he effects of cloud computing and the impact it poses on organization and their IT Systems


Cloud computing is a new general purpose[NT1] Internet-based technology through which information is stored in servers and provided as a service on-demand to clients.

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Cloud computing is the management and provision of applications, information and data as a service.

Firms will be able to rent computing power (both hardware and software) and storage from a provider and to pay on demand, as they already do for other inputs as energy and electricity, the former application will affect our lifestyles, but the latter will have a profound impact in terms of cost reductions on software industry.[NT2]

According to Armbust et al. (2009) this impact will be similar to the on that impact semiconductor foundries had on the hardware industry.

Moreover, cloud computing will exert a fundamental impact on the cost structure of all the industries using hardware and software, and therefore it will have an indirect but crucial impact on their market structures.

Cloud computing has been seen as a step in the commoditization of IT investments (Carr, 2003),as the outcome of an evolution toward a utility business model in which computing capabilities are provided as a service (Rappa, 2004), as the core element of the era web.2.0,in which internet is used as a software platform (O’Reilly, 2005), or simply as an application of the generativity power of the net(Zittrain, 2007).



Using different services, cloud-computing offers more benefits than traditional computing. Cost saving, scalability, mobile storage, anytime anywhere access, better security, energy saving, environment benefits are some of benefits of the cloud computing. There is shift from traditional computing to the cloud computing and organizations and individuals are benefiting from it. There are many different cloud computing services available on affordable cost models, for example, subscription and lease based cost models. Services for example, Remote Desktop Session Host (RDSH) used for cloud desktop, Software as a Service (SaaS) used for renting software and Platform as a Service (PaaS) used to rent computing infrastructure. (Griffith, 2015).

A cloud application is an Internet-based program where some, or all, of the processing logic and data storage is processed in the cloud. The user interacts with the application via a web browser or a mobile application, and the data processing is managed by a combination of the local device and a cloud computing solution. From the user’s perspective, the cloud application behaves like a standard website, but the computing and data processing are handled by the cloud via an API (application program interface) or a hybrid of both.

Most organizations have all it major applications on the cloud but tends to forget to implement a solid protection of its data and other valuables, security is not always the responsibility of only the vendor but it is dual role; the infrastructural service provider plays their part and the other side dwells on the consumer as well. To make the system effective both Paas, Iaas and Saas has to be looked into.

To make cloud computing leverage on performance in house systems needs to be upgraded to the state of art IT Systems, improved internet connectivity (Quality of Service) thus also plays a role. Now the challenge here is Security talent shortage and increasing personnel costs.

The worldwide shortage of security professionals and the high ongoing investment necessary to train and retain qualified security staff is a very real problem for organizations everywhere. According to Cybersecurity Ventures, 3.5 million cybersecurity jobs worldwide will not be filled by 2021.

Cloud computing is more efficient, scalable and flexible than traditional computing.

These cloud computing services offer different benefits, for example, data access anytime anywhere benefits, cost saving benefits, scalability benefits, security benefits, energy saving benefits and environment benefits (Griffith, 2015).

The Platform as a Service (PaaS) can be studied further. It is rent based model offering to rent cloud infrastructure which helps vendors to attract organizations and individual for renting cloud infrastructure rather than investing to own it. Similarly, the STaaS can also be studied further. For comparing its benefits as renting storage and accessing it from anywhere and anytime offers scalability, saves cost and time which attracts organizations and individuals to move from traditional storage to cloud storage. Moreover, the Security as a Service (SeaaS) is also good candidate for further study. There is tremendous need of cloud based security applications. For example, cloud based firewall has seen tremendous demand in recent years. Future study can be conducted on other cloud computing services as well. For example, Software as a Service (SaaS), Storage as a Service (STaaS), and Infrastructure as a Service (IaaS) are some examples of other cloud computing services for conducting future study.

Why cloud computing?

Cloud computing keep cost down; since the majority of the processing power and storage is handled remotely, cloud application could reduce the cost of your infrastructure – no need to maintain your own servers- as well as the cost of supporting your application onsite.

Depending on what software you are using locally, subscribing to a similar SaaS product could drastically reduce your licensing costs as well.

