Introduction
Technology is completely changing the face of the earth. New inventions are being introduced in the society, which makes work much easier. Four factors have always motivated the work of scientists. The first factor that scientists have always been struggling to find a solution is time. Time is very important in the current society.
Every second counts, and people are struggling to find the best way in which they can manage time. Scientists are therefore concerned with coming up with machines that would help in the management of time.
The second factor is comfort. According to Menken (2008, p. 124), as technology advances, a human being becomes lazier. Individuals in the current society like comfort in every single activity they do. They prefer machines that would help them work with the least effort.
The third factor is space. The population of the world is becoming larger with every passing minute. The level of literary is also increasing. This means that more people are being hired in various offices in various firms. This reduces the space available. As firms grow, the numbers of potential customers increase.
Therefore, there would be need for increased space. Every additional space is important however little it may be. The scientists have the responsibility of coming with strategies that would ensure that the little space is fully utilized. The last factor has been security.
There is need to ensure that the world becomes safe. Scientists work tirelessly to come up with technologies that would enhance the safety of human beings. These are the challenges that a typical firm faces in its operations.
Virtualization technologies therefore came at the right time. It came when it was needed most not only by large corporations, but also by individuals. Companies require systems that would ensure security of their data in this increasingly competitive market environment.
They need a system that would be fast in entering, saving, transferring and retrieving data (Shroff 2010, p. 78). These firms also need a system that would enhance comfort and reduce space in the office. The system should also allow data sharing in the relevant departments. All these factors play a major role in enhancing this technology.
Various technological firms currently offer various solutions in this field. VMware is one of the leading technological institutions that have come out strongly in the market. One of the most popular solutions that this firm offers is cloud computing.
This technology has become very popular because of the space it consumes. This technology can allow firms to store large data without acquiring the physical hardware. This has a number of economic benefits.
One of the customers of VMware, Abacus International Pte Ltd, narrates how the technology has helped it. The application of cloud computing has helped it in becoming efficient in the market hence very competitive.
Advantages and Disadvantages of Moving To a Virtual Environment/ Cloud
According to Vagadia (2012, p. 45), the business society is moving to the virtual world and this cannot be avoided. Technology is moving very fast. The above four factors have made the physical environment a little too clumsy, especially when it concerns data management.
Space for keeping large files is scarce. These firms must come up with virtual technology where space, speed, and efficiency will not be an issue. The virtual technology comes with both advantages and disadvantages, as discussed below.
Advantages
Virtualization comes with a number of advantages. It is one of the most current technological inventions in the field of technology. One of the main advantages of this technology is the reduced number of hardware it requires. This technology would integrate all the servers to be operated using a single computer.
This has threefold effect. The first benefit of this integration is that the space used by the system is reduced. The other benefit is that the cost of fuel and hardware is reduced. A single computer would use lesser power than when a firm has five of them running.
Moreover, the firm would only spend funds on buying a single computer and its maintenance would be cheap. The third benefit of this technology is that it enhances the process of sharing data. Various departments would find it easy to share data without the challenge of using the internet.
The workforce that this firm would require for the management of the data and maintenance of the hardware will be reduced (Shroff 2010, p. 78). This would reduce the cost of operation in the firm. The above benefits are clearly elaborated in the case study below on Abacus. This technology transformed the operations of this firm completely. The firm became more efficient in its operations, hence more profitable.
Disadvantages
This technology comes with various advantages, as discussed above. However, any firm that is planning to implement it should not ignore some disadvantages. Understanding the disadvantages is very crucial as it enables the implementing team in determining whether it would be ready to withstand the risks associated with the project.
It has high risks when there is a failure of the physical hardware supporting the whole system. It is a big advantage when large data from various servers can be supported by a physical hardware. This impact would bring the whole system to a standstill and this may affect the operations of the firm. This would cost the firm because it would delay service delivery.
The system is very complicated. Virtualization process is very challenging to people who lack knowledge of VMware. It would require the firm to hire employees who have a deep understanding of this software for the process to be successful. Finding such technocrats may not be easy. The limited number of such workforce in the labor market makes it very expensive.
One of the biggest challenge that is associated with cloud computing is security. Security of data is one of the leading concerns as firms use the emerging technologies. However, the process of storing data in a ‘cloud’ puts the firm in a very dangerous position.
The system provider may compromise the system and access customer’s data. If such data reaches a competitor, it would be very easy for the competitor to come up with counter strategies that would make it edge out the company from the market. There are cases where an individual would hack into the system and tamper with the information of the firm.
When such occurrences take place, it becomes very easy for the firm to fall despite its financial strength. Some application may not support this technology.
There are cases where the system would act in a different manner without giving clues. This is very dangerous as the result may be loss of data. Although the firm in this case study has not been directly affected by this, the threat cannot be ignored as it may strike any minute.
The Economic Benefits Achieved through Application of Cloud Computing
A Case Study of Virtualization at Abacus International Pet Ltd.
