Effects of Cloud-Based Computing on Organizations in terms of Costs and Management

Introduction

The last couple of users have been marked by an exponential in regard to the adoption and utilization of cloud-computing system in resource planning (Marston et al., 2011). Cloud computing is a contemporary trend that is evolving rather rapidly that before with organizations of all sizes and structures adapting the new technology which is believed to increase further in the coming years. Cloud computing remains to be among the most debated and capable IT innovations in the technology world today. It is highly appealing to most organizations based on its ability to generate a number of potentials like cost saving and management and operations efficiency. This is made up of an essential shift in the manner in which different organizations are provided with computing resources. Most organizations globally particularly large and medium companies have extensively appreciated the responsibility of IT in being a business primary driver and enhancer in the contemporary society hence resulting in the increased adoption levels of cloud computing systems (Marston et al., 201, p. 177). It cannot be denied that IT is a fundamental and a necessary aspect of running any business effectively in the contemporary society. As a result of cloud computing adaptation, there are a number of benefits in relating to efficiency and cost saving that is generated. However, there are several risks as well that comes with cloud technology, thus affecting management strategies towards the involved risks. There is a growing need to operate business effectively with fewer expenses and high efficiency for improved profit and increased ability for competitive advantage.

Research Objectives

This research will seek to establish the impact of cloud-computing with respect to cost and organizational management. The primary objective is to highlight the associated benefits with the adoption of this technology and how the associated management risks can be mitigated.

Preliminary Literature Review

Cloud Computing Benefits

According to, Subashini and Kavitha (2011) it is widely acknowledged that technology particularly computers remains to be one of the essential parts of the contemporary business. From the point that computers evolved into the business world across the globe, organizations have not only benefited from competitive advantage but the ability to utilize data to run operations with ease. With globalization, organizations are required to run multiple activities all at ones and this has been made more effective by cloud computing. However, it should be noted that with this technology a number of challenges in regard to computing integration with organizational structures evolved along with the need for consistent information flow from a location to another without limitation. The expenses of maintaining IT systems increased with the need to purchase more advanced servers and hire IT personnel’s which furthered the cost of business. Khajeh-Hosseini et al., (2010) notes that the challenges created a market and technology push for the development of cloud computing which has brought a number of potentials like efficiency, simplicity and cost saving but some risks to the management which thus implies that the primary worry lies on its application rather than infrastructure.

Cloud Computing Cost benefits

Based on Sultan (2011) Cloud computing can best be described as a number of internet connected computing facilities. In other words, it is both a site and an application. In that, it provides a platform where data can be stored and can be accessed easily via the internet. Cloud computing has transformed the manner in which different organizations utilize computers, stored information, and the internet. The systems provide its users with more access of data, presentations, and files with the use of internet and this means that the users are no longer restricted to utilizing computers as the collaboration can be acquired from differentiated locations. Brender and Markov (2013) assert that Organizations in the contemporary society are guided by the need to reduce the operating expense. Most of them begin accomplishing the objective by integrating their Information Technology activities and implementation of virtualization technology that involves the optimization of the server’s ability to develop and store data. Through the use of cloud computing, most organizations are able to get rid of additional expenses by ensuring that they enhance utilization, decreasing infrastructure and operational expenses. This aspect provides organizations with increased availability of resource groups (Ercan, 2010).

Cloud computing is so far the most cost-friendly technology development to utilize, maintain and renovate. While compared to traditional computing whose implementation of software’s accrued a lot with respect to finances the approach is more efficient in saving funds. The cost saving aspect is mainly derived from the fact that the system creates efficiency in general which implies that companies can operate at ease and speedily (Ramgovind, Eloff and Smith, 2010). Traditional computing add up a high licensing expense when it comes to multiple computing users which can, in turn, be costly to be established fully. On the other hand, Cloud computing is easily adopted at lower rates which implies that the company will spend less in regard to IT expenses as illustrated by Transaction Cost theory (Ma, 2016). Also, there are a number of payment options which creates cost efficiency for the involved companies. Cloud computing has close to boundless data storage with tailback and recovery options. With the unrestricted storage, organizations need not worry in regard to increase their storage space which is associated with more cost. More so, since data is mainly stored within clouded systems this implies that storing it is easier and less costly (Chang, Walters & Wills, 2015).

