Assignment on

Benefits of cloud computing

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Management Information System
(MIS 501)
Sec: 3

Prepared For:
Assistant Prof. Rezwanul Alam

Dept. of Business Administration

East West University

Prepared By:
Monir Hossain

ID: 2014-2-95-025

Day of submission:18thAugust, 2015

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Introduction :

Cloud computing is computing based on the internet. Where in the past, people would run applications or
programs from software downloaded on a physical computer or server in their building, cloud computing
allows people access the same kinds of applications through the internet. It is a solution growing in
popularity, especially amongst SMEs.

Cloud computing is now developing like never before, with companies of all shapes and sizes adapting to
this new technology. Industry experts believe that this trend will only continue to grow and develop even
further in the coming few years. While cloud computing is undoubtedly beneficial for mid-size to large
companies, it is not without its downsides, especially for smaller businesses. We now bring you a list of
advantages of disadvantages of cloud computing, with a view to helping such establishments fully
understand the concept of cloud.

Cloud computing is storing and accessing data and programs over the Internet instead of computer's hard
drive. The cloud computing is just a symbol for the Internet. It goes back to the days of flowcharts and
presentations that would represent the huge server-farm infrastructure of the Internet as nothing but a
puffy, white cumulonimbus cloud, accepting connections and doling out information as it floats.

A model for delivering information technology services in which resources are retrieved from the internet
through web-based tools and applications, rather than a direct connection to a server. Data and software
packages are stored in servers. However, cloud computing structure allows access to information as long
as an electronic device has access to the web. This type of system allows employees to work remotely.

Cloud computing is so named because the information being accessed is found in the "clouds", and does
not require a user to be in a specific place to gain access to it. Companies may find that cloud computing
allows them to reduce the cost of information management, since they are not required to own their own
servers and can use capacity leased from third parties. Additionally, the cloud-like structure allows
companies to upgrade software more quickly.

Definition of cloud computing

Cloud computing is a model for enabling everywhere network access to a shared pool of configurable
computing resources. (e.g., networks, servers, storage, applications, and services) that can be rapidly
provisioned and released with minimal management effort or service provider interaction.

Cloud computing and storage solutions provide users and enterprises with various capabilities to store and
process their data in third-party data centers It relies on sharing of resources to achieve coherence and
economies of scale, similar to a utility (like the electricity grid) over a network. At the foundation of
cloud computing is the broader concept of converged infrastructure and shared services.

Cloud computing, or in simpler shorthand just "the cloud", also focuses on maximizing the effectiveness
of the shared resources. Cloud resources are usually not only shared by multiple users but are also
dynamically reallocated per demand. This can work for allocating resources to users. For example, a
cloud computer facility that serves Bangladeshi users during Bangladeshi business hours with a specific
application (e.g., email) may reallocate the same resources to serve North American users during North
America's business hours with a different application (e.g., a web server). This approach should maximize
the use of computing power thus reducing environmental damage as well since less power, air
conditioning, rack space, etc. are required for a variety of functions. With cloud computing, multiple users

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can access a single server to retrieve and update their data without purchasing licenses for different
applications.

How does cloud computing work ?

Cloud computing has been changing how most people use the web and how they store their files. It’s the
structure that runs sites like Facebook, Amazon and Twitter and the core that allows us to take advantage
of services like Google Docs and Gmail. But how does it work?

Before we dig further into how does cloud computing work, first let’s understand what the term “cloud“•
refers to. The concept of the cloud has been around for a long time in many different incarnations in the
business world. It mostly means a grid of computers serving as a service-oriented architecture to deliver
software and data. Most websites and server-based applications run on particular computers or servers.
What differentiates the cloud from the way those are set up is that the cloud utilizes the resources from
the computers as a collective virtual computer, where the applications can run independently from
particular computer or server configurations. They are basically floating around in a “cloud of
resources”•, making the hardware less important to how the applications work.

With broadband internet, the need to have the software run on your computer or on a company’s site is
becoming less and less essential. A lot of the software that people use nowadays are completely web-
based. The cloud takes advantage of that to bring it to the next level.

For example, if you are hosting your website on a local server or from your PC, you must usually select a
particular operating system (Windows/ Linux/Mac), to determine what software you can run on that
particular server. If your site is being hosted in the cloud, there is no need to do that. You can run
Windows and Linux programs side by side.

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Types of Cloud Computing

There are mainly four models of cloud computing:

 Infrastructure as a Service (IaaS)

Let’s discuss those in more detail.

Infrastructure as a Service (IaaS) :

This is the most basic cloud-service model, which provides the user with virtual infrastructure, for
example servers and data storage space. The capability provided to the consumer is to provision
processing, storage, networks, and other fundamental computing resources where the
consumer is able to deploy and run arbitrary software, which can include operating
systems and applications. The consumer does not manage or control the underlying cloud
infrastructure but has control over operating systems, storage, and deployed applications;
and possibly limited control of select networking components (e.g., host firewalls).

Platform as a Service (PaaS) :

In this model, cloud providers deliver to the user development environment services where the user can
develop and run in-house built applications. The services include an operating system, a programming
language execution environment, databases and web servers. The consumer does not manage or control
the underlying cloud infrastructure including network, servers, operating systems, or storage, but has
control over the deployed applications and possibly configuration settings for the application-hosting
environment.

