Cloud computing

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Cloud computing is a way to access computing resources that are stored on a network from anywhere in the world [1]. Cloud refers to the computer network that people cannot see physically. This network is consisted of massive servers, computers and can even include individual PCs. Furthermore, cloud computing can refer to people or business who use the cloud to manage, store and implement data. Businesses are able to pay at a low cost to access the computing resources including software, hardware and services (upgrades and maintenances for the hardware and software). Therefore, the cloud computing allows businesses to share and access the resources on the cloud rather than local servers [2].

What is the Cloud

Contents

History of Cloud Computing

In 1960s

Computer scientist John McCarthy proposed that computing should be delivered to the public as a utility in 1961. Later, American computer scientist Joseph Carl Robnett Licklider came up with the idea of “the intergalactic computer network.” His idea suggested that everyone should be able to access programs and data from anywhere they wants[3]. This idea of “intergalactic computer network” resembles cloud computing today.

In 1970s -1990s

With the development of ARPANet, some leading technology organizations (Apples, Oracle, Microsoft & etc) are formed and even started sharing computing capabilities with other organizations[4]. In 1997, the first Information System professor Ramnath Chellapa used “cloud computing” in his lecture. This was the first time the term “cloud computing” was used in academic field.

Since 2000

The popularity of cloud computing started growing rapidly with web 2.0 and other technologies, a lot of companies start to charge from hardware to cloud services[5].

Different Service Models

Cloud computing services are delivered to users through three different service models, namely software as a service[SaaS], platform as a service[PaaS], and infrastructure as a service[IaaS]. These three service models are tathers towards different users and provides various functions to satisfy users’ unique needs.

Four Service Models

Software as a Service [SaaS]

Software as a service is the model where applications are located on the cloud while the user experiences are delivered via the internet. The cloud vendors are in charge of the platform and infrastructure which includes applications, data, runtime, middleware, OS, virtualization, servers, storage and networking[6]. Google Apps is an example of SaaS where users can log into their accounts and access to applications online to complete specific task. For example, sending email to a friend through Gmail.

Platform as a Service [PaaS]

Platform as a service is the model where cloud vendors provide facilities and hosting capabilities to cloud users. Cloud users use this platform to build and deliver web applications and services through the internet[7]. In this model, the cloud vendors are in charge of the platform and infrastructure which includes runtime, middleware, OS, virtualization, servers, storage and networking; while cloud users will in charge of the applications and data[8]. Windows Azure is an example of PaaS where users can use Windows Azure platform to develop applications on Windows servers and manage their own data and applications.

Infrastructure as a Service [IaaS]

Infrastructure as a service is the model where cloud vendors provide and manage physical underlying cloud infrastructure to cloud users. Cloud users control the infrastructure to deploy applications and services through the internet[9]. In this model, the cloud vendors will in charge of platform and infrastructure which includes virtualization, servers, storage and networking [10]. Amazon Web Services is an example of IaaS where Amazon Web Services will hold the websites and applications for its users. Therefore, Amazon Web Services users can maximize its capacity for its own websites’ traffic.

Different Development Models

There are four different development models for cloud vendors to base their services on. Users can also subscribe to different models based on their own needs.

Private Cloud

The cloud is owned by an organization that has exclusive use to the service. The cloud can be either managed internally or by a third party [11]. Private cloud makes the owner of the cloud has more control over the cloud and data. And it also gives the owner the ability to customize their own clouds. However, the private cloud generally has relative high costs compare to other types of clouds. And it requires the owner to maintain the cloud [12].

Community Cloud

The cloud is shared by several organizations since these organizations share the same mission or goals. The cloud can be either hosted internally by these organizations or by a third party [13]. It shares the similar advantages and disadvantages with private clouds.

Public Cloud

The cloud is hosted by cloud vendors in order to provide cloud services to the general public through internet [14]. Public cloud is easy to access and reduce costs and time for companies to develop the cloud. However, since the cloud is owned by the cloud service vendor, the users has less control over the cloud [15].

Hybrid Cloud

Hybird Cloud

The cloud is combined by two or more models (private, community or public) [16]. It allow users to access public cloud for non-sensitive information while still remain privacy and security controls over the private or community cloud side [17].

