Cloud computing is well defined model ensuring easy on the demand access to networks for the purpose of sharing of resources and computational systems with minimum use of management and interactions needed from a service provider. Availability of computational resources using cloud computing has transformed the way organizations worked. Twenty four hours access, retrieval and storage of impotent resources and data helps in keeping local storage mediums and drives free of memory space being locked up (NIST, 2010). Cloud computing solutions are providing numerous advantages to organizations all over the world. At the same time over concentration of power and resources brings many disadvantages along as well. Following are the advantages of cloud computing systems in business organizations.
Scalable factor – As per use and requirement cloud computing can either be scaled up or downsized. As a result of this flexibility whenever there is a need to improve efficiency of the resources it can be expanded and whenever resources are idle it can be reduced scale wise. So, for organizations which have bandwidth fluctuations, these are the ideal solutions (Charalampous, 2016). Cloud computing scalable flexibility gives organizations competitive advantage from their competitors.
Saves finances- It is perhaps the most crucial and noteworthy benefit of cloud computing solutions implementations. Irrespective of the type and size of a business, it aims in only one thing and that is to earn maximized profits at the bare minimum expenditures. In house storage related costs can be eliminated in this process thus reducing operational expenditures to the bare minimum (Temitope, 2001). Hence IT related costs can be saved and only what is used is paid for in this method.
Recovery – Business enterprises needs to have a robust recovery system for ensuring safety of their data and resources (Wyld, 2009). Cloud computing offers effective recovery systems and backup solutions which not only save up time but also help recovery in times of disaster.
Reliable Platform – The cloud based platform is much more reliable that infrastructures provided previously by in house IT departments. Every service associated with this offers a twenty four hours and 365 days service guarantee (Sla – zone, 2007). Also, in case of a failure of any server the resources are shifted to a safer server autonomously by the system.
Operational advantages- Migrating business operations to cloud based systems has a huge pool of operational benefits associated with it. These are the day to day activities of the business such as the flexibility to access resources from any location using any platform, getting work done right on time due to fast accessibility of business resources and effective collaboration possible as many users can access the system at the same time. Moreover there are no maintenance costs or efforts required for cloud based computing systems (Rittinghouse and Ransome, 2010). The IT staff which was previously engaged in activities such as data management and backups can now be utilized in better things. The cloud computing solution is a self service approach in which employees can reach out to the resources they need to perform right on their own.
Eco friendly-Energy consumption is reduced in cloud computing and hence it can be termed as an eco-friendly way of work (Mutch, 2015). The need of hardware components is less and the energy used to run the extensive quantity of hardware is also less. The infrastructure of the cloud is singular and highly efficient and hence overall energy consumption is much lesser than conventional methods.
Market time reduction-For companies which are manufacturing a product to be offered to consumers the term market time is the gap or the time involved in marketing the product after it is completed (Macquarie Telecom, 2009). Conventional use of operations kept the market time at the higher end always. But since when companies shifted to cloud computing the time needed for procurement, installing, maintaining or updating went down to a considerable scale. Hence, products can be marketed at much faster time with cloud based computational procedures.
Autonomous software updates- Cloud computing is a process where the location of the server is not in the office premises. The services or the infrastructure of cloud computing services takes care of the servers and automatically makes operations such as software updates whenever necessary. These also ensure updating of security software used to protect the resources from unwanted access by unauthorized personnel. Hence, one does not need to worry about micromanaging these small business activities. The entire concern is someone else’s.
Efficient Management –Management capabilities of cloud based computational solutions are much more efficient and simplified as compared with conventional management techniques and capabilities (Mishra, 2015). Everything is centralized in this system. Starting from resource administration, management of vendor infrastructure everything related to updating and backups etc are highly simplified processes.
Competitive strategy –Migrating to cloud based systems is also a strategic move made by organizations to attain competitive advantages. The requirement of IT practically becomes nil. Applications based on mission can be delivered with no upfront costs associated with it and no time spent on provisioning and delivery. The primary focus shifts towards business objectives and processes rather than worrying about technology in cloud computing.
Improved Collaboration – For business organizations which allows users to use resources from remote or for organizations based in different countries cloud computing solutions helps enhance collaborative work. Authorized personnel can simply use their respective account details and access data resources and applications based on the cloud. Hence, the team can access, edit as well as share documents and data right from any location thus improving speed of work and efficiency. Through such a collaborative approach in real time applications and data can be updated. So, when this common platform is used everyone is sure to use same updated files.
