Running head: THE CLOUD: A NEW ERA IN BUSINESS COMPUTING

The Cloud: A New Era in Business Computing Rachel A. Whiteside Florida State College at Jacksonville

THE CLOUD: A NEW ERA IN BUSINESS COMPUTING Abstract This paper will define cloud computing services and why this technology is a growing trend within the business world. The paper will begin by describing the concept behind cloud computing, summarizing the types of cloud services, and defining cloud classifications. It will expand on cost, scalability, mobility, productivity, security, continuity and disaster protection in order to explain why many organizations have and will continue to move toward cloud computing for their future technology and business communication needs. Keywords: cloud, computing, technology

THE CLOUD: A NEW ERA IN BUSINESS COMPUTING The Cloud: A New Era in Business Computing What exactly is this cloud that seems to have everyone in the corporate world talking these days? The cloud is basically a service allowing individuals or companies to outsource technology needs to a provider. Providers deliver these services through the Internet to customers for a fee. This fee can be set or flexible. According to The Economics of Cloud Computing (2012), cloud computing does not involve a single technology or a single architecture. Cloud services may include Internet access, software, hardware, data storage etc.

Although many people think of cloud computing as a new technology, the concept is not actually new. Most individuals have been accessing the cloud for quite some time without realizing it. The majority of society takes advantage of basic cloud services on a daily basis by simply accessing their email accounts or stored files through an Internet provider. In this age of technology, cloud-based computing has advanced to much more than email and file storage. Corporations have found that this service is not only an affordable, but also an efficient method to communicate and satisfy business technology needs. Many companies outsource all technology including data infrastructures. Types of Cloud Computing There are four basic types of cloud computing services: public, private, community, and hybrid. Each service offers different alternatives that might make one a better choice over another depending on the organizations IT needs. The key features of each type are detailed below.

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING Public

The public cloud is the more traditional and most popular form of cloud-based computing. With this type of service, providers offer resources such as storage and applications to the general public through the Internet (Huth & Cebula, 2011). These services can be free or pay-per-use. Private With private cloud computing data storage, applications, and infrastructure are dedicated to a specific organization and not shared with the public (Huth & Cebula, 2011). Community A community cloud is simply a cloud shared between two or more organizations (Huth & Cebula, 2011). Businesses may choose this type of cloud because their technology needs are similar. Hybrid Hybrid clouds are a combination of public, private, or community clouds (Huth & Cebula, 2011). Why the combination? Some companies prefer to host high-security applications on private clouds and less critical data on public clouds. Cloud Classifications According to Alexa Huth and James Cebula (2011), there are three cloud service provider classifications: Software as a Service, Platform as a Service, and Infrastructure as a service. SaaS - Software as a Service This is the most common type of cloud service. With SaaS, the provider typically runs a software application for an individual or an organization (Huth & Cebula, 2011). This could be a common software package similar to Microsoft Exchange email or a custom designed application such as payroll or inventory tracking.

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING PaaS Platform as a Service

PaaS providers offer a platform for other organizations to build software applications on (Huth & Cebula, 2011). This service allows consumers to build and host their web applications through cloud-based services. Google offers their version of PaaS cloud services through the Google App Engine. IaaS - Infrastructure as a Service This platform offers hardware services designed to assist or replace entire data storage centers (Huth & Cebula, 2011). Amazon Web Services offers this type of cloud service to the industry. AT&T and HP as well as numerous other companies also offer cloud infrastructure services to their clients. Why Cloud Computing? Cost Many organizations choose the cloud for their IT needs to save money. Companies have discovered that it is less expensive to outsource to the cloud than provide their own in-house IT services. Outsourcing technology needs can eliminate costs involved in building infrastructure or purchasing expensive hardware and software packages. With cloud computing clients only pay for what they need. They do not pay support personnel to install software, manage data, perform routine updates, or resolve technical issues. Nor do they need to be concerned with unexpected expenses or maintenance when technology malfunctions and needs to be replaced. The cloud covers most everything. Scalability One of the many advantages of cloud computing includes the ability to scale up or down when services or resources need adjusting. Many providers allow instant scalability. This can be

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING explained in terms of data storage or network bandwidth. If an organization is low on either of these resources, the cloud can quickly expand to satisfy their service needs. This can prevent costly downtime and the additional expense of purchasing hardware or network resources inhouse. Mobility

Remote data access can be provided within the organization, but the cost to deliver these services securely in-house is generally more expensive than outsourcing to the cloud. As a result, organizations operating in this type of mobile environment often use cloud-based services to provide remote data access to their employees. In this technology driven society, more corporations are beginning to provide their employees with the opportunity to work exclusively from home. Many colleagues communicate in the business world solely through smart phones, email, or video conferencing. This work from home concept has the potential to save companies millions of dollars by eliminating utility costs, travel costs, office space, building maintenance, and technology infrastructure. Increased Productivity Productivity is another important reason companies choose to use cloud services. Cloud computing increases user productivity by allowing clients to access their data anywhere they have Internet access. As stated earlier, many employees work from home. Others have an office, but may have a long commute or travel often. With cloud computing, employees and business owners can access their data away from the office to follow schedules, access files, complete projects, and meet deadlines that might have otherwise been missed or postponed due to data access restrictions.

