Help Companies Save Money?

Cloud computing was a completely new term a short 9 years ago, in 2007. The basis of this technology is to move the workload of IT activities away from an organization, and to one or more third parties that have resources dedicated to processing such things. These can be, but are not limited to, networking, storage, software systems, and applications. Rather than having to create and maintain their own expensive datacenters, companies can pay a fee to use someone else’s. This makes growing businesses extremely flexible, as they can easily gain or remove storage space per their needs. Being able to purchase the use of online storage space is known as “hardware as a service,” or, more simply, “virtualization.” Being able to purchase the use of online software is known as “software as a service.” Both are very powerful tools that allow the minimization of a company’s IT budget.

In statement, Alijabre writes “Cloud Computing can help business shift their focus to developing god business applications that will bring true business value.” To prove his point Alijabre, uses statistical data gathered from one of big leading providers in Cloud Services. “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?” To make his argument, Alijabre uses Amazon Cloud Service to give us a better idea the use of cloud computing in business, and what can they do to improve it. Amazon has been one of the best providers of cloud services to individuals or to small businesses. “Also, it has more than 79 million active customer accounts around the world, along with around one and a half million active seller accounts.” Undoubtedly, Amazon is the leading source in providing cloud services. Amazon makes it easier for the consumers to access their data online, only thing needed

Some of the immediate advantages of cloud computing involve lower equipment costs, scalability and online collaboration. A company can take advantage of cloud services without major upgrades to their existing equipment and infrastructure. Using a web browser, most company employees can access “Software as a Service” or SaaS. This service runs on a cloud provider’s server with no installed on the local server within the organization.

As businesses have noticed over the last decade the initial cost of storage and bandwidth continue to diminish rapidly. As a result the offerings of Cloud-based services have become more and more attractive to businesses which are seeking to reduce their software licensing costs. It is now coming into the light that the Cloud provides businesses with cost-effective alternatives, organizations need to be cautious and not fall into the ‘all Cloud’ solution trap. We all know that there is no one-model-fits-all and rather than jumping out of the pan and into the fire into the Cloud, Organizations should investigate and plan how they can maximize the benefits of their existing set-up

When there is a reduction in the delivery time and fixed costs, it could be leveraged the way procurement of services occurs. Therefore, it is not suitable to make one single justification of cloud technology implementation. For example, if a business has internal ERP and CRM solutions together, then there might be a problem regarding security of data for organizations, hence it would be more suitable for enterprises to keep ERP on in-house servers while shifting CRM component to cloud.

This leads to reduction in costs of operations. b. The employees can easily access information wherever they are, and they do not have to stay in their desks. c. It allows organisations to manage increased storage, than they would on private computer systems. d. The company does not have to spend money on maintenance and hence can be cheaper for its operations.Although the benefits of Cloud computing are evident, there have been questions raised about this technology by Rash (2009), Tidd, Bessant, & Pavitt, (2005) and Shapiro, (2002) all of whom have given various reasons as given below;. a. The main problem facing these organisations is their data security. b. It is not possible to determine the exact benefits that the organisations can accrue.Although it has been found that this technology has many demerits, it is also evident that there are many benefits.For the organisations, the benefits listed above are important and hence provide the motivation for resorting to using the Cloud concept, because, according to Benbasat and Barki (2007), and Schwarz, and Chin, (2007), while large companies can actually afford their own

Possibly the most substantial benefit to cloud computing, is cost savings. With cloud computing a business is able to extensively save costs by not having in-house server storage, having no need to purchase expensive equipment and staffing money can be used for other IT resources. This can potentially increase productivity ensuring time is spent on other tasks instead of maintaining IT infrastructures. Cost savings can also be seen in regards to the operational costs of maintaining multiple servers such as power and administration costs (Advantages and Disadvantages of Cloud Computing, 2015). When a business uses cloud storage you are only paying for what you use. It ensures security and

There are various types of cloud services that are available; Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Each of these services provides a unique service to an organization and should be implemented when there is a competitive advantage. For instance, SaaS, is a service that provides a software which I deployed over the internet. It is designed for end-users, through a subscription, which is generally “pay-as-you-go.” And with

The federal "Cloud First" policy outlines requirements for organizations to look at cloud solutions before investing money in information technology upgrades. Through implementation of cloud systems, organizations can improve utilization rates and increase the efficiency of information systems expenditures. This allows organizations to reduce overall spending on information systems or allows them to increase capabilities for the same expenditure. These cloud services will also improve the ability to quickly scale operations to meet demand and offer greater flexibility to add, remove, or modify capabilities. These are the three benefits of cloud services: efficiency, agility, and innovation (Table 1). Moving to cloud based services is changing the focus of information technology investment from assets to services.

Cloud computing increased technology to run business rapidly, rather than running the applications on a computer or a LAN, they run on a shared multi-tenant. It's self-service oriented to use any application that runs within the cloud, simply logged in, customize it in step with the client wants, and start exploring it. Additional Businesses square measure running all types of applications within the cloud today, like CRM, accounting, HR, and customized applications. Cloud-based applications value less, since the client doesn’t get. To get all the hardware and software system, facilities, or intensive configuration and maintenance of a full technology stack, to run them. Cloud provides additional scalable, additional reliable and safer

Ignoring the security concerns for cloud computing, it is very resourceful to large organizations. Specifically where the demand for processing power and data storage is constantly fluctuating. Configuring the cloud to absorb increased network traffic and processing jobs will eventually cause the cloud to be underutilized other times. Though a company has the option to pay per hour for computing resources (Stair &Reynolds 2018). This allows for the company to only pay for what they need and prove beneficial to overhead costs as the cost for renting processing power is much cheaper than owning it.

Specifically cloud computing vendors can provide most of the hardware require, all a company needs is a basic computer and an internet connection. The rapid rise of cloud computing has provided workers more flexibility with the potential from home. This advancement provides companies with the ability to retain quality workers who have other responsibilities.

Now that our company may be categorized as a small to medium sized firm, I believe we should consider the prospects of moving towards cloud computing. Traditional business applications have always been expensive and complicated. There is a daunting amount of hardware and software that needs to be dealt with, and more than likely, a team of experts is required to install, configure, test, run, secure and update them. (What is cloud computing?, 2016) Recently, cloud computing is a trend that is being observed in all kinds of businesses. This could be especially beneficial to a firm of our size.

Cloud-based applications often enable access to specialized technology and advanced computing resources that otherwise would have not been accessible to SMEs (Saugatuck 2008).

The cloud is a big shift from the conventional way companies imagine IT resources to be. What is it about cloud computing that is making it so popular? Here are a few reasons that are the main drivers for companies to switch over to cloud computing. The first reason is the cost factor because it helps companies avoid large capital expenses on upgrades and hardware. An example of this can be setting up data centers, this can be cost prevailing as companies will have to invest in racks or servers, electricity costs for power and cooling 24/7, and IT experts for managing all the equipment and providing client support. All of these costs can add up quickly.