Advantage and Disadvantage of Cloud Computing for Business Literature Review
As the technology is evolving day by day, therefore the organizations need to make their step forward with the technology in order to enhance their productivity. According to Dinhet al. (2013), one of the recent technologies that have come up in the market is the cloud technology. The cloud computing technology also enhances the performance of the business organization in terms of their functionalities.
The primary aim of this study is to evaluate the importance of the cloud based computing technology for the different business organizations. In addition to that, the study aims to satisfy the advantage and disadvantage of the cloud platform for the different business organizations. In addition to that, the study also defines the different areas that are related to the cloud computing technology. Moreover, the study also defines the aspects that how the business organizations can use the cloud technology in order to enhance their organizational performance.
Concept of cloud computing
Cloud computing is considered as a computing infrastructure and software model that mainly enables the user to have access to the shared computer networks along with the servers and the different storage applications. Hashemet al. (2015) said that, this can be done over the internet platform. In addition to that, the cloud computing also allows the different users and the organizations to store their data set in a privately owned cloud or to a third party server that is located in the data center. The cloud platform is basically used for sharing the resources that can achieve the economic stability. In addition to that, the cloud platform provides the business organizations to manage their different computing related resources online (Rittinghouse and Ransome, 2016).
The concept of cloud computing has evolved in current years and it can be used in order to describe the use of a third party for the storage and the different needs for computing the business organizations. According to Aroraet al. (2013), the term ‘cloud’ refers to the internet platform and the different operations in the cloud platform mainly describes the different ways through which the organizations can store and access their data set over the internet connection. Along with that, the cloud computing technology allows the business organizations to access their important set of information virtually by generating a flexible and global way through which the organizations can easily access the data at any place or any time.
Liet al. (2013) said that, there are different types of cloud services that the organizations can enjoy after implementing the cloud computing technology. One of them is the cloud storage. It mainly stores the different files and makes a backup of those files for sharing those resources to the other systems. In addition to that, cloud backup is another type that is quite similar to the cloud storage. It mainly creates a proper backup of the data set of an organization that may be hampered from the different cyber attacks. In addition to that, the organization may also use another type of cloud service that is the Software as a Service. According to Weiet al. (2014), the different applications that use the SaaS are Sales force, Office365. The business organizations can use those applications in order to enhance their overall business performance.
Advantage of cloud computing for business organizations
There are ample amounts of advantages of the cloud platform when it comes to the different business operations. These are described below.
- Fresh software: With the help of SaaS, the different latest versions of the applications required to run the business organization are made available to all the clients as soon as they are released in the global market. The upgrades in the applications provide new and innovative features to the system and make the entire environment more productive (Xiao et al. 2013).
- Better performance: By using the cloud platform, the organizations are able to reduce their own data size. Along with that, it also reduces the number of servers along with the cost of the software and the number of employees. All this together reduces the overall cost and generates a proper service to their clients.
- Efficiency regarding cost: The cost regarding the cloud platform is much flexible than the traditional storage methods. The organizations only need to pay for the servers and the infrastructure. On the other hand, according to Rahimiet al. (2014), the traditional settings require the organizations to buy different equipments in order to store their data. Therefore, it can be said that the cloud platform is very much flexible towards cost factor.
- Reliability and security: Most of the cloud service providers are very much reliable while providing their service to the clients. The connections are on 24/7 and the employees of organization can have the access to the cloud platform and to the cloud applications until they have an internet access. Rittinghouse and Ransome (2016) said that, along with the reliability, the cloud platform could also provide an ample amount of security features to the different applications. Additionally, the data set stored in the cloud platform is also safe than it is in the traditional database.
- Mobility: The cloud-computing platform enables the users to access the technology irrespective of the place. The use of smart phones along with the tablets makes the user to access the cloud applications.
- Improved collaboration: The cloud applications also make the users able to improve their collaboration by allowing the different groups of employees to meet virtually. Along with that, according to Dinhet al. (2013), they can also share the different resources and important set of information through the shared storage service of the cloud applications. This particular ability of the cloud platform reduces the time of performance and enhances the product development along with the customer service.
- Effectiveness: This particular platform is very much effective in terms of its operation. The organization that uses the cloud platform mainly enhances the usability of the different resources. In addition to that, the cloud platform also enhances the communication in between the organization in terms of their application development and maintenance of those applications.