Accessibility; Cloud applications are not tied to a single machine- you can access and interact with the application from wide variety of devices safely from any internet connection or source.


Cloud application have access to more computing resources than it would be feasible to have onsite. Your applications can rapidly scale without an increase in your capital costs, better yet; this scaling can be dynamic so you will only use the resources when you need them.

Standardization; when applications are hosted on trusted partners such as Google; they are guaranteed to be reliable and accessible. It also ensures that your data is safely and securely backed up remotely. Furthermore, it is easy to ensure that everyone in your organisation is working from the same version of the cloud application.

These cloud applications have several categories but because future research purposes I will consider touching on five of them namely; SaaS, IaaS, PaaS, STaaS, SeaaS.

SaaS – Software as a Service; The most common category and the one that most users are already familiar with, this is a third party cloud application where the third party not only supplies the hardware for running the application, but also the software application. Additionally, they provide complete support of the systems and the application. An excellent example of this would be Google’s G-Suite that includes Gmail, Google Drive, Google Docs, etc. Using a SaaS solution eliminates the need to buy expensive equipment, expensive licensing and they provide support for the hardware and software.

IaaS – Infrastructure as a Service; IaaS is where a third party provides the infrastructure and infrastructure support in the cloud, but the software designer supplies the middleware, the applications, and the application support. Middleware is the software between the OS and the application used to give extended features to the Operating System functions and simplify programming.

A classic example is of this is Google Compute Engine, a sub – product of the Google Cloud Platform, which allows developers access to the same infrastructure that Google uses in their products on demand to handle spikes in usage.

PaaS – Platform as a Service; PaaS is similar to IaaS, but it also includes some of the software, middleware, and operating systems. The PaaS supplier takes care of supporting the hardware and the software they provide. They also keep the software up to date; the developer provides the applications and the application support. Google App Engine, another sub – product of the Google Cloud Platform, is an example of a hosting service that can scale to the needs of the application and is the preferred solution for cloud application.

Security as a service (SECaaS or SaaS) is a business model in which a service provider integrates their security services into a corporate infrastructure on a subscription basis more cost effectively than most individuals or corporations can provide on their own, when total cost of ownership is considered.

The Cloud Security Alliance (CSA) is an organization that is dedicated to defining and raising awareness of secure cloud computing. In doing so, the CSA has defined the following categories of SECaaS tools and created a series of technical and implementation guidance documents to help businesses implement and understand SECaaS. These categories include:

· Business continuity and disaster recovery (BCDR or BC/DR)

· Continuous monitoring

· Data loss prevention (DLP)

· Email security

· Encryption

· Identity and access management (IAM)

· Intrusion management

· Network security

· Security assessment

· Security information and event management (SIEM)

· Vulnerability scanning

· Web security

A recent study of the International Data Corporation (2008) has examined the role of IT cloud services across five major product segments representing almost two-thirds of the total enterprise IT spending (excluding PC’s): business applications (SaaS), infrastructure software, application development & deployment software, servers and storage .Out of the 383 billion that firms have spent in 2008 for these IT services only 16.2 billion (4%) could be classified as cloud services.

In 2012, the total figure was expected to be at 494 billion and the cloud part was 42 billion, which would correspond to 9%of the customer spending, but also a large part of the growth in IT spending. The majority of cloud spending is and will remain allocated to business applications, with a relative increase of investment in data storage. The economic impact of cloud computing is enormous and that will always be the case.

Now, will cloud computing have an impact on business creation and employment?

Businesses thrive on the usage of internet and other IT systems to operate and day in day out, from an economic point of view, virtualization and scalability increase flexibility in companies because costs related to resource deployment can adapt properly to organisation needs at any time.

Usage – bound payment models are based on the idea that companies only pay for what they consume. It is possible to find two main models. The former subscription fees where companies pay IT services within a given period. The latter, deployment pay where payment is based on the amount of information transmitted over communication networks , or each unit of information storage, or processing unit and so on. [NT3]

Business perspective of cloud computing

The emergence of the phenomenon commonly known as cloud computing represents a fundamental change in the manner in which IT services are generated, developed, adapted, maintained, and compensated. In this type of computing – cloud computing – everything an IT system can offer as a service, in such a way that users can access the available services “in the internet cloud” without knowledge (or at least without being an expert) in management of resources that they used (Li et al. 2009, Luftman, Zadeh 2011).

