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Advantages and Disadvantages of Cloud Computing

Topic: ‘Advantages and Disadvantages of Cloud Computing for Businesses’

1. Introduction

The core purpose of the research is to elucidate the concept of cloud computing and establish the base of its knowledge. More specifically, this research study illuminates the advantages and disadvantages of cloud computing in the context of business. The evaluation of the businesses requires faster access to innovation in order to drive growth. The innovative techniques and faster access accelerate the productivity and enhance the financial stability of the business. Studies demonstrate that cloud computing is no longer considered as only advanced technology, rather is considered as one of the major requirements for ensuring the security of confidential data (Buyyaet al. 2010). Babar and Chauhan (2011) defined the web or data centre as the epicenter of innovation, and this becomes a vital necessity over traditional technology cycle. Continuous stream of manageable improvements is possible with the help of cloud computing procedures. Eventually, it helps to deal with the challenges and issues that the businesses confront in handling gigantic data and information. However, arguments take place in analysing the significance of cloud computing in the context of business. The fact has been illustrated briefly in the literature review section. In order to conduct an investigation in an effective manner, it is important to create a proper framework with research aim, objectives and scope as well. 

2. Project Objective

            The aim of the study is to illuminate as well as establish an in-depth knowledge of advantage and disadvantages of cloud computing for the business. In order to att ........

specifically, this research study illuminates the advantages and disadvantages of cloud computing in the context of business. The evaluation of the businesses requires faster access to innovation in order to drive growth. The innovative techniques and faster access accelerate the productivity and enhance the financial stability of the business. Studies demonstrate that cloud computing is no longer considered as only advanced technology, rather is considered as one of the major requirements for ensuring the security of confidential data (Buyyaet al. 2010). Babar and Chauhan (2011) defined the web or data centre as the epicenter of innovation, and this becomes a vital necessity over traditional technology cycle. Continuous stream of manageable improvements is possible with the help of cloud computing procedures. Eventually, it helps to deal with the challenges and issues that the businesses confront in handling gigantic data and information. However, arguments take place in analysing the significance of cloud computing in the context of business. The fact has been illustrated briefly in the literature review section. In order to conduct an investigation in an effective manner, it is important to create a proper framework with research aim, objectives and scope as well. 

2. Project Objective

            The aim of the study is to illuminate as well as establish an in-depth knowledge of advantage and disadvantages of cloud computing for the business. In order to attain the aim of the study, it is essential to frame certain objectives. The objectives of the project are manifested in the below section:

  • To identify the advantages of incorporating cloud computing in business and discuss its benefits
  • To address the disadvantages of cloud computing and its impact on business

3. Project Scope

            This project or research work provides an opportunity to establish the base of the knowledge of cloud computing. A number of small organisations have not incorporated cloud computing into their organisational operations due to not having a clear knowledge of its benefits and risks. It has been found that most of the projects, conducted on cloud computing, concentrated on complex factors. Few researches were done on the basic concepts, and there is scope to provide basic knowledge that would help to build the base of this field. At the same, this present study brings an opportunity to understand the field of research in an in-depth manner.

4. Literature Review

            In order to establish this particular section, required data and information has been gathered from several secondary sources like academic books, journals articles, relevant websites and other publications. 

4.1 Insights of Cloud Computing in Business Context

            As per the statement of Aljabre (2012), the cloud computing becomes an integral part of organisational operation since the past couple of years. However, the small and medium businesses are not aware of the use of the cloud computing in a secure manner. This is the reason that most of the SMEs are lagging behind with a question that whether the cloud computing can be a solution or risk. In most of the small businesses, the hardware layers are identified as the information system or network. In order to be more precise, they have a server along with a series of desktop computer systems. These desktop computers are networked with the server, and the data access is restricted to that certain area (Sultan 2011). With the use of cloud computing in business, they would be able to access the data and information from anywhere. Along with that, the data can be accessed from any device other than only office desktop, like Smartphones, iPad, laptop, and so on (Shaikh and Haider 2011).