Hybrid cloud allows users to access public clouds easily and cost efficiently. And at the same time, it also allows users to have private side to keep and operate sensitive information and data on the private cloud side [18].



Characteristics of Cloud Computing

Cloud Computing has five essential characteristics which are on-demand self-services, ubiquitous network access, location independent resource pooling, rapid elasticity and pay per use [19].

  1. On-demand self-service: Cloud users are able to control and manage their own computing resources [20].
  2. Ubiquitous network access:Cloud users are allowed to access cloud services through various devices at anywhere through internet or private network [21]
  3. Location independent resource pooling: Cloud providers will use various model according to consumers’ demand to provide different physical and virtual resources. Cloud users are not able to know the location of resources that been provided [22].
  4. Rapid elasticity: Cloud users have the ability to change capacities of cloud service at any time. Cloud services can be scaled larger or smaller upon cloud users’ requests [23].
  5. Pay per use: Cloud users are billed according to their usage of resources [24].

Cloud Computing Pricing

One of the key determinants for organizations to adopt a new technology is pricing, and cloud computing is no exception. Transitioning from tradition storage and software to cloud services could create considerable sunk costs for companies. Thus, it is vital for companies to know how much it will cost them to use cloud. The main determinants for these costs are the price the vendor charges for their service.

To determine how much they will charge for their services, cloud vendors will first compute how much it costs them to set up their service. These costs can range from capital expenditures to ongoing costs. Capital costs include facility acquisition, power infrastructure, server network, license and installation. Ongoing costs include payroll, maintenance, and legal fees.

There are factors that affect the pricing of cloud services. One of the key factors that can determine pricing is the type of service provided. The three types of cloud service provide are servers, storage, and applications. After the type of service is determined, pricing structures can be based on several factors such as storage space needed, monthly user traffic, and CPU usage (Cloudtweaks, 2012).

The two main models for cloud computing services are the elastic pricing or pay as you go model and the fixed pricing model.

The elastic pricing model charges users based on the amount of consumption of the service. Organizations, especially smaller businesses prefer this model because it gives the flexibility to manage their costs and only pay what they use (Cloudtweaks, 2012). Usage can be determined by the amount of RAM, storage, servers and users. Vendors often provide usage calculators on their websites for companies to estimate or determine the amount it will cost to use the service.

On the other hand, the fixed pricing model is more traditional and organizations simply subscribe to a monthly or annual payment plan. These plans often indicate exactly how much RAM, storage or users the service can accommodate. The benefit of using the fixed pricing model is that it allows company to budget their costs and forecast future budgets.

Cloud Computing Advantages

Cloud Computing has transformed business processes and the relationships between buyers and suppliers. The advantages of cloud computing can be grouped into six categories: utility, scalability, accessibility, cost, collaboration, and security.

Utility

The term utility describes the ease of acquiring cloud services. Taking software for an example, SaaS model allow users to access software immediately through internet by any devices at anywhere if the user has the access permission. Whereas the traditional packaged software installation process required software to be installed on every client computer before usage. This will allow businesses to save considerable amount of time from installing and updating software for each computer. Furthermore, the ease of acquiring cloud services also gives companies the luxury of accessing the services on-demand. This provides advantages to businesses in a dynamic business environment due to quick and easy on-demand access to business tools through cloud.

Scalibility

The ease of acquisition of cloud services combined with the pay as you use model gives businesses the flexibility to manage their cloud storage and software usage. This advantage is extremely beneficial for businesses to better adapt cloud services to fit their current business needs and market conditions. For example, corporations who are downsizing can easily decrease the amount of cloud services in order to cut down costs. Whereas all the traditional software in the corporation will all become sunk costs once they no longer have users.

Accessibility

One of the greatest impacts cloud computing has on organizations is its increased accessibility. Cloud computing provides multi-device support, making its services available for mobile devices, tablets and other platforms that delivered through internet. This provides business professionals more timely access to important files or information because they do not have to be at the office to use cloud services.

Cost

Due to its utility, cloud computing is considerably cheaper than many traditional software. Businesses are able to save money from having to install the software on all their devices and cut costs from having their IT departments maintain the system. The pay as you use model also provides business the opportunity to manage their budget on software and storage usage and gives them the flexibility to cut costs or increase usage when it is needed.