The primary beneficiaries of this system and innovative technologies are the small medium enterprises, the Educations Institutions (Ercan 2010, Mircea, An- dreescu 2010, Rio-Belver, Berenguer & Gomez de Balugera 2009), Organizations engaged in Scientific Research and of course large companies.

From a business stand, point this new cooperative, collaborative, and social work system with shared services will result in business management of the same manner, making it more shared and participatory, at the same time reducing information system costs. It will reduce the costs of resources and increase aspects of globalization (Mohammed, Altman & Hwang 2010).

Cloud computing can offer several advantages to organizations be it small or large. The main advantages can be divided into three types: strategic, technical and economic advantages.

Strategic advantages such as productivity improvement. Increasingly, there is a need of teamwork. All digitized service infrastructure must be accessible anytime, at any device, at any connection and from any place at a reasonable and affordable price. In principle, it is what we expect from the internet, but in reality, it sets a number of demands. These demands relates both to the physical infrastructure and to the various aspects of the usability of the provided services. Services must be available seamlessly at any device and anywhere (Kloch, Petersen & Maddsen 2011). This increases the flexibility of the company and therefore the productivity of their employees. Another strategic benefit lies in Outsourcing IT service. The central motives for outsourcing decisions are still mainly economic benefits, in particularly flexibility of costs and cost savings, technological advantages, innovation, strategic aims, and business-oriented advantages, such as an increasing service quality or an increasing flexibility of the business (Bohm et al. 2011). One of the most obvious strategic advantages is the development of new business ideas, products and services. Businesses can carry out new business ideas that would be impossible before because the fact that time and costs associated with software and hardware requirements were too high. However, nowadays IT service providers are who assume these kinds of costs. The barriers to entry for a particular market or market segment for a startup company have been dramatically reduced and cloud computing may tipped the balance of strategic advantage away from the large established corporations towards much smaller or startup companies.

Technical advantages such as flexibility, companies only use the IT services they need at every moment. Companies do not have to be concerned about great costs in IT infrastructures and wasting time on their implementation. IT service providers have duplicate systems that reduce the likelihood of loss of information or service in the event of a disaster. This is a large benefit for Small businesses, the majority of which are poorly prepared for hardware failures and disaster recovery. It can reduce downside risks at low cost (Talukder, Zimmerman & Prahalad 2010).

On the other hand, businesses should take into account the following issues; firstly, security and privacy. How to ensure security, how to make access control, the data backup process, what happens when there is a data loss, it is meeting the data protection law. Secondly, availability, what happens if there is a loss of internet connection, and finally, standardization, it would be possible a quick and easy change to another provider.

Information security and data security is now a core component in every organisation, for the purpose of this research I will dwell much on how organization needs to implement security controls on levels of their IT infrastructure be it on premise and on the cloud settings.

Added Views

You could go further into detail about the business perspective of cloud computing by looking at the different industries such as education, scientific research, and others you have mentioned. This could include how these different organization have different needs and as such the different ways in which security can be implemented when using cloud computing services. Concrete examples can be used to compare these different organization so that a clearer picture is drawn for the reader. This would allow you to explore the different IT infrastructure that exist.

You can also look further into Security as a service and take it as sub heading on its on. Looking into how businesses that offer Security as a service go about providing solution to the security problems that their clients face.


[NT2]whilst paying on demand as done for input like electricity. The former will affect our lifestyle, but the latter will have a profound impact in term of cost reductions on the software industry.

[NT3]If Security is the back bone of the paper, that is to say that your thesis seeks to explore security as it is implemented in cloud computing the placement of the highlighted text should come before the previous paragraph about the lack of security experts and the security of cloud based systems implemented by organizations.


This way the introduction flows better with all the important terms being explained once they have been mentioned whiles ending the introduction with what you want the reader to concentrate on.

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