Case Study: Abacus International Pte Ltd Cuts its Server Costs by Implementing VMware Software.
Abacus is a large firm that operates globally. This firm was started in 1988 and has its headquarters in Singapore. The firm operates in tours and travel industry. It enables travel agencies to book airlines to various destinations online (Abacus International Pte Ltd, 2005, p. 1).
The parent firm, Abacus International Pte Ltd, started this firm to help it operate in an industry that was getting increasingly competitive. The parent firm wanted to manage local competition that had been complicated by the entry of new airlines.
Moreover, other large airline firms dominated the industry. It had to select a niche and devise ways through which it could protect this market. It was therefore necessary to start another firm that would increase the competitiveness of the firm by focusing on a market segment.
This firm was very successful, and Abacus International Pte Ltd (2005, p. 2) reports, it was granted semi-autonomous operations in 1990. However, the management of this firm came to understand that the number of customers who visited the facility looking for their services were customers of other airlines.
There were travel agencies that needed their services in order to book other airlines such as British Airways. At first, the firm turned down their request. However, the level of inquiry increased.
It became clear to this firm that it could no longer ignore this market. After consulting with its parent firm, Abacus expanded its operations. This included assisting customers in booking any other airline that the customer would prefer.
This industry is very lucrative. However, it is very competitive. Various other firms in this industry have come out with strong strategies on how to remain competitive in the market. One of the most important factors that would determine competitiveness of a firm in this industry is communication.
Information flow is very important in this sector. For a firm to be competitive in this industry, it would be expected to communicate with its customers effectively and pass this information to the desired airlines. The industry heavily relies on repeat purchases.
Most of the customers are regular travelers who go around the world as tourists (Abacus 2012, p. 3). It would therefore be prudent to offer them maximum satisfaction in order to convince them to make regular purchases. Abacus was having problems with its communication and data storage system. There were cases where customer requests were not appropriately followed due to technical hitches.
The management of this firm decided to use VMware to help enhance its communication and data storage system. The management integrated its servers and hired a technocrat who would ensure that the system runs normally. The result of this move was massively successful.
The expenses on energy were reduced because the number of hardware was reduced. The management also reduced the number of employees in this department because work was made much easier.
The biggest impact of this technology was its efficiency in handling customer needs. The communication process was improved. It could easily communicate with customers, code communication appropriately, and pass the coded message to the respective airlines that the customer preferred.
The airline would give a confirmation that the booking process was complete. The firm would then reach back to the customer with all the relevant information about his or her purchase. According to Abacus (2012, p. 2), this saw the firm increase its customer base by over twenty percent in the larger Asia region. The revenues were also increased because the number of workforce required was reduced.
This has seen this firm succeed even during recession. Currently, this firm is one of the largest companies in this industry in Asia. This system has increased its efficiency. For instance, the report by Abacus International Pte Ltd (2005, p. 3) states that the system saves 40 man-hours per day. The report further demonstrates how other areas of this field have been improved, including a reduction of migration by 50 percent.
It can be hypothesized this system is reducing the costs of operation by about 60 percent, given the figures given by the report. The figure below shows a hypothesized data of how the costs at the firm have been reduced. The cost benefits for this firm are illustrated in the comparative calculation below.
These benefits do not cover the increased revenues caused by the increased customer base. They are based on the cost of production.
Table 1: Cost of Production before and After Implementing VMware
Source: Hypothesized data for this research
The above data can best be represented in a graph. It is very clear from the graph that the cost of production has been reduced by over sixty percent. This is an increased efficiency.
The bar graph below clearly shows that Abacus reduced its costs of operations by over sixty percent following the implementation of this technology. It clearly demonstrates that this technology is beneficial to firms, especially in the current world where technology has redefined the way of life.
Graph: Cost of Production before and After Implementing VMware
Source: Derived from the above data
How Virtualization or Cloud Technologies Has Helped Businesses
The biggest concern for firms in the industry is continuity. The ability of the firm to withstand forces in the external environment is always very important. Profitability of the firm must be based on sustainability. Emerging technologies have resulted to big success for some firms, just as they have pushed some out of the market.
Based on how the management of a firm responds to the emerging technologies, the result can be either positive or negative for the firm. Virtualization technology is one of the best ways through which a firm can remain sustainable in the market. The above case about Abacus clearly demonstrates this. Three main factors are important in ensuring business continuity.
The factors are reduced cost of operation, strong base of loyal customers, and the ability to put to check market competition. These are some of the factors that virtualization has improved. The discussion above clearly demonstrates that virtualization is one of the best ways through which a firm can cut down on its costs of operation.
This would increase its profitability in the market making it stronger enough to withstand forces of competition in the market. The case study above also shows that this technology improves the quality of service that a firm offers to its customers.
Abacus was able to offer its customers quality experience after implementing virtualization technologies. This would automatically lead to increased satisfaction of the customer, which is a key factor in developing a base of loyal customers.
