CASE STUDY: IS IT TIME FOR CLOUD COMPUTING?

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QUESTIONS 1:
What business benefits do cloud computing services provide? What problems do they solve?
Cloud computing with many business benefits used virtually is a system in which software programs and applications are accessed through an Internet connection. Some benefits that cloud computing could provide are that it is very affordable, the cloud service providers handle all of the maintenance and upkeep of IT infrastructures by themselves and they also help business access business software as well as applications when and where they need them but smaller companies don’t have to build their own database, and more people can use the same product at once. By doing cloud computing, enterprises can easily scale up or down to meet their changing needs and just pays for exactly what they use. With the development of society, more and more multinational companies are using the cloud, not only because of cost savings but because people worldwide can access the cloud, provided they have an Internet connection. Cloud providers offer best-in-breed IT infrastructure by solving problems such as:
-Large data storage so it can store large amounts of data and information thus help build a large database improving work efficiency.
-Large management issues and makes retrieval of information more quick and efficient
-Decrease operational issues by utilizing standard services on the internet so cloud solutions are agile.

  1. What are the disadvantages of cloud computing?
 While cloud computing can be convenient for many businesses, it does have its drawbacks,  two major disadvantages are security and reliability which in this case along with responsibility and availability of your information, there is also the security risks that come with having sensitive information online in which the major security risk for your information is a data breach via hacking so if your information is remotely accessed by an unauthorized person, it can be copied and/or sold to anyone willing to pay for the secure information and also without the internet, offline services, a user with cloud computing will experience downtime hence for this reason,
Amazon’s cloud service had shown significant outages 2 years in a row that caused serious consequences.There are several disadvantages of using a cloud computing which are:
-The service fee is more expensive compared to having our own IT department to run the cloud computing.
– There will be unexpected costs if suddenly the system goes down so there will be an extra charge to solve that problem.
-Without an internet connection, possible downtime will occur as the cloud computing depends on internet connection. If the internet in your company is not strong enough, cloud computing is not recommended.
-Cloud computing services lack support or don’t have a good customer service system as it is very difficult to be reached on the telephone or an email and so consumers can only just rely on FAQ pages.
  1. How do the concepts of capacity planning, scalability, and TCO apply to this case? Apply these concepts both to Amazon and to subscribers of its services
Capacity planning needs to be insured by each business to ensure the allocation of adequate hardware services at the time of saturation. Amazon always has high level of requests for its hardware resource from its current and expected outcomes hence they must plan its future needs capable of providing sufficient computing power for both AWS and its online retail services for smooth running of its operations, a lack of which will result in the aforementioned rejection by subscribers.
Scalability is related to capacity planning which ensures the availability of services to a large number of online users on the Amazon online retail store. Amazon has organized resources to meet an exponentially increasing amount of customers. 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.
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. Amazon and its customer require a large database to store a variety of data and information to help the company grow and must bear the total TCO of its services while maintaining the profitability of the company. However, the services’ subscribers benefit from not having to worry about these issues.
  1. What kinds of businesses are most likely to benefit from using cloud computing? Why?
Businesses that are most likely to benefit from using cloud computing are large enterprises such as car dealers, warehouse sellers, online businesses such as Lazada, Zalora, and Zynga is also a good example as well as many other business-oriented companies that has large customer demands and use cloud computing to improve their business in a new way for reasons like:
  • More cost-effective
  • Prevention of data loss
  • Easier to track employee performance from time to time
  • Application for customer relationship management and using the software as a service
  • Online and collaborative business

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