Essay Sample on Cloud Computing Strategy

Introduction

Cloud computing is a technology that refers to the use of computer properties particularly, hardware and software that operates in remote machines and are delivered to the end consumers as service over the network, with the most dominant platform being the internet (Grossman, 2009). This means that an organization or a user stored his data to a remote database which he has no control over. When cloud computing was introduced, there were numerous critics on its application, but this has since cut the cost for organizations and has helped users focus on their core business instead of being obstructed by different IT issues. This technology has proved important and is expected to stay for the near future. While in the past applications were downloaded and installed on physical computers or servers in their organizations, this concept allows organizations and people to access similar applications via the internet (Furht & Escalante, 2010). Cloud computing has become pervasive in the contemporary business world to the point that organizations find it difficult to envisage the use of applications and innovation concepts without cloud technology. When compared to the outdated, pre-cloud conditions, this new concept has portrayed efficiency that empowers organizations to manage their capital effectively and at the same time increase their business adaptability. As shown by software and hardware specialist, cloud computing has influenced how web hosting and server farms operate. This paper highlights on the advantages and disadvantages of cloud computing in a business venture then discusses the best strategy for migrating to cloud computing.

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Advantages of Cloud Computing

Cloud computing has numerous benefits to both business entities and users across different spheres. The primary advantage of the technology is that there is no need of supporting the infrastructure or acquiring the knowledge to develop and sustain the infrastructure or an application. Numerous and tedious activities have been overtaken by cloud computing as organizations have sufficient time to grow their business model (Miller, 2008). Business entities can now focus on the main business activities, outsourcing the hustle of tracking the inventory and handling user requests efficiently.

Cost Efficiency: This is the main advantage of using cloud computing technology at XYZ Manufacturing. With the technology, XYZ Manufacturing can eliminate the investments that could be otherwise made in stand-alone hardware, software, and servers to facilitate their day-to-day operations. By taking advantage of the cloud computing capabilities, the company can save on the licensing charges while at the same time minimize overhead costs that are related to data storage, software purchase, costly inventory management and the management process. The cost incurred in tracking invoices manually at XYZ Manufacturing and handling of user requests will be facilitated in a more cost-efficient manner. Cloud can be acquired at a much cheaper rate compared to the conventional method and can reduce the cost of operations. Subsequently, convenient and scalable charging models patterns have been introduced in the cloud computing industry (Grossman, 2009). This includes 'one-time payment' and 'pay as you go' approach, making the technology more attractive. The use of cloud computing is expected to provide better cash flow by minimizing the capital expense (CAPEX) related to the development and maintenance of servers.

Convenience: Cloud technology offers services that can be accessed anywhere. This attributes enables easy access to information from different location (Detroit, Michigan, and field offices in Omaha, Nebraska; Austin, Texas; and Orlando, Florida) and can accommodate different users in varied time zones and locations within and without the organization. With this, issues with inventory management and management of big data will be solved. As a side benefit, the collaboration with other stakeholders in different locations will boom since it will be easier than ever to acquire access, view and revise shared data and information over the server. At the same time, there is service uptime which is guaranteed with the technology and is provided continuously. The contemporary cloud vendors utilize numerous servers to achieve maximum redundancy, and this means that in the event there is a system failure at XYZ Manufacturing, substitute instances are automatically provided on other machines.

Backup and Recovery: When cloud computing technology is used in at XYZ Manufacturing, the backup and recovery process is simplified because data now resides on the cloud but not on the physical devices that can be damaged. The different cloud service providers offer consistent and adaptable backup and recovery solutions. In many cases, the cloud itself is utilized independently as a backup device for data in the local computers.

Environmentally Friendly: The cloud computing technology is more efficient compared to the typical IT infrastructure and also takes little resources to operate, hence saves energy. For instance, when the cloud servers are not in use, the infrastructure usually scales down, releasing resources and uses less power. At a single moment, only the resources that are truly needed are used or activated by the system.

Redundancy: cloud technology is often built on strong architecture and therefore provides redundancy to the users. There is an automatic failover between hardware together with disaster recovery services.