Security

Security has been one of the most debated issues with regards to cloud computing. Aside from the risks associated with online security breaches, cloud computing does provide a more secure storage option for some businesses. Businesses who lack up-to-date secure data storages can switch to cloud for better protection of their data. Loss of data can be detrimental to businesses and can be caused by factors such as hacking, natural disasters, and theft. Many cloud services are reinforced through multiple servers and automatic backup. This insures businesses that their data is in the right place and helps these businesses mitigate all the risks associated with data.

Collaboration

Companies using cloud computing are able to collaborate better with their employees and clients. Cloud computing increases interdepartmental collaboration and communication because individuals can easily access co-worker’s files and provide their feedback. Furthermore, because employees can see exactly what information is being generated in real time, this will decrease duplicate information. Companies can also collaborate better with their clients by giving their clients some access to the files that relate to the business transaction. This will provide transparency for the client and also give the client the ability to track if everything is on the right track.

Disadvantages of Cloud Computing

Despite all the positive impacts cloud computing can have on businesses, there are still potential risks to this technology. These risks can be divided into security, data-transfers, flexibility, latency, understanding, and integration.

Security

Security still remains a top risks for businesses considering to move into the cloud. This is especially true for organizations with large amounts of important data or organizations that possess sensitive information (Robert. 2013). Social networking giants such as Facebook and Twitter who possess enormous amount of user information require extremely secure servers and software information protection. Any server downtime and security breach could lead to loss or stolen data. Not will these companies suffer tremendous losses from lawsuits, they will also suffer brand damages from losing the trust of their users. This also stands true for smaller service companies such as law firms, where client information must be securely stored. Since security is such an important issue in business, many organizations believe that having their data or information online is more risky than the traditional storage method. This is caused by the fear of online hackers and the wide accessibility of the web. Companies can mitigate this risk by finding a cloud provider with multiple backup servers and reinforced security protocols.

Data Transfers

Whenever a company moves their data from storage to another, the loss of data during the transfer is always an issue. The same holds true when companies decide to move their data from hardware storage to the cloud. Not only are data-transfers susceptible to data loss, this process can also be very time consuming (Roberts, 2013). To mitigate this risk, companies can choose to move their data onto a portable storage first and physically deliver it to the datacenter for uploading (Roberts, 2013). Another option is for companies to upgrade their internet connection which will facilitate the data-transfer process.

Flexibility

Due to the fact that cloud computing is still fairly new (Robert, 2013); many cloud services do not have the flexibility to change according to the business environment. Companies can suffer from data losses during upgrades or have undesirable upgrades on their systems. Another major issue is the risk of suffering from data lock-in. This occurs when the organization cannot move their data out of the system. This can be either caused by the lack of control over the data or the data transfer procedures set out by the vendor does not allow the transfer. Companies need to make sure that their service level agreement (SLA) clearly indicates the procedure of transferring data and what data belongs to which party.

Latency

Like all of the server based technologies, latency has always been an issue. Latency is the time that server takes to respond to client computer (Robert, 2013). Latency problem occurs when the system does not perform at the desirable quality or the system shuts down due to server failure. The causes of latency include spikes in user traffic, proximity to data center and weak internet connection. Latency can pose major problems to organizations because if one important business process is slowed down, it might create a chain reaction that affects all the other processes. To prevent latency, businesses need to plan out how much capacity they need the server to handle.

Understanding

Many organizations still do not understand the implications of cloud computing, especially when the service is handled by a third party (Robert, 2013). Many companies still do not understand the ownership of data so it is important to make sure maintain strong SLA agreements so organizations do have control over most of their data. The lack of understanding and transparency of cloud services could also put companies in a vendor lock-in. The best solution to mitigate this risk is to have a data mitigation strategy to prevent vendors who withhold important data (Department of Broadband, 2013).

Integration

Although multi-device support is one of the key advantages of cloud computing, some cloud services do not support other devices. Thus it is important for companies to make sure the service does support the devices they will be using on before using the service. Furthermore, some of the company’s existing resources might not be able to integrate with the cloud service. This can include printers, emails, and portable devices (Robert, 2013). This might create challenging for companies whose devices do not support cloud, and will require them to put in additional efforts to make changes.