Work to be done from anywhere- The only thing that one needs to get work done in a cloud based business system is the internet connection. Some of the professional cloud services offer professional mobile apps and hence accessing them is possible wherever there is a net connectivity present (Gens, 2008). The outcome of this flexibility is that business operations can be made possible anytime one wants. There are no bottlenecks or hurdles in this.
Secured- Every business enterprise which stores data and resources on their business computer systems in local systems are at the risk of data loss. Data loss can prove to be fatal and a lot of time goes retrieving data. Sometimes data loss can even be forever and non traceable affair. Security provided by cloud service is always secured as it is at a place where there is no hardware associated which can cause a data loss.
Achieve technological leadership – Local systems are more prone to age as soon as it is procured. Every five years local systems need a complete replacement. Cloud computing services are updated frequently on its own (R & Technologies. (2014). Hence the business organization is always at the technical forefront. Over years the company soon achieves technological leadership by leveraging the highly updated technology in the day to day operations of the firm.
Just like every technological trend, even cloud computing has its own shortcomings in numerous situations. A lot of research and room for improvements are still left to be made in this regard. Some of the very opportunities provided by the system is at times hurdles in disguise which needs careful observation and understanding. Though marketed as the biggest trend in IT it has certain issues. Following are the disadvantages associated with cloud computing systems.
Security-Data which is stored in the cloud by various business organizations are sensitive data and hence security issues always exist. In spite of the fact that cloud computing systems provide the best secured solutions yet these are resources which can change the destiny of an organization’s. Still the very fact that data is stored in an eternal network opens up the possibilities of risks. Using cloud computing signifies giving access to external service provider to access data. Hence on a daily basis security is the biggest concern in this service system (Viswanathan, 2017). Choosing of the service provider here plays a crucial role as this third party service provider will be having all sensitive information about the organization.
Loss of data-Being open to a system where data and resources are stored outside in an external network also increases risks of data loss. Data being infected with viruses, bugs or external attacks can cause huge loss of data. Such data loss can cause a disastrous situation for users of cloud based systems. Such loss cannot just be calculated in terms of money.
Compatibility issues-Legal systems are at times becoming on obstruction while cloud services are getting integrated into the IT system which is an integral part of a business organization (Lynch, 2016). Migrating from cloud based system to in house IT systems can cause various compatibility issues and risks.
Downtime –Numerous business organizations are using cloud based systems to make their operations more flexible. The cloud service provider everyday takes care of a number of clients. Hence, at times the technological outages can be overwhelming. The processes of business can be suspended temporarily. Moreover, if the entire internet connectivity is offline in nature then no data or application can be accessed on these offline methods.
Licensing issues-Cloud platforms and the various software used in it has licensing needs associated with it (Schouten, 2017). Such licensing can be complex and many times they can also be extinct. Many issues can evolve in this regard. All such factors can lead to a slowed down or halt of business operations and systems.
Lock in situation by vendors-Cloud computing systems is considered to be immensely flexible by the service providers. However, the entire system is yet to be evolved completely. So, migrating to cloud based services from one vendor to another is a locked I situation for many. There can be support issues which can arise when business enterprises migrates from one vendor to another service.
Control limitations-The entire infrastructure of a cloud system is owned by service provides, managed and monitored by them. Hence, the control of operations is minimal for the customer. Customer can manage the applications and use all the data and services permitted them to be used and managed (Shagin, 2012). But, the backend infrastructure has never been controlled by the customer. Hence such limited control can cause various drawbacks.
Technical problems –Data in a cloud based system can be accessed anywhere at any time. But technical problems and dysfunctions can become a big issue. Technology always is prone to such technical issues and outages. In Spite of keeping the entire system highly maintained the best cloud service provider can also have technical problems. Network and connectivity issues can sometimes make work stuck.
Cloud Vendors Losing Business- The field of cloud computing is a fast transforming field. There are high potentials that every now and then a new service provider is emerging claiming to provide the best cloud computing services. If one is using this service for a one time project then it is not a problem. However when business enterprise uses this for their entire database systems then vendors losing business and new ones emerging can be a tedious task.
Hybrid System difficulty –This risk is specifically for those enterprises which have sensitive information. Government organizations and financial institutions for an example never use cloud computing services in spite of its efficiency and flexibility. They depend only on their in-house IT facilities (Linthicum, 2016). Currently still there are no industrial standardization where a common system can be applied for a cloud based organization. Developing a hybrid system where in house hardware and IT systems can be tweaked and made in sync with cloud based systems is a very challenging task.
References
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