Scalability and Performance: Cloud computing technology is scalable and is deployed automatically when required, and for this reason, XYZ Manufacturing will pay for applications and data that is needed. This means that it can be customized for applications needed to meet the changing IT system demands of the suppliers and the employees at XYZ Manufacturing. In relation to its performance, the system uses distributed architectures which provides exceptional speed. The service provider ensures that the services operate efficiently and is responsible for any loss in the company (Grossman, 2009). This means that service providers can instantly add other components in the cloud to achieve improved performance and realize customer satisfaction.

Ease of Integration: cloud system can be integrated in a short time, making deployment another benefit. At the same time, the induction of new users to the system is easy, and this eliminates possible waiting time and eases inventory management. At the same time, software assimilation into the system is done automatically. XYZ Manufacturing has the liberty to choose the services and application that aligns with its preferences. There is a minimum effort when customizing and integrating the software into the applications to facilitate easy operations at XYZ Manufacturing.

Large storage capacity: There is an inability to save and retrieve "big data" at XYZ Manufacturing. Cloud technology can accommodate and save large data compared to the virtual computer machines in a manner that provides unlimited storage capacity. This eradicates the worries related to out of storage space and at the same time saves the company the hustle of upgrading the hardware, further reducing operational costs.

Diversity and Location Freedom: cloud computing can be accessed through different devices as long as the device can be connected to the internet. This includes traditional personal computers, smartphones, and tablets. With the cloud computing technology at XYZ Manufacturing, the "bring your device" (BYOD) policy can be implemented to allow employees and supplies bring their devices to work. There is no limitation of place and medium as users can access the applications and organization information from any location making the method attractive and convenient to the suppliers and employees located in different geographic locations across the globe. The 200 employees at XYZ Manufacturing will be integrated into a single system.

Small learning curve: cloud computing application has a smaller learning curve compared to the traditional concepts that involve complex software. People are quite conversant with the applications, and this makes them easy to adopt and use. Examples of such applications include Google Docs and Gmail.

Disadvantages of Cloud Computing

As discussed, cloud computing has numerous benefits to the users, but it also comes with a set of problems and inadequacies that organizations and business entities should address. Some of the disadvantages include the following:

Security and privacy: This is the primary concern when it comes to cloud computing services. This is because when data storage is leveraged to a remote location, an organization essentially gives away essential data and information, things that are susceptible and confidential in an organization. It is, therefore, the responsibility of the cloud service provider to protect and ensure that the data is managed effectively, hence the importance of a reliable service provider. The business operations can be affected hence the need to engage with all stakeholders before a decision is made (Armbrust et al., 2010). At the same time, the end users also feel unsafe submitting their personal information to the third party. It is therefore important to establish trust with the service providers to achieve data protection and prevent access from unauthorized users. Data breach and password leakage published in the media do not give reassurance to the concerned users. But in comparison to the traditional method, cloud computing has proved more safe and private.

Dependency on the vendor: This is another disadvantage and is what the industry calls "vendor lock-in" since it is hard and sometimes impossible to shift to another provider once a business entity enrolls with one. In the event that a user decides to change the provider, it can be cumbersome and involving to move huge data from the old provider to another one. This is another reason why stakeholders in the business entities need to be involved before a cloud vendor is selected.

Technical issues and Interruption: The small business entities can enjoy a technical and interruption prone cloud but for the "big data" organizations, will be faced with system dysfunctions from time to time. Technical issues and interruptions are possible even in the best cloud service vendors. At the same time, it is important to note that the whole system depends on internet connectivity and this means that any internet issue can render the system ineffective. The cloud can also take several minutes to detect an issue with the server hence the need to put in place mitigation and contingency measures.

Limited control: there are cloud services that are operated from third-party virtual servers, and this means that users and companies have limited control over their functioning and execution. At the same time, since remote software is used, there are no features that are operated locally.

Increased vulnerability: This is linked to the security of business information. The cloud-based solution is exposed to the public and is, for this reason, a vulnerable target to the public and malicious users. There is nothing on the internet that is completely secure, and even the big corporations suffer from attacks and data breaches (Armbrust et al., 2010). Because of the interdependency of the system to the operation process, a compromise of a single machine affects the entire business operation, leading to losses.

Migrating to Cloud Computing

The success of cloud computing relies on the level of disruption that data faces and the budget allocated to realize a smooth migration. Even though there exist native services offered by cloud computing service providers for migrating data, the solutions to migrati...