Cloud Computing Strategy Overview XYZ Manufacturing has been struggling for years with inadequate computer resources to track inventory and handle user requests from internal management, orders, and invoices from General Motors, orders and invoices from suppliers, and management reports. There has been major issues storing and retrieving complex data and has recently seen some security breaches. There has been need for a search for an alternative way to handle and provide solutions for current problems. Migrating to cloud computing, performance issues, scalability and economic factors are issues that will be covered to have a great transition to the cloud. Service Models for Cloud Computing To better understand cloud computing there …show more content…
The services might include an operating system, a programming language execution environment, databases and web servers (Tsagklis, 2013). Infrastructure as a Service is the most basic cloud-service model, which provides the user with virtual infrastructure, for example servers and data storage space (Tsagklis, 2013). Virtualization plays a major role in this mode, by allowing IaaS-cloud providers to supply resources on-demand extracting them from their large pools installed in data centers (Tsagklis, 2013). The Pros and Cons of Cloud Computing In my own opinion, cloud computing offers more pros than cons to most companies planning to migrate their services to the cloud. Some pros would be cost efficiency, continuous availability, recovery options, energy efficiency, scalability, quick deployment, increased storage capacity, and device diversity (Tsagklis, 2013). Cost efficiency of using cloud computing for businesses allows the client take advantage of saving from things like licensing fees, cost of data storage, and other overhead charges (Tsagklis, 2013). Paul Croteau, an enterprise solution engineer at Rackspace (cloud computing company), says, “Cloud computing can create a significant return on investment, affording energy, licensing and administrative costs, and it frees up capital and personnel to innovate on new ideas quickly” (Olavsrud, 2013). Continuous availability is another great advantage when utilizing cloud computing
The focus of cloud computing is providing with scalable and a cheap on-demand computing infrastructure with a good quality of service levels. The process of the cloud computing involves a set of network enabled services that can be accessed in a simple and general way. Cloud computing provides with a unique value proposition for any organization to outsource their information and communication technology infrastructure. Moreover, the concept itself provides with a value proposition for an organization as using the cloud saves on cost, resources, and staff, and business opportunities for the organization (Katzan). An extensive connectivity of
There are several advantages of using Cloud Computing, for example: “To begin, businesses can have lower cost computers for users.” Alijabre explains that cloud computing can be very beneficial for the businesses. Moreover, businesses will bring great amount of profit into their company, and it will be easy to use it. Alijabres goes on to provide several examples why cloud computing is better. One of of the most important reason why companies are moving towards cloud computing is the lower cost of the system. “To begin, businesses can have lower cost computers for users.” He explains that small business will not need computers that are high performance based. Business can get less expensive computers and store all of their data online instantly, without having them to worry about the space in a
Companies can remain agile and quickly build their systems with little delay. “One of the biggest advantages of a Cloud based system is that it can be easily set up in a very short period. The addition of new instances can be performed very quickly. In a cloud environment, software can easily be integrated. Hence, minimum effort is required to customize and integrate the applications.” (K. Pal, 2014).
Cloud based computing is affordable for any type of business, small or large. With the ability to save money on all fronts such as server maintenance, software costs, and upgrade expenses. For a monthly fee, PPG can keep all their software updated without paying for unneeded or unused programs. The cloud has the capability to stretch and accommodate large scale demands, as well as decrease if your company’s demands lower. Out of all the organizations that use cloud computing, 49% drove their cost efficiencies up. With rapid
There are numerous amounts of benefits associated with the adoption of the cloud. Some of these include, cost effective, easy maintenance and manageability, backup and recovery, easy access to information, flexible capacity and less environmental impact. Cloud computing is cost effective because there is no need to spend money on hardware and infrastructure. Also, due to the fact that cloud computing services offer the choice of paying for what you use, a company can in turn save money. According to Calder (2010),” In only paying for the resources used, operating costs can be reduced”
Despite the disadvantages of cloud computing, our organization can see an improvement in productivity due to the decreased processing time for data, and reduce costs by eliminating the need for maintenance.
The purpose of this report is to understand the advantages of Cloud Computing for the small and medium enterprise (SMEs) and to
Cloud Computing has the potential to save a lot of money for the company. Cloud Computing is defined by NIST as “a model for enabling ubiquitous, convenient, on demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” (Mell, 2011) This means that instead of worrying about maintaining our own facilities we can pay monthly for a cloud service provider to do that for us. They will take care of all the
Summary – Cloud computing facilitates any organization with efficient data storage and management reducing company 's recurring cost and thereby increasing ROI.
Cloud computing is basically a model based on “pay as you go” that reflects the best business approach for the organization to pay only for the services that are used. Organizations have adopted this approach rapidly due to the attributes of minimal investment, rapid deployment along with cost reduction. Thus, the organizations are free from monitoring and managing the technical issues as it is offered by the service providers. According to Modi, et al. [2], around 91% international organizations have adopted the model of cloud computing for its significant element of cost reduction.
One of the benefits of moving your small business to the cloud is that you will eventually save a lot of money. Cloud computing actually makes businesses to decrease the need for physical space and IT resources. This is a valuable way of saving
Cost benefits is considered to be the most powerful tool in cloud computing. The startup can be costly as one has to purchase the servers, data storage equipment, high speed connectivity devices and much more. It can result in a high cost at the start. But all the resources will be shared so it will give a high profit in the end. Cloud computing therefore enjoys economies of scale. Because a large investment is no doubt made but the
In addition, companies are paying increasing attention to business flexibility. A huge data loss can sink a company. Progressively, in business flexibility strategies, cloud computing is fast becoming a tool of major risk management. The benefits of the cloud, such as lower costs, scalability and flexibility.
The world, as a whole, is changing. It is true that some sections of the world are remaining primitive in terms of industrialization, but the general population is a progressive one. There are incredible advancements being made in the industries of transportation, communications, aerospace and defense, as well as almost every industry related to the culture of society. As these advancements progress and companies innovate, the demand for different products changes. For example, the demand for DVDs today is no where near what it once was. In today’s society, there is a huge demand for technology based products. Due to this increased demand for technology, there has been an impressive amount of innovation on how technology is both used and sold. The largest of these innovative movements has been the movement towards cloud computing. In about as basic of a definition there is, The Cloud is simply a way to store data online. Instead of saving something to a hard drive, it can be saved to The Cloud. As one of The Cloud’s many advantages, this allows files to be accessed from any device at any location. However, it also has some disadvantages. This is arguably the most relevant issue in the business world today, which is why the sources below will help to analyze the benefits of cloud computing versus the costs of it.
In the beginning a lot of talks were about what is the cloud? What does it do? What does it mean to us? Etc. But now the talks started to change and people are really thinking about how they can leverage the cloud, how they can use cloud as delivery model which is more efficient, how can they get services out faster, how can they use cloud with social media, with mobile, with data analytics. This period we are in a flexion point where we have really started using the cloud for advantage. When people want to talk about cloud computing the first thing they want to talk about is how they can save money in their IT environment and the reason is that they want to use the funds to drive innovation into delivering new applications and services instead of servicing the existing infrastructure. This is an opportunity to change the story of IT from tremendous cost. Instead of spending sixty, seventy or eighty percentage on maintaining the existing systems, organizations can flip the economic equation. A good example of how cloud allows businesses to grow is the telecommunication industry. The telecommunication industry have tremendous capacity, they have tremendous adjacency to clients and the cloud offers them the ability to bring new services to their clients more quickly, more efficiently and