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Running head: CLOUD COMPUTING 0

Cloud Computing

Intro Management Information Systems

April 05, 2020

Cloud Computing

Introduction

Technology is evolving at a tremendous rate during the 21st century. The technology that seems new today might be obsolete in a short period. This is due to the constant changes that occur in the industries, and the need to have better ways to counter such changes and challenges. Cloud computing is one of the emerging and fast-growing technologies that most organizations are implementing. This paper will examine the real-world applications of cloud computing, the type of organizations that reap most benefits most from cloud computing, and the business problem cloud computing addresses. The paper will pay much focus on how cloud computing can help organizations achieve operational excellence, create new products and services, raise the revenues of the organization, attain competitive advantage, ensure the survival of the business, among other benefits to the organization.

Business Problem Cloud Computing Addresses

Businesses are evolving at a fast rate. The increase in the number of mobile devices and smartphones accessing the internet has fueled the need to adopt faster mainstream technologies rather than any other technology. This creates the need to have the software installed on mobile devices and smartphones to access services on the go. One of the issues that arise id the issue of lack of adequate storage and accessibility. Cloud computing provides users including individuals and organizations with the ability to run the software programs without installing them. Therefore, cloud computing helps to address the issue of storage and accessibility challenges that may affect an organization and individuals.

Real-World Applications of Cloud Computing

Cloud computing has many applications by both individuals and organizations. Some of the common real-world applications of cloud computing include:

Cloud computing is used in real life in offering backup and recovery services to individuals and organizations. According to Singh and Chana (2016), cloud computing is used to offer data storage where the responsibility of storing the data lies with the service provider. Cloud data storage in cloud computing can help organizations and individuals save capital costs they could incur in purchasing, setting up, and maintaining data centers. The cloud computing service providers are entitled to meet the legal and compliance requirements while securing the data. Customers enjoy the flexibility and large storage in addition to on-demand backups with faster recovery over a network (Singh & Chana, 2016). Examples of major cloud service providers that have adopted the ability of cloud computing to offer cloud storage services include Google Drive, Dropbox, and Amazon S3. These cloud backup solutions have adopted cloud computing to offer cloud storage services to individuals and organizations.

Streaming service providers have adopted to use cloud computing due to the scalability that cloud computing provides. According to Rittinghouse and Ransome (2016), cloud computing offers scalable resources by availing various subscription needs to suit the needs of the individual or organization. This allows individuals and organizations and individuals to pay for resources that they use. For example, Netflix uses cloud computing to address the on-demand streaming services especially during peak hours when surges in the servers are high. This has allowed Netflix and other streaming services providers to increase their customer base without the need for setting up and maintaining costly infrastructure.

Companies are also continually adopting cloud computing services on offering assistance to customers. Due to the high computing power, intelligent bots are used to offer assistance to customers visiting a website. Intelligent bots are used to store user preferences which can be used to offer a customized experience to the customers. The most common bot is the one used by Google known as Google Assistant. Google Assistant is a cloud-based natural language intelligent bot used by Google to leverage the computing capabilities of the cloud (Narman et al., 2017). Google and other companies that have adopted to use intelligent bots are able to offer personalized context-relevant user experiences. Other common bots used widely include Alexa and Siri. Cloud computing is thus used to help in intelligent bots to offer personalized customer experiences based on the preferences of the users.

Type of Organizations Benefits most from Cloud Computing

Small and medium enterprises were among the first to adopt cloud computing. Small and medium companies require cloud computing services so that they can utilize world-class infrastructure without necessarily purchasing all the expensive hardware and hiring a large number of support teams (Pikhart, 2018). Cloud computing offers pay-per-use service which gives small and medium businesses the flexibility and agility to grow as quickly as possible when demand increases. Small and medium businesses and startup companies are also capable of avoiding sunken costs due to the ability to reduce capacity. Companies offering financial services should also embrace cloud computing. This is because cloud computing allows such companies to improve efficiency and agility. Finally, governments could also be a greater beneficiary of cloud computing. IBM (n.d) writes that governments can use cloud computing to create projections of cloud environments that stimulate economic activities in specific regions. For example, IBM created a cloud computing center in Wuxi, China, that was funded by the government. This move helped the government to promote economic growth and foster innovation of local software.

