘virtual’ servers, without the need to establish and maintain in-house infrastructure. The data, softwares, applications, etc stored in those servers can be accessed by computer users from anywhere through a web browser by paying subscription charges, based on the ‘services on demand’ concept. “The storing and accessing of applications and computer data often through a Web browser rather than running installed software on your personal computer or office server”. (cloudcomputingdefined.com).The fundamental concept behind Cloud Computing got originated in 1960s, when the American computer and cognitive scientist John McCarthy opined that “computation may someday be organized as a public utility”. (Frangulyan). This rings true because the main characteristics of Cloud Computing is computing in a public or external environment. This characteristic was further explored in comparison with the electricity industry by Douglas Parkhill in his book, "The Challenge of the Computer Utility", published in 1966. The Cloud architecture for the delivery of Cloud Computing involves multiple cloud components including various hardwares and softwares. These components of the computing architecture are divided into two categories, the front end and the back end. The front end as seen and operated by the client or computer user includes the computer and the other applications to access and reach the ‘Cloud’ through a user interface like web browser. On the ‘other end’, the ‘Cloud’ itself is the back end of the Cloud’s architecture, with the installation and operation of various hardwares like computers, servers, data storage devices and softwares in the form of licensed softwares, specialized business applications, etc. Among the items that are hosted by Cloud hosts or providers (often with extra charges for high-memory or high-CPU instances) are data transfer in and out; storage (measured by the GB-month); I/O requests; PUT requests and GET requests; IP addresses, load balancing, plus various softwares or applications. (patriotnetworkservices.com). Speaking about softwares, the cloud software services are referred to as "Software as a Service (SaaS)". This concept delivers the required software as a service through the web browser, without the need to install and run that particular software in the client’s own computer or computers, thereby eliminating the need to buy the software and also simplifying the maintenance and the support for those softwares. The other feature of Cloud Computing is the incorporation of ‘Elasticity’ features. That is, with this feature, the client at the front end can increase their usage or consumption of the facilities in the ‘Cloud’. When there is a need for higher storage or high data transfer at particular times, the client can scale up their demand and fully utilize the resources in the ‘Cloud’, then reverting back to lower usage in other times, only by paying apt subscription charges. “Elasticity, as its name implies, when applied to an application describes the ability to easily and seamlessly scale up (add more resources in order to increase the overall processing power when needed) and scale down (being able to switch off some of those resources when the load on the overall system goes down and the system is over-provisioned). (Moyne, 2009). The other advantage of this elasticity in Cloud Computing architecture is its ability to maintain the Service Level Agreements (SLA) of the clients, even if there are extreme variable load conditions as well as faults in hardware and software. This way, the computer user or client will be able to aptly access or utilize the services in the ‘Cloud’, without any disturbances when there is overloading due to other factors. In spite of offering wide variety of services, the expected quality standards or Quality of Service (QoS) are maintained, fulfilling the customers’ expectations and importantly fulfilling the service level agreements (SLAs) with them. Thus, it is clear that Clouds are single point access to various computing needs of the user or client. The concept of Cloud Computing is growing at an optimal rate, with many large as well as small entities hosting ‘Clouds’ and providing various cloud-based services. The major cloud hosting and service providing companies are Salesforce, search giant Google as well as Amazon, who is one of the pioneers of this technological concept. In addition, major IT firms like Microsoft, IBM and Hewlett-Packard are also actively involved in Cloud Computing activities and services. Business impact When an organization adopts this Cloud Computing as part of its functioning, it can achieve many benefits, even while facing some ‘correctable’ threats, as the case will be in any emerging technology. When one focuses on the benefits, it is manifold and can positively impact the organizations’ functioning and success. The first main benefit to the firms is that they don’t need to establish a physical infrastructure for its IT related purposes including all the above mentioned features like servers, data storage devices, licensed softwares, etc. By renting the facilities in the ‘Cloud’ for nominal subscription rates, they can lower the organizational or operational costs as well as future investments maximally. Apart from lowering installation costs, they can also eliminate costs that may be needed for the maintenance of those in-house infrastructures, including the costs to recruit and train apt personnel for the maintenance. Thus, the main purpose of Cloud computing is to save money by optimizing the resources utilization. Optimization of resource utilization is the key because idling hardware and software (licenses) costs would result in high expenses for the organizations. However, in the case of Cloud Computing, as the organizations need to pay only when they utilize or how much they utilize, there will not be any ‘idle’ costs. The other benefit is, the organizations can terminate the contract with the Cloud service providers at any time without any major financial losses, and thereby avoid problems like return on investment risk, which is normally associated with the established of in-house