Cloud Computing in Business Functions

Marketing

Pinterest is an online SaaS that allows businesses to create and manage image themed “pinboards”. Each image is called a pin. Users can browse through different pin boards and re-pin images on their own boards. Pinterest also allows integration of its service with the company’s own website. This enables users to pin images from the company’s website directly to their own pinboards.

Pinterest provides a unique user experience where users are able to enjoy browsing images boards on their interests instead of reading long reports. Thus, pinboards often attract more customers than traditional social networking sites. Furthermore marketers are able to get their message through faster because images communicate more effectively about the brand and what the businesses have to offer.

In addition, Pinterest has advanced features for businesses such as rich pins that can automatically update all information related to the pin. They also have web analytics that gives businesses the tools to track the number of re-pins and what kind of viewers the businesses’ current pinboards are attracting.


Having the initial boards set up on Pinterest will cost businesses a one-time fee of $200-1500 depending on the number of advanced features it require, such as analytics. However, there are other costs that might be associated with marketing using Pinterest. The administration fee of Pinterest which includes managing pinboards and followers will cost $300-1000 a month marketing companies that help businesses create more effective promotions using Pinterest tend to charge a one-time fee of $200-$1500 (Norwood, 2013).

Whole Foods was able to Pinterest to levitate their brand and values very effectively. Currently they are managing over 50 thousand followers and using 970 pins to promote their products (Cruz, 2013).

Social networking is playing a vital role in today’s marketing. Hootsuite Dashboard is a SaaS that manages all of a business’ social networks. Some of the networks that can be integrated into the system include Facebook, Twitter, Linkedin, Google+ and etc. Marketers are able to post their message to multiple social networks at once, saving them considerable time. They can also keep a better track of the activities of all their networks instead of checking each one separately.

Hootsuite is currently free to use for its basic features. They also offer a pro version for $9.99 per month for every 2 users. Additional users cost $10 per month. The pro package includes enhanced analytics, reports, ads opt out and others. On top of all that, Hootsuite added features that range from $10-50 a month. For example, users can pay $50 for analytics from Google Analytics and Facebook Insights that enable users to create more advanced reports (Benefits of Hootsuite Pro, 2013).

Whistler Blackcomb uses Hootsuite to manage over 9 different social networks to promote their campaigns and promotions (Cruz, 2013).

Accounting and Finance

Netsuite is a company that provides a variety of SaaS products such as ERP, CRM and ecommerce. Netsuite’s ERP system has many features that can benefit accounting and finance professionals. These features include financial management, inventory management, and financial analytics and reporting. Netsuite highlights the fact that because their services are cloud based, companies who use Netsuite’s products are able to make better decisions due to on-demand access. Furthermore, Netsuite mentions that their products are accountable because they provide high traceability. This means they make efforts to keep track of all of the company’s data produced by their systems to mitigate the risks of data loss.

Netsuite provides different software service packages for business of different sizes. Small business packages range around $99 a month per user; $49 for additional users. Its advanced ERP and Ecommerce software costs $399 a month per user; $99 for additional users. The rest of Netsuite’s financial and inventory management software all cost around $200 a month per user (Netsuite Exposed-Products and Pricing, 2013).

Taulia is a similar company to Netsuite as they also provide management and inventory related SaaS. However, Taulia’s software focuses mainly on buyer and supplier relationships. The system can be integrated with existing SAP ERP through modules. These modules allow the company to better track their payment invoices, purchase orders and purchase history. Taulia’s software also allows the suppliers access to the buyer’s invoices, this way suppliers no longer have to call to check the status of the invoices.

By better manage their invoices and supply chain, companies can take advantage of supplier discounts or dynamic discounting. Dynamic discounting are discounts given to buyers by suppliers for paying on time or early. This practice gives buyers the incentives to pay early and enjoy discounts that cover up some of their payment expenditures. Furthermore, this investment is often risk free and creates better relationship with the suppliers. For suppliers, dynamic discounting allows them to better forecast their cash flows reduce the ambiguity in upcoming payments. Additionally, suppliers are able to reduce the cost of AR financing options.(ICG Consulting, 2013). Taulia charges its customers $500-1000 a month (Dreamsimplicity.com, 2013).