Benefits of Cloud Computing

Operational Excellence

Organizations are able to achieve operational excellence from adopting cloud computing. This is made possible due to the higher levels of productivity and efficiency from using cloud computing. The organization does not have to invest its time and resources in setting up and maintaining infrastructure. Instead, the cloud service provider is mandated to handle the regulatory and compliance issues that might emanate from the data storage (Das & Suklabaidya, 2017). This increases the operational excellence of the organization by boosting the productivity and efficiency of the organization and its employees.

Create New Products and Services

The change to embrace cloud computing has changed the way products are designed. Of late, there has been a well-developed collaboration between business units like sales and finance and the IT department (Das & Suklabaidya, 2017). Customers are involved more leading to increased customer interaction. Organizations are then able to collect information from users regarding their preferences. This can lead to the joint development of new products and services between the consumers and the business

Raise the revenues of the organization

Loud computing could play a vital role in increasing the revenues of an organization. Saini, Upadhyaya, and Khandelwal (2019) posit that companies that have implemented cloud computing make it easy for the company's data is accessed securely. This is a vital step in saving costs and time that could be used to travel to the company's physical location to access the same data. The business does not need to purchase any physical hardware components, which helps the company save costs. Costs are also saved as the organization may not have to hire and train personnel for maintaining the hardware as the cloud service buys and maintains the equipment used. This helps increase the revenue for the organization that has implemented cloud computing.

Attain competitive advantage

Cloud computing also plays a major step in ensuring that companies attain a competitive edge over others. According to Kim and Kim (2016), cloud computing offers more benefits to companies that have chosen to implement the technology when compared to companies that do not use cloud computing. Companies that have cloud computing enjoy world-class enterprise technology. This is likely to draw more customers to such companies. Besides, the company that has adopted cloud computing will be more efficient, more secure, reduced costs, and scalable. These factors help an organization implementing cloud computing to attain a competitive advantage over those that do not.

Ensure the survival of the business

Businesses that need current and up-to-date data definitely require to implement cloud computing. Cloud computing offers data backup and recovery which can be used to ensure the continuity of businesses whenever there is a data breach and the current data held by the company seems to be compromised or is unavailable. For example, when data is unavailable due to natural disasters or data security breaches, a company that uses cloud computing could easily restore data previously backed up to the cloud to ensure the critical business functions resume as soon as possible. Cloud computing could thus ensure the survival of the business.

Conclusion

In summary, cloud computing is one of the latest technologies that are revolutionizing all industries around the world. Cloud computing can be used to address the issue of mass data storage and ensuring accessibility to data at all times. Some real-world examples of the applications of cloud computing include data backup and recovery, streaming, and customer service. Virtually all organizations are likely to benefit from cloud computing, either at the moment or later in their operations. Cloud computing could lead to operational excellence, creation of new products and services, raise the revenues of the organizations, attain a competitive edge, and ensure the business to ensure its survival.

References

Das, B., & Suklabaidya, M. (2017). Benefits of Cloud Computing as an ICT Tool in Distance Education‖. International Journal of Computer Trends and Technology, 48, 170-175.

IBM (n.d). Which businesses are adopting cloud computing first? Retrieved from https://www.ibm.com/blogs/cloud-computing/2011/12/23/which-businesses-are-adopting-cloud-computing-first/ on April 4, 2020.

Kim, J., & Kim, Y. (2016). Benefits of cloud computing adoption for smart grid security from a security perspective. The Journal of Supercomputing, 72(9), 3522-3534.

Narman, H. S., Hossain, M. S., Atiquzzaman, M., & Shen, H. (2017). Scheduling the internet of things applications in cloud computing. Annals of Telecommunications, 72(1-2), 79-93.

Pikhart, M. (2018). The Use of Cloud Computing in Managing Companies and Business Communication: Security Issues for Management. In International Conference on Applied Physics, System Science and Computers (pp. 94-98). Springer, Cham.

Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud computing: implementation, management, and security. CRC press.

Saini, H., Upadhyaya, A., & Khandelwal, M. K. (2019). Benefits of Cloud Computing for Business Enterprises: A Review. Available at SSRN 3463631.

Singh, S., & Chana, I. (2016). A survey on resource scheduling in cloud computing: Issues and challenges. Journal of grid computing, 14(2), 217-264.