Based on Carroll, Merwe, and Kotze, (2011) in addition, easy and rapid implementation also helps in cost saving. In the business world today which is characterized by extreme competition it is essential for organizations to expand their capacities to respond to market changes. Cloud computing supports and improves organizations responsiveness to changes. The easy implementation is achieved by the fact that the systems permit organizations to preserve the same business procedures without having to deal with past challenges of application. The systems are manageable at ease as long as the company has exposed to internet which makes the development of clouding infrastructure simple and fast (Pearson and Benameur, 2010). Accessibility is an additional benefit since data can be accessed from any location without the limitation of time. With a well-developed infrastructure, this means that the enterprise productivity and efficiency are improved which ensure that the features are easily accessed which thus facilitates information sharing and collaborations. This technology is also associated with flexibility because with no hardware’s required companies can easily add their resources that best suits the needs of the company.

Cloud Computing Risks With Respect To Management

Marinescu, (2013) holds that, despite, the associated benefits with the use of cloud computing, there are a number of risks that companies should understand prior to the implementation. In that having the knowledge of the risks enables the management to develop strategies for mitigating risks hence enhancing their capabilities and data availability (Hurson, 2013). To begin with, the major risk is associated with data security and confidentiality loss. Technology is bound to fail now and then, thus the management is expected to maintain constant regulation of the servers to secure data. In that, for management operations to be accounted as effective it means that the systems should run full time without any interruptions. However, with cloud computing issues raised by internet failure, hardware issues, and natural disasters are bound to affect the functionality of the systems (Miles, 2012). There are also threats that are related to interference by non-users where they get access to the system thus affecting information confidentiality. In other words, technical problems will easily affect the functioning of information systems (Marinescu, 2013). Although it is factual that data and information from cloud systems can be accessed in need with dysfunctions this is not achievable.

Cloud computing information storing makes the organization highly vulnerable to external hacking and threats since not everything from the internet is guaranteed on security and thus there is always the loss of data sensitivity. According to Heiser and Nicolett, (2008) Security issues means that the company is forced to submit all its sensitive information to personnel’s which creates attacks vulnerability. It is thus evident that while cloud computing has the ability to enhance the performance of the organization by supporting cost saving and increased consistency, it is also associated with a number of disadvantages particularly to the management that is forced to adopt differentiated strategies in order to mitigate risks related to security. The management is therefore required to employ the right personnel’s that seek to ensure that the systems are not only secure but also to guarantee that sensitive information that might be utilized for the disadvantage of the organization are not leaked (Bond, 2015). This can best be achieved through the application of strategic as well as functional measures which are customized to ensure that security and functionality needs are meet. This is because while the systems need to operate consistently, they are also required to be secure for use.

Research Questions

1. Do cloud computing adoption and implementation lead to cost saving benefit and how?
2. What are the risks with respect to organizational management that results from the application of cloud-based resource programs?

Proposed Research Methods

Introduction

This chapter will offer a detailed methodology for the dissertation. This study will acquire data from secondary sources retrieved from different scholarly websites, books, and journals on the internet. In this chapter, the researcher highlights the research strategy, method, approach, data collection instruments, data analysis and research ethical issues.

Research Design and Data collection

Cloud computing is a broad subject that is characterized by a wide source of information but this research will focus on a limited scope of investigation on the systems effects in regard to cost saving and management challenges. Therefore, a descriptive design that follows a secondary research approach will be utilized. The methods were selected based on their flexibility, ability to generate maximum information within the shortest period as well as convenience. In addition, the use of secondary sources has a number of benefits. To begin with, it is associated with accessibility because secondary resources such as books and journals are easily accessible on the internet. In this case, there are more sources that provide information in regard to cloud computing benefits and the associated threats (Vogt, Gardner and Haeffele, 2012). In addition, the approach is cost friendly as when compared to primary research it is cheaper and mainly necessitates less time in obtaining adequate information. In addition, the approach is more insightful based on the fact that secondary research officers the investigator with different and more reliable perspective. With more information, the research grounds the focus of research based on facts rather than assumptions since primary research necessitates more time for verifications (Collins, 2017). The primary disadvantage is the fact that it requires the researcher to buy most journals to be utilized based on their reliability and genuineness.

Sources of Data

The research will utilize data from secondary sources which means that the data has already been gathered and thus the researcher will be required to filter sources from the scholarly sources such as Google Scholar and Ebsco Host. These sources were selected based on the fact that they are reliable for research and the data on this site is readily available and accessible on the internet. For academic research, the sources permit the research to utilize the journals and books.

