Should Business Move To The Cloud

Prepared by: Ismail Bin Mahedin (P13D122P) Samat Haron Bin Joll (P13D123P) Hjh Sulzarina Bt Hj. Mohamed (P13D119P) Dayang Suhana Bt Awang Bujang (P13D152P

INTRODUCTION

Cloud computing is a model of computing in which computer processing, storage, software, and other services are provided as a pool of virtualized resources over a network, primarily the Internet. These clouds of computing resources can be accessed on an as-needed basis from any connected device and location. The term "Cloud Computing" has appeared on the radar screen of information systems/information technology and business professionals over the last few years. The term "Cloud" refers to the Internet and "Computing" refers to the use of technology.

Question1:

What business benefits do cloud computing services provide? What problems do they solve?

Cloud computing has become a standard method of software operation for many businesses. It offers many significant advantages, such as a potential cost savings, ease of sharing data and applications, quickly find the desired information, automatic backups, reduced support and maintenance costs and improve the efficiencies.

Question 2:

What are the disadvantages of cloud computing?

Using the cloud computing, the two major disadvantages are security and reliability. In this case study, Amazon's cloud service has shown significant outages in 2011 and 2012, causing serious consequences. There are many large sites are using Amazon's cloud computing, so Amazon's cloud computing failure will not only affect Amazon, but also spread to many other companies and have a great impact on them. It also because the user loses control over the software application and becomes dependent on the provider to maintain, update and manage it. If something goes wrong, the user does not have direct access to the software and must depend on the provider to fix the problem. If the provider is unresponsive or unable to fix the problem quickly, the user can experience significant issues. According to the Paris International Group of a report, after investigation they found that each year there are about ten hours or more the server fails.

Another important issue is security. By using a cloud system, your company’s sensitive data and information will be stored on third-party servers, and you will probably have very limited knowledge or control regarding this information. If the provider has inadequate security or encryption systems or procedures, or if a breach of these systems or procedures occurs for any reason, your company’s private and confidential data may become compromised. This could have devastating effects, and could cause legal problems for your company if third party confidential information (for example, customer information) is compromised.

Total Cost Ownership (TCO) is a financial estimate intended to help buyer and owners determine the direct and indirect cost of a product or system.Amazon must provide hardware capacity planning and scalability. With the development of information technology, Amazon will have more and more customers. Not just Amazon, but Amazon's customer requires a large database to store a variety of data and information. This will help the company grow. Amazon must bear the total TCO of its services, while Amazon is also needed to maintain the profitability of the company. However, the services' subscribers benefit from not having to worry about these issues.

Question 3:How do the concepts of capacity planning, scalability, and TCO apply to this case?

Capacity planning is defined as the process of predicting when a computer hardware system becomes saturated to ensure that adequate computing resources are available for work of different priorities and that the firm has enough computing power for its current and future needs. Indeed, Amazon must plan its future needs to be capable of providing sufficient computing power for both AWS and Amazon retail services, a lack of which will result in the a fore mentioned rejection by subscribers.

Related to capacity planning is scalability, which is defined as the ability of a computer, product, or system to expand to serve a large number of users without breaking down. Scalability is a ability of a system, network or process to handle a growing amount of work in capable manner or its ability to be enlarged to accommodate that growth. Scalability relates to both Amazon and AWS subscribers. Amazon must be able to provide its customers with services that are scalable, as it claims to do on its website: “Take advantage of our massive compute capacity and storage to build whatever kinds of applications your business demands, no matter how fast it grows or how big it gets”.

Question 4:

What kinds of businesses are most likely to benefit from using cloud computing? Why?

As information technology and social development, there have been more and more companies need cloud services. First, the information Internet companies need to use cloud services, such as Facebook, Google, Instagram, Blogspot, Ebay, etc. Because the cloud computing can store large information, and share the information. Second, large multinational corporations, one of the advantages about the cloud computing is that people from around the world can get a faster connectionCloud services can help employees of multinational corporations to establish good communication channels and share the company's resources. This saves the cost of the work to help multinational companies, improve work efficiency. Meanwhile, cloud computing is not perfect, it is sometimes also appear outage. Therefore, it is recommended to use cloud computing company “would be a major risk consider using another computing service as a backup.” Enterprise-class business cloud services can be hugely beneficial, even for quite small businesses.

Cloud services can help employees of multinational corporations to establish good communication channels and share the company's resources. This saves the cost of the work to help multinational companies, improve work efficiency. Meanwhile, cloud computing is not perfect, it is sometimes also appear outage. Therefore, it is recommended to use cloud computing company “would be a major risk consider using another computing service as a backup.” Enterprise-class business cloud services can be hugely beneficial, even for quite small businesses.Regardless of whether a cloud provider sells services at a low level of abstraction like EC2 or a higher level like AppEngine, we believe computing, storage, and networking must all focus on horizontal scalability of virtualized resources rather than on single node performance.

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