infrastructure. When one focuses just on the storage aspect of ‘Cloud’, it is clear there are many advantages to the organizations. Organizations will normally have higher volumes of data in various forms, and they want to save all those data for current as well as future processes or uses. Because of this scenario, there will be the need to save both newer as well as the older data. “With a phenomenal growth in data quantities, companies are under pressure to store and protect not only new data, but older existing data that is kept ‘just-in-case’ to protect against any future difficulties.” (minttwist.wordpress.com). If they have only minimal storage options or if they don’t want to spend finances on additional storage devices, Cloud Computing provides a cost-effective solution, with its high volume and wide array of storage options. The storage options in the ‘Cloud’ will enable the organizations to store all their precious data securely and safely, for future applications. The other main feature of Cloud Computing is SaaS, as it gives the organization access to many specialized and costly softwares and other applications. “With the continued advances in technology and ever changing needs of organisations, cloud services ensure that the most up-to-date software is available to companies.” (minttwist.wordpress.com). Sizable numbers of softwares are licensed and are very expensive. So, buying it will put a big hole on the organization’s financial coffers and more importantly, installing it and maintaining it will also lead to further costs, as personnel will be needed for that purpose. Cloud Computing on the other hand, hosts and provides all those softwares on demand basis at a nominal price. Importantly, the maintenance and the support for those softwares are provided by the providers themselves, thus providing only good service to the organizations. The other feature of Cloud Computing, ‘elasticity’ will aid the organizations to optimally use its computers as well as software, particularly on the basis of needs. As discussed above, when there is need for higher storage or usage, the elasticity will allow the addition and removal of servers, computers, storage devices, softwares, etc. “This means that clouds provide the elasticity of the hardware and of the platform, and can even fire up another instance of your application.” (Moyne, 2009). With organizations using the IT options in their premises mainly for quick responses without any disturbances, this elasticity concept of Cloud Computing will aid a lot. With only computer and other internet applications needed at the ‘front end’ for the user to access the ‘Cloud’, Cloud Computing is easily accessible by authorized users anywhere. In these current times, where employees are always on the move as part of their job needs, organizations through Cloud Computing can provide safe and secure access to the needed resources, and aid the employees to accomplish their tasks. In addition, sizable organizations are encouraging ‘work-at-home’ or ‘non-office’ mode of working, and in this scenario also Cloud Computing can play an effective role. This can be best exemplified by the collaboration between New York City authorities and Microsoft regarding cloud services. “In the case of New York particularly, this benefit is exemplified by the fact that many of the city’s workers are not office-based and so will have improved access to services with resulting improvements in communication between agencies.” (minttwist.wordpress.com). The other important feature of Cloud Computing is that, it provides all the above discussed services and options in a secure way. Although, there are doubts regarding its security validity with chances of hacking and loss of crucial data, effective and foolproof steps are taken by the hosting companies to prevent any problems. “The main concerns about Cloud Computing are security and privacy as data inside the ‘cloud’ is outside a company’s firewall and that brings with it an intrinsic threat of risk…. companies need to implement stringent security measures such as proven cryptographic methods to authenticate users.” (minttwist.wordpress.com). In addition, there will be heightened security because of the centralization of data. That is, with all the data focused in a particular place without being spread out in various locations, the providers can fully focus and strengthen that particular place. Conclusions From the above analysis of Cloud Computing as a technology and its impact on business processes or organizational functioning, it is clear that it can have quite a positive and optimal impact. From doing away the need to install IT infrastructures and reducing costs to providing wide range of softwares, extensive storage options, optimized and flexible performance, Cloud Computing can aid the organizations to accentuate its productivity, meet the client’s expectations and at the same time increase its profits. Although, organizations from all sectors and in all sizes are adopting Cloud Computing according to their needs, Small and medium enterprises (SMEs) are adopting more. As it is a cost-effective option, SME favor more. With Cloud Computing as a concept and technology evolving with the entry of many technological tools, it can make a positive impact in many organizations, irrespective of their sizes but respective of their needs. Works Cited cloudcomputingdefined.com. Definition: Cloud Computing. 25 October 2010. http://www.cloudcomputingdefined.com/ Frangulyan, Kristina. Next Generation Is for the Cloud? 25 October 2010. http://www.searchenginejournal.com/next-generation-is-for-the-cloud/13539/ minttwist.wordpress.com. Is Cloud Computing the future of web design? 25 October 2010. 25 October 2010. http://minttwist.wordpress.com/2010/10/25/is-cloud-computing-the-future-of-web-design/ Moyne, Jean-Noel. (2009). The key to Elasticity, and why you need it. 14 September 2009. 25 October 2010. http://www.tibcommunity.com/blogs/activespaces/2009/09/14/the-key-to-elasticity-and-why-you-need-it patriotnetworkservices.com. Cloud computing. 25 October 2010. http://patriotnetworkservices.com/Cloud%20Services.htm Read More