Introduction
Cloud computing has been described as one of the most innovative IT solutions that companies need to incorporate into their operations. Cloud computing is a network of computing systems hosted within virtual environments. Cloud computing enables an organisation to provide shared software, hardware and other electronic resources to its users.
This saves the company high costs that would have been used to procure and maintain complex and expensive IT systems. Computer files and applications are easily accessed by users through the internet. Employees working in remote locations are easily connected to the main workstation without having to be there physically.
Usage of Cloud Computing
An organisation needs innovative solutions to help it meet its short term and long term objectives. Cloud computing offers many benefits to an organisation. Cloud providers and services vary and it is important to select a model that suits the operations of an organisation. The service provider chosen must satisfy standard procedures necessary for the smooth running of the organisation.
Cloud computing ensures that an organisation uses its scarce resources more efficiently. IT based functions which enable an organisation to run are hosted on a cloud computing system. This ensures that users in the organisation have access to vital information and data from any location through the internet.
The organisation can benefit by achieving positive outcomes in its operations. The defining attribute of this system is that an organisation does not need to install expensive software systems nor pay high licence fees. The service provider covers all costs associated with applications used in running IT based functions in the organisation (Beheshti, 2011, p. 122).
Figure 1. Operations supported by cloud computing systems. Source Courtney, C. 2012.
Infrastructure
An effective cloud system is one that provides a platform on which configurations, provisions and transactions by servers operate. This system distributes various computing functions and combines services offered to respond to performance needs in the organisation. It delivers an extensive virtual IT system through which all operations of an organisation are performed.
As such, hardware and software operate in environments which encourage flexibility. This is made possible through servers which are interconnected with other computers which users rely on to perform their duties (Beheshti, 2011, p. 124).
Hybrid Cloud
A hybrid cloud that has the ability to integrate functions for both external and internal users is suitable for a large organisation’s operations. General low risk applications can be operated on a public cloud. These operations include PR, sales enquiries and employee work schedules.
High risk functions that need a lot of confidentiality should be operated on a private cloud. These functions include payrolls, legal issues, user identities, usernames, passwords, contracts and all financial records. A hybrid cloud separates the functions an organisation performs according to the risk involved which guarantees a higher level of security (Beheshti, 2011, p. 124).
Cloud Services
The services that are offered by a cloud computing system include:
Desktops hosted on a cloud service eliminate the need for PC’s in the office. These desktops allow users to access regular desktop PC services from remote locations through the internet.
Emails are hosted on virtual systems which minimise the need for an organisation to spend on internal email hosts. Companies store email on virtual servers which guarantee faster and more efficient access to their users.
A cloud system stores all files which reduces the cost of managing and maintaining them internally. Users are able to access stored files through the internet which is convenient for an organisation.
Servers which are flexible and scalable allow organisations to regulate the quantity of speed and space they need. Organisations can alter their virtual server functions to suit their constantly changing needs and functions (Beheshti, 2011, p. 126).
Benefits
An organisation reduces the costs incurred in managing and maintaining expensive IT hardware and systems. It is able to adopt a lean operational model because it pays only for services it needs and when it needs them. Scalability is one of the main benefits offered by a cloud service. A firm is able to access a lot of resources without unnecessary limitations. This allows the organisation to experience positive growth.
A firm that uses cloud systems understands market changes and consumers’ needs better. A firm can change its products, operations and strategies to be in line with the changing needs of its customers.
It offers different types of users a shared platform which serves their needs effectively. Firms are able to customise their products and operations to suit their end users thereby making them more satisfied.
A firm is able to streamline its internal and external procedures more effectively. Cloud computing encourages workers to work with less supervision which leads to positive work outcomes (Mahmood & Hill, 2011, p. 210).
Service Providers
VMware offers hybrid cloud services which are suitable for both internal and external processes that an organisation undertakes. The company offers integrated cloud solutions that target both low risk and high risk operations in a firm.