Human Resources

There are also many cloud computing companies that provide SaaS for human resource professionals. CATS is a recruitment and applicant tracking software that facilitates the hiring process. This software allows recruiters to post their job openings to various job boards and allows recruiters to collect resumes. Recruiters no longer have to spend hours searching job boards and posting available positions. CATS also provide an applicant customizable screening questionnaire that will automatically rate applicants based on their answers.

Furthermore, one of the most useful functions of this software is its customizable workflow. This function allows recruiters to manage the entire hiring process of all their candidates. It provides activity updates of each hiring process and triggers to indicate what needs to be done to move onto the next task. This workflow saves recruiters considerable time to keep track of all their activities. CATS has a fixed monthly pricing of $69 a month per recruiter or hiring manager (Catsone.com, 2013).

Emportant is a company that provides businesses of all sizes with all kinds of HR related SaaS. The software features include leave management, payroll and attendance, compensation and self-service. Emportant helps HR professionals to keep better track of their employee performance to make employee appraisal easier. The other functions also decreases the amount of workload involved in documentation.

One of the key features of Emportant is its employee self-service. Employees are able to access their attendance and performance indicators so they can better manage their work effort and behavior.

Emportant provides four different pricing packages for companies of various sizes. Its Freedom package with basic features is free and can accommodate 25 employees. The Starter package can accommodate 25-200 employees. It has a $19,000 upfront installation cost and a $2400 monthly charge. It provides best HR practices and automates certain HR processes. Emportant’s Advanced package accommodates 200-1000 employees. It has an installation cost of $34,000 and monthly charge of $4500 per month. The Enterprise edition can accommodate more than 1000 employees. Its installation costs $49,000 and has monthly charges of $9000 per month. Advanced package provides additional complex workflow management and attendance tracking. The Enterprise edition includes all of Emportant’s most advanced features such as online employee training administration and performance management (Emportant.com, 2013).


Case Study: 1-888-JUNK-VAN

Introduction to 1-888-JUNK-VAN

1-888-JUNK-VAN was founded in 2008 by Marcus King, who saw a business opportunity in the junk-removal industry and started up a household waste collection business in London, Ontario. As an entrepreneur understanding the challenges for a small start-up, he was motivated to create a business model that aims for low overhead costs in order to stay competitive in the market. They had no physical office to avoid paying rent and utility bills (employees work remotely) and communicated solely through emails. As the business expanded in 2009, 1-888-JUNK-VAN faced several issues that required for them to find a new IT strategy to create a system that can keep up with the operational needs of the company. This case study will discuss the current issues 1-888-JUNK-VAN is facing and the approach to choose a new IT strategy [25].

Difficulties and Challenges faced by 1-888-JUNK-VAN

In 2008, Kingo invested $500 for a truck to start his business in London, Ontario and made a revenue of $300,000. In 2009, 1-888-JUNK-VAN had 5 trucks now expanding to Kitchener and Hamilton which raised $600,000 of revenue. Kingo’s plan is to expand its business by opening franchise into new cities. However, the simple model of electronic communication and information technology could no longer keep up with the expansion of the business [26].

Issues in Current Business Process

The main issues for 1-800-JUNK-VAN include, inefficient system given that there are too many data and each data formats had different format which created inconsistency when inserting, retrieving, or updating data; Data are being transmitted through email in multiple formats; and there is a large amount of inefficient manual work.

For example, Drivers took a lot of time on administration tasks such as collecting payments which affected the Data Clerks who receive data from the Drivers. The data collected did not follow any format, so it was time consuming for the Data Clerk to understand the data. Furthermore, the Data Clerks accidentally send wrong versions of the database to Morning Operator, which makes the previously booked jobs no longer available. Since this job is not recorded on the Driver’s spreadsheets, they would not perform the jobs.

These issues leads to unsatisfied customers, damage on company’s reputation, and revenue loss.