With the loyal customers and increased profitability, it would be easy for a firm to put market competition into check. It would be able to monitor the actions of its competitors and come up with the best response strategies. These factors would maintain continuity (Huss 2010, p. 41)
The Four-Phased Methodology Designed To Create a Range of Virtual Infrastructure Solutions
The process of implementing a range of virtual infrastructure must take a very clear process for it to be successful. A four-faced methodology structure would be appropriate in ensuring that the process is implemented without any hitches. Abacus considered it a wise move to implement technology that was new in the industry.
The management followed the four-phased technology in this implementation, and the result was a big success (Clark 2005, p 85).The first step in this strategy would be initiation. At this stage, the concerned parties would bring the idea of implementing virtual technologies in the firm.
They will have to explain to all stakeholders the need for this technology in the firm. The biggest role would be to create the need for the project in the entire firm. The management plays a big role in this stage. The second stage would be planning. This task would involve the management and all the implementing parties within the firm.
Not all projects involving virtual technologies have succeeded. A number of projects have failed because of inadequate planning. All officers must come up with a proper plan that would help the firm succeed in this project. The management must have a clear understanding of the present situation of the firm, and the desired destination. The desired destination must be defined by the current capacity of the firm.
This is because the present forces that would dictate the future of the firm. The planning must therefore, be based on the current financial strength of the firm, and its workforce. The third stage would be execution of the project. All planned strategies would be put in place to ensure that the project achieves its mission.
It would involve integration of serves and installation of the necessary hardware and software in the system. The management of the firm must ensure that all officers of are present so that they understand how this system should work.
The management must also work closely, at this stage, with the production and marketing department to ensure that the system is working to their advantage. The two departments are very important because they are directly involved in ensuring that customers get superior value from the products. The last stage would be inspection and maintenance of the system.
Technocrats would have to conduct regular inspection to ensure that the system is running with the least problems. Good maintenance of the system starts with a deep understanding of the system.
All the staff members must have a deep understanding of the system. They should know how to operate the system in a way that would increase its duration. This way, cases of mechanical damage would be eliminated.
Evaluation of Hybrid cloud solutions Cross Platform Technologies
In the current business environment, a firm must be smart in dealing with its data. Hybrid cloud solution is one of the best strategies that a firm can consider implementing. In this strategy, a firm would make use of both private and public clouds. These two types of cloud technology would help the firm reduce the cost of managing data while still maintaining secrecy of its strategies.
In this approach, a firm would collaborate with a provider of public cloud. The firm would determine which information to store in the public cloud, and which to store in a private cloud. It is always preferred that the firm stores all its sensitive data in the private cloud. All data relating to strategies that the firm is using in the market, and data relating to customers of the firm, should be kept in the private cloud (Hiles 2011, p. 67).
Through this, the firm would prevent competitors or any other enemy from accessing sensitive information of the firm. General information of the firm that does not have serious implications if revealed to the public should be kept in the public cloud. Cross-platform technologies would be important to enhance the compatibility of the software and make the system more users friendly.
Conclusion
Virtualization technologies are the future of data management in organizations. Emerging technologies are changing the approach taken in the business society. These new technological inventions are redefining the way business organizations should approach strategic plans for their organizations. It is evident from the above discussion that these technologies cannot be ignored.
Firms must come to appreciate the fact that the world is being transformed. Some concerns such as comfort, security, speed, and efficiency are some of the defining factors behind the emerging technologies. It would require a firm to understand these forces in order to manage market competition. Virtualization offers a firm with an opportunity to integrate the servers hence eliminating the need for several servers in the firm.
This is important in ensuring that the organization’s data is centralized, and easily accessed by any member of the organization from any department. Information is crucial to the prosperity of a firm in the current competitive market.
Management of data within the organization through this technology would not only enhance the process, but also reduce the cost. The case study above shows that this technology has the capacity to reduce the costs of operation that is related to data management by over sixty percent. It is important to embrace the emerging technologies. It is only through this that a firm may ensure continuity in the market.
List of References
Abacus International Pte Ltd, 2005, Abacus International Cuts Server Costs as First Singapore-Based Firm to Implement VMware Virtual Infrastructure Software, News Release, VMware, Inc. Palo Alto. Abacus, Abacus international poised to help airlines and agencies capitalize on china market opening, News Release, Abacus, Palo Alto.
Clark, T 2005, Storage virtualization: technologies for simplifying data storage and management, Addison-Wesley, Upper Saddle River.
Hiles, A 2011, The definitive handbook of business continuity management, John Wiley & Sons, Chichester.
Huss, M 2010, Disaster Recovery Professional Business Continuity, Course Technology Ptr, New York.
Menken, I 2008, A complete guide on virtualization, Emereo Pty, Melbourne.
Shroff, G 2010, Enterprise cloud computing: technology, architecture, and applications, Cambridge University Press, Cambridge.
Vagadia, B 2012, Strategic outsourcing: the alchemy to business transformation in a globally converged world, Springer, Berlin.