Engineering Research Paper

                     Cloud Computing for Increased Business Value

                                      Author:Abdulaziz Aljabre

                                      International Journal of Business and Social Science  

                                     Vol. 3 No. 1; January 2012

Abstract

In today’s business world with the amount of economic downturn and loss happening every day, the need for reliable, yet affordable technology is needed more than ever; cloud computing fills that void. Cloud computing offers its customers reliable service at flexible prices that do not break the bank. However, as good and innovative as cloud computing may be, it does not necessarily mean that cloud computing is good for all businesses. By researching the cloud computing services available, this paper explores the benefits, as well as the drawbacks of cloud computing within the business realm. By using Amazon’s cloud computing services as a model, this paper determines which types of businesses would most benefit from using cloud computing as part of their everyday operations. The author finds that in most situations small businesses reap the most benefits of cloud computing. Finally, looking to the future of cloud computing, the author comments on the role that cloud computing can play in businesses in the future.

1.    Introduction

Nowadays, companies continue to grow larger and larger, not only in the number of employees, but in the number of departments and type of employees. In cases such as these, cloud computing is a resource that is readily available to help companies meet their needs and accomplish their goals. Especially in small businesses, cloud computing is an excellent technological tool that can benefit the business. All businesses need to respond to competition by making better use of Internet services and offering more incentives than their competitors. Cloud computing can help business shift their focus to developing good business applications that will bring true business value. It can serve as a vital improvement to the business by acting as a potential disruptive innovation for its employees. However, these businesses should be mindful of the uses of cloud computing, as well as which services provide suitable public or private clouds (Staten, 2008).

2.    An Explanation of Cloud Computing

It is basically a technology that is used to access different services on the Internet “the cloud.” For the purpose of this paper, Haag and Cumming‟s definition will be used. According to Haag and Cumming (2010), “cloud computing is a technology model is which any and all resources-application software, processing power, data storage, backup facilities, development tools… literally everything-are delivered as a set of services via the Internet. Users of this technology can access the provided services on the Internet without having any previous operational knowledge. It is divided into a number of segments that include the cloud infrastructure, cloud platforms, and cloud applications. This type of technology involves a number of researchers and engineers from different backgrounds, such as grid computing contains software engineers and database experts (Wang &Laszewski, 2008).

3.    Cloud Computing Advantages and Disadvantages

Advantages

Today, cloud computing tends to be different than other computing. People use cloud computing in countless ways. Some people see cloud computing

v  As virtualized computer resources

v  A dynamic development or a deployment of software fragments

v  Different from other computing

v  Supports interactive, user-facing applications, such as web applications

v  Cloud computing implies component-based application constructions

v  Beneficial tool for businesses as users does not have to have a high powered computer to run cloud computing web-based applications as these applications run in the cloud, not in the desktop or PC

v  Cloud computing can improve the performance of a desktop PC

v  Ability for multiple users to collaborate on projects or documents in the cloud

v  Cloud computing provides the ability to access documents from a distance

Disadvantages

v  This technology requires a constant Internet connection

v  Internet connection needs to be a strong speed connection. As it requires a large bandwidth for the connection

v  Cloud  seems  to  have  limited  features  in  applications  as  well

v  Data stored in the cloud can be unsafe

v  It is possible for the cloud systems be hacked and accessed by unauthorized people

4. The Use of Cloud computing to improve Business Value

The concept of cloud computing in business may sound ideal and easy to implement, but like all new technology being introduced into a business that already has a system and method in place it has both positive and negative aspects.

As  previously mentioned, cloud computing has both benefits and drawbacks, however it is vital to examine if these benefits and drawbacks are beneficial or detrimental to businesses when deciding whether or not to implement cloud computing. Although cloud computing has been recognized as a way to improve business, not all businesses are the same. So, is cloud computing for all businesses or is it more beneficial for a certain type of business with certain infrastructure  already  in place?   

 One service provider that has been paving the way for businesses is Amazon. To  narrow the scope of this research paper, Amazon‟s cloud computing services will be    used to give a better idea of the uses of cloud computing in business, as well as how it can improve business.

5. Conclusion

As demonstrated throughout this paper, cloud computing has numerous benefits. Although, like all technology, cloud  computing services have many drawbacks as well, it can be seen that the benefits of cloud computing outweigh its negative aspects. Making use of cloud computing correctly and efficiently in a business can not only increase profits for a company by allowing fewer employees to work remotely, but it can also increase the productivity of a company.  Employees no longer need to wait for its members to gather to work on a single project, rather they can commute to  the  cloud via the Internet to work from wherever, whenever while still remaining up to date with their project partners. Cloud computing offers its customers the services it needs to be successful, innovative, and in step with their competition

References

Etro, F. (2009). The Economic Impact of Cloud Computing on Business Creation, Employment and Output in Europe: An application of the Endogenous Market Structures Approach to a GPT innovation. Review of Business and Economics. 54(2), 179–208.

Galarneau, M. (2009). The advantages and disadvantages of cloud computing. Retrieved December1,2010,from http://www.associatedcontent.com/article/2052513/theadvantages and disadvantages of pg2.html?cat=15, August 2009.

Greggo, A. (2009). Cloud computing in the enterprise: An overview. Paper presented at the Enterprise Computing Conference.