Disadvantages of cloud computing for business
Although it is noted that cloud computing has many benefits that helps organization in reduction of cost implications as well as concentrate in core business activities, there are certain disadvantages that hinders the day-to-day operations of a business (Abdollahzadegan et al. 2013). They are listed as below:
- Down time: This is a major disadvantage of cloud computing. Notably, the cloud provider does not claim immunity to the service provided and this tends to create certain difficulties for the organization in peak hours. Evidently, any cloud computing system is based on the internet. Thus, the availability of the internet connection tends to play a pivotal role in successful working of the system. In absence of internet connection, the cloud computing system cannot be accessed and hinders the business operations (Avram, 2014).
- Privacy and security issues: Another major issue in usage of cloud computing system is that of security and privacy issues. The data and information that the organizations tend to deal with on a daily basis are sensitive and confidential. Breach of confidential information is a biggest threat to organization in this regards. Any information on the internet may be accessed by anyone at any given time (Garg et al. 2013). Thus, organizations need to exercise extra care while dealing with this information.
- Vulnerability: As discussed in the previous section, any information in the cloud can be accessed from the internet. Thus, the organizations using cloud-computing system are at constant threat of cyber attacks and theft of potential information as well. In such situation, the day-to-day operations of the business get affected significantly and may even incur losses. In this regard, the management of the organization needs to identify the possibility of such risks and formulate measures before hand in order to eliminate the risks (Gupta et al. 2013).
- Cost implications involved: Evidently, the installation of the cloud computing system is costly and this tends to provide difficulties for small and medium enterprises to access the cloud system. It is noted that, even when dealing with small-scale projects, the cloud computing system tends to be pricey. Another factor is that, if the system is not properly used it may be damaged. The repairs and the maintenance costs tends to increase the overall cost implications of the organization (Hsu et al. 2014).
- Platform dependencies: The implicit dependencies of the cloud computing system also known as “the vendor lock-in”, is a significant drawback of the system. The system provided by the vendor may not be compatible with that of the organization. This tends to increase the platform dependencies for the organization, as they need to work in accordance with available system. This result in limited control and less flexibility in the hand of the organization while using the system (Gupta et al. 2013).
Importance of cloud computing for business organizations
In Light of the growing complexities in the global business community, the need for technological advancement has increased significantly. The buzz for cloud computing as the latest technological advancement has been a much-discussed topic in the business community. The cloud computing system acts as a utility model used by small as well as large organizations in order to host their data processes, applications and processes related to internet, etc. Notably, the cloud computing system ensures convenience and on-demand internet access to organizations through a shared network of computing resources that are configurable (Oliveira et al. 2014). With the advent of the cloud computing system, organizations are now able to log in to system and access the internet from anywhere and at any point of time. The importance of the cloud computing system to a business organization is listed as below:
- Flexibility in work practices: It is noted that the cloud computing system tends to provide the employees of organization flexibility in their day-to-day work. For example, it allows the employees to get access to the system from anywhere, i.e., either from home or from office (Avram, 2014).
- Scalability: It is noted that the business operations may scale up and down according to situations and the storage system needed to store every data as quickly as possible. The cloud computing facilities this option to the organizations and helps them in their business operations.
- Lower cost implications of the IT: Notably, the maintenance cost of the IT tends to be very high and increases the total cost implications of the organization. The installation of the cloud computing system tends to reduce the overall cost implications of the IT and thereby of the organizations (Pearson, 2013).
- Workforce efficiency: It is evident that, the cloud computing systems facilitates the business organization with better communication facilities as compared to the conventional methods. The system enables easy sharing of files and other bracers with the server. This enhances the level of efficiency within the organization (Pearson, 2013).
- Access to auto-updates: One of the significant features of the cloud computing system is that it tends to provide up gradation of the system automatically unlike the conventional IT systems. In the conventional methods, the users had to install manually the available updates.
In light of the discussion made above, it can be established that, cloud-computing system has come to become an integral part of the modern day business. It is noted that, the cloud computing system tends to set up a virtual system that not only help the organization but its employees as well in maintaining flexibility in work. Evidently, through the cloud an individual can connect to the server and access internet almost from anywhere and at any point of time.
With the increase in the amount of data and information in business organizations as well as the growing number of web enabled devices, cloud based system had provided the businesses with the much needed boost to survive and sustain in the market. Although it is noticed that, there are certain limitations and shortcomings to the system, if used in a proper manner, the cloud-based system can act as one of the pillars of success of an organization.