4.2 Advantages of Cloud Computing in its Benefits

            The advantages of incorporating cloud computing in business are manifested below:

4.2.1 Cost Minimisation Policy

             Considering the discussion of Reilly et al. (2011), it has been found that entering the cloud computing procedure is a cost minimisation policy or low cost proposition. This is because the traditional server desktop network connection requires gigantic investment for the entire setup. In comparing with the cloud computing, here the businesses do not need any large capital investment up front for infrastructure, equipment, and hardware. In this context, it is essential to mention that that some of type of device is required to access the data, but the investment is minimal to implement and maintain the data storage. Hofmann and Woods (2010) added in this context that the cost of maintaining data in the businesses is enormous and it seems to increase day by day. The cloud computing process does not require any kind of software and hardware upgrades or any IT (Information Technology) specialists to maintain the network. As the users are allowed to pay as per their requirement for data storage, it helps them to set their budget. Hence, it can be stated that cloud computing make the budgeting process more predictable in comparison to the traditional process.

4.2.2 Flexibility Enhancement

            As it is mentioned in the previous section, the users only pay for what they use, they have the flexibility of setting their requirements (Shaikh and Haider 2011). It can be elaborated more precisely with the help of an example. Suppose, a small businessman is about to set up his new business and he does not have much budget to invest in all areas of organisational operations. In that case, cloud computing provides a flexible option where the businessman can set a low budget for limited storage. In future, as the business will grow, he can use more computing storage as per the business requirement. Besides, whether the business network is private, public, or combination of both, the business is allowed to pursue the process in a same way. Cloud computing is referred as flexible strategy as it supports multi-platform development environments (Sultan 2011). 

4.2.3 Easy Process and High Sustainability

            Hofmann and Woods (2010) opined that the cloud computing is also considered as a process that streamline many parts of business. It is more efficient to operate all organisational operations with the help of web based application which is available in the cloud. Basically, it excels the strengths of administrative functions and improve management applications as well. Furthermore, cloud computing enhances the sustainability of the data storage. For example, if a business structure is collapsed due to the natural disaster, the data storage will remain unaffected in the cloud.

4.3 Disadvantage of Cloud Computing and its impact on Business

4.3.1 Risk in Data Security

            In critical viewpoint, Jadeja and Modi (2012) discussed that it is the most primary concern that associated with the cloud computing. In this case, the data and information reside elsewhere from the restricted geographical area. The data storage in cloud contains all the confidential information like customer files, proprietary lists, trade secrets and so on. The responsibility for the security of confidential data is judged in a different way. For example, in a research study, it has been found that 69% of cloud providers think the end-users should have the responsibility for the security of the data. Whereas, 35% of end-users agree with the statement and others opposed to the statement (Al-Roomiet al. 2013). However, Agrawal et al. (2010) added in this context that most of the small businesses do not have capital strength that they can use it to adequately protect their data. Thus, it can be stated the organisations that use cloud computing should strengthen their authentication process in order to ensure data security. 

4.3.2 Cost of Data Protection

            Yuriyama and Kushida (2010) represented a different viewpoint in context of the cost minimization advantage through the use of cloud computing. It has been discussed that cloud computing can cost more money in case the network of particular business comes under DDoS (Distributed Denial of Service) attack. Thus, it is suggested that the organisations should inquiry which kind of provision the cloud computing providers have to protect the data against DDoS attack.

4.3.3 Performance Factor

            As per the statement of Reilly et al. (2011, the applications of a business run on a particular server and cloud environment which provides same resources to other businesses too. Thus, it can be stated that the performance of share of a particular business also depends on the requirements of other users. However, a cloud computing provider claims that the available resource is unlimited. Though, theoretically the claim is true, but the hardware scalability is limited. Thus, the end users or the businesses may not know how scalable the network is until they reach to the usage limitation on their system.

5. Conclusion

            The project concludes that there is an effective scope of establishing a research work on the topic of advantage and disadvantage of cloud computing. It has been found that most of the small businesses are not aware of the benefits and risks entering the cloud computing. Several arguments take place in the discussion of advantage and disadvantage of this data storage advancement. However, it can be concluded that cloud computing enhances flexibility of organizational operation but high security is the major concern for ensuring the data protection.