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING Continuity Business continuity and disaster recovery planning are both very important in the corporate world. Continuity refers to ensuring business operations are functional at all times. Disaster recovery involves making certain a backup plan is in place to ensure an organization is capable of functioning during times of catastrophe or disaster. Many businesses rely exclusively on technology to operate. This being said, downtime is not an option. When computer systems are not fully operational income is lost, customer relationships are damaged, and corporations often go under. Cloud-based service providers offer a cost effective method for maintaining business continuity by allowing corporations to externally host their technology operations at fully monitored, off-site facilities. Cloud Computing Concerns As with any product, cloud computing is not perfect and it is not the ideal solution for everyone. It is important to address disadvantages as well as benefits to this service. There are certainly downsides to conducting business in the cloud. Listed below are several common cloud computing concerns from a business standpoint. Lack of Control

Many customers have a difficult time adjusting to the fact they are no longer directly in charge in the cloud. With in-house data storage and computing, clients have more control in process and service. When technology is not working the way it should, management can walk down the hall and badger IT employees until they fix the problem. The process is much different with cloud computing. When technology is not functioning properly in the cloud, business owners are forced to open a helpdesk ticket just like other end users and wait for the issue to be resolved.

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING Lack of Significance This is closely correlated to lack of control. In the cloud, one customer is no different from another. The CIO of an organization might be important at his company, but in the eyes of the cloud he is just an end user who has paid for a service. This means he will get the same priority as everyone else. Security Most cloud-based providers would agree that security is one of the greatest technology challenges when it comes to data storage and cloud computing. Security in the cloud is top priority whether providers are protecting personal or corporate data. Protecting data in-house

can be expensive, but for some businesses the idea of outsourcing brings on additional questions and concerns. Will data be physically safe in its location? Will data be safeguarded against unauthorized access? How will data be protected across the network and from outside hackers? Data Integrity Data integrity should not be confused with data security. Data integer involves making sure that data remains available and true. Some customers worry that their data could become corrupt or even lost in the Cloud. And, in the event that data is lost or corrupted they are concerned that the cloud service provider will not be able to recover it. Privacy Service providers typically disclose that they have access to data stored in the cloud. This seems logical as they maintain the technology and manage client data and applications, but many companies are not comfortable with having their data accessible by cloud provider. It is also important to note that the cloud is considered a public domain. This means that data housed in a cloud environment is subject to subpoena by the government or law enforcement without

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING notification. Many business owners feel this is a violation of their privacy and choose not use cloud computing services for this specific reason. Conclusion It is clear that cloud-based computing has rapidly transformed the way organizations communicate and conduct business. This service offers numerous advantages including cost savings, hardware reduction, online data preservation, and mobile data access. Most businesses are moving toward cloud computing or already conducting their business in the cloud. A 2012

survey conducted by InformationWeek (2012) revealed that half of respondents are reporting that their companies are in the cloud, 21% are in the process of adopting cloud services, and 29% are in the early stages. Will this trend continue? With these numbers increasing and organizations looking to tighten budgets across the board, analysts predict that business in the cloud will continue to grow in size and popularity. Some believe businesses will operate exclusively in a cloud-based environment where data can be accessed from any device anywhere. Whether this will be the case, only time will tell. Either way this technology is the wave of the future, one that could lie solely in the hands of the cloud.

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING References Delahunty, S. (2012, October 1). Cloud business case. InformationWeek, (15), 5. Retrieved February 2, 2013, from LINCCWeb database.

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Huth, A. & Cebula, J. (2011). The basics of cloud computing. Retrieved February 2, 2013, from http://www.us-cert.gov/reading_room/USCERT-CloudComputingHuthCebula.pdf Williams, B. (2012). The economics of cloud computing. Indianapolis, IN: Cisco Press.

THE CLOUD: THE FUTURE OF BUSINESS COMPUTING Reflection I chose cloud computing as my research topic because it is a growing trend in business

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communication. Most every company conducts business in the cloud. Working in the IT field, I have witnessed the growth of cloud technology and its influence in the business world. My career in IT began in 1997. I was part of a project to replace dumb terminals with actual computer systems. Business email communication at this time was achieved through a mainframe environment. The transition to the Microsoft Outlook email client came much later. Over the years I have witnessed rapid advances in technology change the way we communicate and conduct business. I must say that writing this paper brought back memories of the days before email, high speed Internet, and mobile computing. We really have it easy in this day and age. Business communication is so much more advanced than ten years ago. Working as an IT tech for 15 years, I am familiar with the cloud and basic cloud services. Research for this paper allowed me to understand more in depth how cloud services actually operate. I enjoyed learning about the types of cloud environments and services offered through different providers. I found it interesting that so many organizations are already using the cloud. This research allowed me to become more knowledgeable and informed in this area of technology. I believe that cloud services will play a major roll in my future as a computer technician. Most everyone communicates on a daily basis through some type of technology. Understanding how this communication process works in the cloud from start to finish will help me troubleshoot technical issues, better inform my clients, and protect them from vulnerabilities. Overall I feel this was a very informative topic. I look forward to using this knowledge in the future to provide quality customer service and technical support to my clients.