Amazon has a variety of cloud service offerings. The Amazon Elastic Compute Cloud offers more flexibility and efficiency to a company. The service encourages an organisation to expand the space it needs and customise the cloud operations to satisfy its core functions.
HP offers various cloud related services in the market. The HP Enterprise Business offers all the necessary IT support services depending on the nature and size of the organisation.
The Lenovo Cloud offers many services to business enterprises depending on their storage needs. The cloud has large storage efficiency and email support. An organisation is able to customise its cloud to be in line with its internal processes and procedures (Mahmood & Hill, 2011, p. 211-214).
Security Issues
Various security issues need to be considered in cloud computing. These issues are:
Careless or malicious users can compromise the security of information, data and applications contained in a cloud system.
Some vendors could be practicing without being certified by relevant authorities. Vendors who operate without proper legal recognition may not guarantee the required level of safety on information stored in their cloud systems.
The location of data can be a big security issue. A service provider may fail to protect the location of data stored in the cloud and this may end up causing security breaches in a firm (Van der Molen, 2010, p. 76).
Some cloud systems have poor recovery capabilities in case of any problem that leads to the loss or destruction of valuable information. They lack proper backup systems which aid the retrieval of lost information and data.
Some cloud service providers cannot be relied upon by their clients for a long period. If a company dissolves or becomes bankrupt, a service provider may fail to provide files and data to its client stored in its cloud system.
Mitigations
People that have privileged access to important data must be vetted to ensure they have strong moral and technical abilities. There should be strict guidelines on how users perform various functions in remote locations.
A firm should audit service providers before any relationship is established. A firm needs to ensure that the service provider has complied with the set standards and conditions in the industry.
Data needs to be classified according to its importance to the firm. The provider needs to encrypt all data to prevent any unauthorised intrusion that compromises security.
There should be adequate backup systems that enable retrieval and recovery of lost data in case a disaster occurs. A firm needs to know the time its service provider can take to recover lost or destroyed data during a disaster.
A firm should establish the long term reliability of a service provider. It should insist on openness and should carry out routine checks on the cloud system to find out its safety standards (Van der Molen, 2010, p. 79-81).
Figure 2. Table showing security issues and their mitigations.
Implementation
Cloud computing as discussed above offers many benefits to an organisation. The organisation needs to prepare its workers and other users of its IT systems before changes are effected. There is a need for employees to be trained on how to perform IT supported functions from remote locations through a cloud system.
The organisation needs to assess functions that are to be performed through a cloud system. The likely impact of the system on operational costs and work outcomes also needs to be assessed. The organisation should only consider service providers who are certified with a positive track record of achievement and success (Van der Molen, 2010, p. 84).
Cloud computing services chosen should be compatible with a firm’s internal IT infrastructure. This will ensure that there is a concurrence between the functions performed by the firm’s internal IT departments and those performed by the cloud. A firm needs to ensure that its employees are adequately prepared to work under reduced supervision to justify the shift to a cloud computing system.
A firm needs to be able to scale its activities in the cloud system depending on the functions its users need to perform. Cloud computing helps a firm to improve its performance in the market by focusing only on the important aspects of its operations (Van der Molen, 2010, p. 87).
Summary
A firm which uses this innovative technology is likely to get positive rewards in future. An organisation needs to ensure that the service providers it chooses meet its expectations. A firm can benefit from reduced capital costs and improved efficiency in its operations. However, the element of risk should not be underestimated. Organisations need to reduce their vulnerabilities to risks caused by poor IT security. Cloud computing helps a firm to meet its long term and short term market objectives.
References
Beheshti, S.A. (2011). Business process on-demand; Studying the enterprise cloud computing and its role in green IT. Berlin: Grin- Verlag.
Mahmood, Z. & Hill, R. (2011). Cloud computing for enterprise architectures. Hoboken, NJ: Wiley.
Van der Molen, F. (2010). Get ready for cloud computing. New York, NY: Cengage Learning.