Requirements for 1-888-JUNK VAN’s New IT System

In order to satisfy Kingo’s future plan to expand the business into different System must improve the current operational efficiency to increase the ability to handle more customers, and facilitate expansion to maintain the level of quality for their service.

The following requirements were chosen to satisfy Kingo’s plans:

  • Have remote access to the database (eg. phone, PC, tablets)
  • Able to transmit information through the information system (omitting email)
  • Easy for a non-tech savy person to implement
  • Fast implementation time
  • Would still work when the business expands further
  • Inexpensive

Options for Best Solution

To satisfy 1-888-JUNK-VAN’s solution, several cloud services options are considered for the best solution:

  1. Microsoft Access Database – A database management system that helps you store information for reference, reporting, and analysis. It can help you manage large amounts of information in Microsoft Excel or other spreadsheet applications [27].
  2. Custom Application - Software programs that are developed by the company that is tailored to their service. This can be in the form of Software as a Service (SaaS), Platform as a Service (PaaS), or Infrastructure as a Service (IaaS) depending on the company’s needs.
  3. Google Docs – A Software as a Service (SaaS) solution in the form of a free app where you can create different kinds of online documents, work remotely from smart phones and PCs , and store them in your Google Drive online [28].
  4. Platform as a Service - A cloud computing platform where you can rent hardware, operating systems, storage and network capacity over the Internet. The service offerings facilitates your application which eliminates the process of managing the hardware and software yourself [29].
  5. Enterprise Resource Planning (ERP) System - A Software as a Service (SaaS) tool in the form of a business management software that allows that integrates applications to manage the different aspect in your business [30].


Comparison of Available Cloud Services Options:


IT Solution
Pros Cons

Microsoft Access Database
Cost:
• Licenses at $179/computer
      o Microsoft Access 2013

Estimated time:
• 1-2 weeks to input data into Access database

• Short time taken

• Low cost

• Easy implementation

• Not flexible and robust

• Does not enable for a central database

• Not remotely accessible because it does not have a central database
   o Extra time may be incurred to train the employees

Custom Application

Cost:
• $2,000 to start
• Maintenance Costs of $60/hr/developer(estimate)

Estimated time:
• Initial build up time of 4 weeks

• Remotely accessible
• Expensive

• Inflexible and not robust
    o To get an end product that Kingo has in mind may result in extra time and costs incurred, and possibly not even getting the system Kingo had in mind for Junk Van

Google Docs

Cost:
• Free for up to 10 users
• For small businesses, fee of $50/user/year [31]

Estimated time:
• Approximately 2 weeks to input data

• Low costs
• Short Implementation
• Remotely accessible
   o Easy to use
• Not flexible and robust (large amounts of data will be saved on one document > may result in lags/errors)
• Hosted on a public cloud computing platform > Negative implications on the security of customer information/data

PaaS

Cost:
• Approximately from $300 to $600/month depending on storage space, number of user licenses and applications, etc.
• Customization charged extra on an hourly basis at about $180

Estimated time:
§ About 3 days to implement and input data into the system

• Easy implementation
• Flexible
• Remotely accessible
• Short implementation period
   o No lock-in period
• Expensive

ERP

Cost:
• Company with approximately 20-25 users cost $2,500/user/year
• Implementation cost $1 for each software licenses
• Business One starting pack includes four licenses priced at $12,000 [32]


Estimated time:
• Uncertain

• Remotely accessible

• Able to generate reports

• Expensive

• Not Flexible
   o Too many unnecessary features at the moment

1-888-JUNK-VAN`s Actual Choice of the IT Solution

Kingo's final choice is a Platform as a Service IT system known as TrackVia. Features include:

  1. Integrated business features such as email are sent automatically
  2. Allows customers who are less tech-savvy to create their own custom apps
  3. Implemented in a short period of time
  4. Very Secure Platform
  5. Supports business needs of a company that is growing
  6. Relatively low price [33]

TrackVia satisfies most of 1-888-JUNK-VAN’s requirements and is a suitable IT system for Kingo to implement in his business. It costs $249/month with $25/month each for additional users [34]. As a result, this service allowed 1-888-JUNK-VAN to not rely on emails anymore, improved process efficiency, data accuracy, and execution confidence.