Data Analysis

Content analysis will be utilized in analyzing data acquired from secondary sources. This is an analysis in which data is basically categorized based on themes which enables comparison to be done. The primary benefit of this analysis is that it enables the researcher to minimize and simplify the acquired concepts while generating data that can be measured and conclusions developed at ease. More so, content analysis offers the researchers the capability to structure secondary data in a manner that fulfills the objectives of the study. In this context, human error is less involved as data has already been collected thus lowering the risks of misinterpretation and generalizations.

Ethical Issues

The current research is exposed to a number of ethical issues. In that, given that the research information will be obtained from secondary sources the study will acknowledge all the utilized sources through citing and referencing the sources appropriately. This means that plagiarism will not be accommodated or information used illegally without adhering to research standards. The researcher will also seek permission from the research department from the university which will ensure that the research is a recognized one. The acquired information and results of the study will not be utilized for any other purpose such as commercial but only for academic reasons.

Proposed Timeline

The table below shows the time line to be followed when carrying out the entire research.

Week/Activity	Week 1	Week 2	Week 3	Week 4	Week 5
Proposal
Data Collection
Data Analysis
Research Drafting
Modifications
Report Submission
Presentation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

Bond, J, 2015. The Enterprise Cloud: Best Practices For Transforming Legacy It.             Http://Search.Ebscohost.Com/Login.Aspx?Direct=True&Scope=Site&Db=Nlebk&Db=N            labk&An=994159.

Brender, N. and Markov, I., 2013. Risk perception and risk management in cloud computing: Results from a case study of Swiss companies. International journal of information management, 33(5), pp.726-733.

Carroll, M., Van Der Merwe, A. and Kotze, P., 2011, August. Secure cloud computing: Benefits, risks and controls. In Information Security South Africa (ISSA), 2011 (pp. 1-9). IEEE.

Chang, V., Walters, R. J., & Wills, G, 2015. Delivery and adoption of cloud computing services in contemporary organizations. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=986104. Top of Form

Collins, H, 2017. Creative research: the theory and practice of research for the creative industries. London, Fairchild Books, Bloomsbury Publishing Plc.

Ercan, T., 2010. Effective use of cloud computing in educational institutions. Procedia-Social and Behavioral Sciences, 2(2), pp.938-942.

Heiser, J. and Nicolett, M., 2008. Assessing the security risks of cloud computing. Gartner report, 2(8), pp.2-6.

Hurson, A. R, 2013. Advances in Computers. Connected Computing Environment Volume 90 Volume 90.

Khajeh-Hosseini, A., Greenwood, D. and Sommerville, I., 2010, July. Cloud migration: A case study of migrating an enterprise it system to iaas. In Cloud Computing (CLOUD), 2010 IEEE 3rd International Conference on (pp. 450-457). IEEE.

Khajeh-Hosseini, A., Sommerville, I. and Sriram, I., 2010. Research challenges for enterprise cloud computing. arXiv preprint arXiv:1001.3257.

Ma, Z, 2016. Managing Big Data in Cloud Computing Environments. Igi Global.

Marinescu, D. C, 2013. Cloud Computing: Theory and Practice. Elsevier Science & Technology. Http://Public.Eblib.Com/Choice/Publicfullrecord.Aspx?P=1213925.

Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J. and Ghalsasi, A., 2011. Cloud computing—The business perspective. Decision support systems, 51(1), pp.176-189.

Miles, J. A, 2012. Management and Organization Theory: A Jossey-Bass Reader. Hoboken, John Wiley & Sons. http://public.eblib.com/choice/publicfullrecord.aspx?p=817720.

Pearson, S. and Benameur, A., 2010, November. Privacy, security and trust issues arising from cloud computing. In Cloud Computing Technology and Science (CloudCom), 2010 IEEE Second International Conference on (pp. 693-702). IEEE.Top of Form

Ramgovind, S., Eloff, M.M. and Smith, E., 2010, August. The management of security in cloud computing. In Information Security for South Africa (ISSA), 2010 (pp. 1-7). IEEE.

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Sultan, N.A., 2011. Reaching for the “cloud”: How SMEs can manage. International journal of information management, 31(3), pp.272-278.

Vogt, W. P., Gardner, D. C., & Haeffele, L. M, 2012. When to use what research design. New York: Guilford Press.Bottom of Form