This paper will explain cloud computing services and the future of this information technology system. Reasons cloud computing will be a paradigm shift in the way information technology will be designed, managed and used will be discussed. An explanation for the drive towards this change and pro’s and con’s surrounding the move. Also, details explaining the cloud computing, how it works, and how it is different from what we have today.
Today the majority of the information technology shops are considered to be Locally-installed and managed IT shops, ‘traditional’ or on premise. In recent years, we have seen an increase in an interest and move towards what many refer to as the cloud or ...view middle of the document...
Current business challenges include the requirements to find cost saving and maintain profit margins. Another challenge is getting a product or solution to market coupled with the short lifetime of products and services. In tough economic times bring, less opportunity and a tighter and smaller market.
As the advantages and opportunities associated with cloud computing are discussed, it will become apparent how these advantages align with the business needs and challenges. As previously mentioned, one of the primary concerns today are fiscal challenges. An opportunity provided by cloud computing is cost savings. Studies show that Costs (TCO) is significantly lower when compared with traditional on premise counterparts. Other opportunities associated with cloud computing includes:
• Complexity reduction by outsourcing of IT
• Reduced vendor management as all software can be obtained via the Internet (SaaS)
• The Business focuses on Business goals rather than being an IT shop
• Economies of scale allow the cloud vendor to deploy the newest technologies and services efficiently through economies of scale.
• Benefit of cost structures include “Only pay for what you use” and “Marginal Capital Expenditures”
• Flexible and Easy to upscale and to downsize
• On-demand, Instantly available, IT as commodity
When considering cloud computing solutions there are several models. One of the solution models is Portfolio management. Management of IT purchases, controlling the use of IT assets and vendor or solution policies best describes this model. Shared services center has a centralized management model of all decentralized IT resources. There is an allocation of expertise. Hosting is another model where the provider’s resources are used to provide a service or additional capacity. Outsourcing & offshoring may be used to shift IT services to providers or use standardized, shared services.
Perhaps one of the reasons cloud computing has not moved any faster are the associated risks. To demonstrate security issues of cloud computing are real, included is a list of newsworthy incidents over the past several years that are all related to cloud computing in some way shape or form.
• Thousands of customers lost their data in the cloud due to the ‘Sidekick
disaster’ of Microsoft/T-Mobile (2009)
• Botnet incident at Amazon EC2 infected customer’s computers and
compromised their privacy (2009)
• Security flaws in GoogleDocs gave erroneous permissions to its users
• Thousands of Hotmail accounts were hacked due to technical flaws in
Microsoft’s software (2010)
• Hackers stole credentials of Salesforce.com’s customers via phishing
There are definitely concerns and questions surrounding the risk associated with cloud computing. Below some of the identified risks will be discussed. There is without a doubt, weak control over the data as it is not in the owners control. Concerns around failing backup &...