Takeaways

A company that just started-up would face various constraints that hinder them to achieve their goal. In order to keep up with the operations, adopting an information system that is specifically tailored toward your business can help the company have competitive advantage as well as staying cost effective. It allows you to be more flexible when your business expands in the future. Therefore, small to midsize businesses need to consider both their specific needs and constraints in order to choose their cloud services wisely, whether it is a Service (SaaS), Platform as a Service (PaaS), or Infrastructure as a Service (IaaS). Identifying different IT solutions can help give you a rough estimate of the cost of implementing the new system as each service is tailored to a specific case.

The Future of Cloud Computing

When an up-to-date innovation comes out, people are unlikely to accept it right away. Based on Roger’s bell curve, people are in the early majority stage of cloud computing technology [35]. Organizations continue to evolve cloud computing and take tentative steps to optimize their business processes. They keep track of their business process model to coordinate the execution into cloud management. The cloud is considered as a primary, permanent, and sustainable technology that will make substantial contributions to enterprise computing infrastructure by 2020. Experts forecast the global cloud market will increase from 35 billion in 2011 to over 150 billion by 2020 [36]. There will be a huge increase in the demand for cloud from global companies as well as the development of support clouds. The following are three ways in which the cloud will be radically different in the future than it is today.

Rise of the Cloud-Based Networked Enterprise

Cloud-based virtual marketplaces will provide a brand-new operating model for standardized companies to transform into fully networked enterprises. Such networked enterprises will generate new marketing opportunities by engaging strategic partners, suppliers, and customers in an open, transparent, and user-friendly cloud based network environment. Previously, cloud computing was considered a high-end service that was only available to global enterprises for commercial uses [37]. Now, however, the speed of innovation has changed the way people think and brought the cloud to end-users. The cloud can achieve maximum economic scales and monitor business projects by controlling budgets and planning completion time cycles, thereby improving business execution and streamline processes at every level. However, fraud poses a threat to online transactions including payments, logins, and registrations in future cloud-based networked enterprises. Therefore, networked businesses should provide a cost-effective solution to ensure transactions are completed in a swift, reliable, and consistent way. By doing this, cloud-based enterprises can offer greater customer services and evolve their demands to cater to virtual market needs.

The “Glocal” Cloud

In 2013, organizations have been gaining valuable insight into the potential that the Glocal Cloud can provide, as they need to think and act globally while serving their partners, customers, and employees locally. The “Glocal” Cloud refers to the union of the international cloud with the local cloud and aims to enhance localized business demands and overall management efficiency by taking privilege cloud computing’s benefits to the international level. Cloud vendors can use remote machines to provide global services without requiring services from excess software, hardware, and IT experts [38]. By doing this, global enterprises can address business concerns and expand into new markets with minimal potential risks; therefore, companies can quickly launch several business projects in the short run. According to Gartner’s research, organizations invest over $200 billion into the global cloud and will continue increasing expenditure by 2016 [39]. Companies are more comfortable with “Glocal” cloud benefits and the associated risks that cloud brings. Currently, the top cloud-related challenges facing businesses and IT leaders have evolved from concerns about performance and acknowledge to future implementation. As a result, organizations make efforts to expand usage and gain experience by focusing on implementation, and operational and governance challenges. However, by accepting the “Glocal Cloud” it will not take a long time before regulators start to enforce new principles that have a significant impact on the use of clouds in enterprises worldwide.

Datacenters Become Ecosystems

Cloud datacenters automate the provisioning of infrastructure and applications by trading software resources with companies and creating databases for customers. Cloud datacenters should combine abstracted software and commodified hardware to provide unified platforms that optimize entire database ecosystems and support all workloads [40]. As it can overcome IT difficulties and meet companies’ needs by delivering new social media, real-time applications of data volumes will grow by more than 50 percent per year in the future. Cloud datacenters will launch patching and updating equipment automatically to deliver virtualization for computing and memory. In addition, the next generation of cloud centers will help corporates turn time, distance, and geography into opportunities so that they can trade without constraints.

http://www.youtube.com/watch?v=gpzM6Mask80 http://www.youtube.com/watch?v=bu3kIAZAKTs

Reference

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