Software as a Service (SaaS) :

The capability provided to the consumer is to use the provider’s applications running on a cloud
infrastructure . The applications are accessible from various client devices through either a thin client
interface, such as a web browser (e.g., web-based email), or a program interface. The consumer does not
manage or control the underlying cloud infrastructure including network, servers, operating systems,
storage, or even individual application capabilities, with the possible exception of limited user specific
application configuration settings.

Network as a Service (Naas) :

The is common model, where the user is provided with network connectivity services, such as VPN and
bandwidth on demand.

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Benefits of Cloud Computing :

Cloud computing offers many Benefit both to end users and businesses of all sizes . It allows to set up
what is essentially a virtual office to give the flexibility of connecting to your business anywhere, any
time. With the growing number of web-enabled devices used in today's business environment (e.g. smart
phones, tablets), access to your data is even easier. Let’s visit some of the most important advantages of
cloud computing and discuss them in more detail.

Worldwide Access:

Once you register in the cloud computing , you can access the information from any device in any part of
the world. For businesses, this means that employees can work from home or on business trips, without
having to carry around documents. This increases productivity and allows faster exchange of information.
Employees can also work on the same document without having to be in the same place.

Almost Unlimited Storage:

Storing information in the cloud computing gives you almost unlimited storage capacity. Hence, you no
more need to worry about running out of storage space or increasing your current storage space
availability . Cloud computing provides increased storage, so you won’t have to worry about running out
of space on your hard drive. In the past, memory was limited by the particular device in question. If you
ran out of memory, you would need a USB drive to backup your current device.

Reduced Cost :

Cloud computing is inexpensive. The software is already installed online, so you won’t need to install it
yourself. There are numerous cloud computing applications available for free, such as Dropbox, and
increasing storage size and memory is affordable. The cloud, on the other hand, is available at much
cheaper rates and hence, can significantly lower the company’s IT expenses. Besides, there are many one-
time-payment, pay-as-you-go and other scalable options available, which makes it very reasonable for the
company in question.

Backup and Recovery :

If your data is stored in the cloud computing, backing it up and restoring the same is relatively much
easier than storing the same on a physical device. Furthermore, most cloud service providers are usually
competent enough to handle recovery of information. The process of backing up and recovering data is
simplified since those now reside on the cloud and not on a physical device. The various cloud providers
offer reliable and flexible backup/recovery solutions. In some cases, the cloud itself is used solely as a
backup repository of the data located in local computers.

Flexibility:

Cloud computing allows users to switch applications easily and quickly, using the one that suits their
needs best. However, migrating data between applications can be an issue. In fact, this flexibility is so
crucial , because "InformationWeek survey said “the ability to quickly meet business demands” was an
important reason to move to cloud computing.

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Automatic Software Integration:

In the cloud computing, software integration is usually something that occurs automatically. This means
that you do not need to take additional efforts to customize and integrate your applications as per your
preferences. This aspect usually takes care of itself. Not only that, cloud computing allows you to
customize your options with great ease. Hence, you can handpick just those services and software
applications that you think will best suit your particular enterprise.

Security :

Cloud computing offer their services to a large number of businesses and companies, it is easier and
more economical for them to make sure that their system is 100% secure from hackers, accidents, and
bugs. They can easily afford all types of defensive measures like filtering, patch management, and
cryptography techniques. And keep in mind that it truly is in their best interest to protect your data and
maintain you as a long term customer.

Document control :

Cloud computing keeps all the document in one central location, and everyone works off of one central
copy. Employees can even chat to each other whilst making changes together. This whole process makes
collaboration stronger, which increases efficiency and improves a company’s bottom line. If a company
doesn’t use the cloud, workers have to send files back and forth over email, meaning only one person can
work on a file at a time and the same document has tones of names and formats.

Resiliency and Redundancy :

A cloud deployment is usually built on a robust architecture thus providing resiliency and redundancy to
its users. The cloud offers automatic failover between hardware platforms out of the box, while disaster
recovery services are also often included.

Scalability and Performance :

Scalability is a built-in feature for cloud deployments. Cloud instances are deployed automatically only
when needed and as a result, you pay only for the applications and data storage you need. Hand in hand,
also comes elasticity, since clouds can be scaled to meet your changing IT system demands.

Regarding performance, the systems utilize distributed architectures which offer excellent speed of
computations. Again, it is the provider’s responsibility to ensure that your services run on cutting edge
machinery. Instances can be added instantly for improved performance and customers have access to the
total resources of the cloud’s core hardware via their dashboards.

Always-on availability

Most cloud providers are extremely reliable in providing their services, with many maintaining 99.99%
uptime. The connection is always on and as long as workers have an Internet connection, they can get to
the applications they need from practically anywhere. Some applications even work off-line.

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Management control

Cloud-based applications enable managers to better monitor and manage what’s going on in their
company and with their employees. Because managers can access information that their employees are
working on, they can manage and evaluate the work much quicker and more efficiently. Also, Cloud
based applications make it much easier to extract the right information at the right time. Cloud computing
allows for greater business visibility and transparency.

Quick Deployment :

Lastly and most importantly, cloud computing gives you the advantage of quick deployment. Once you
opt for this method of functioning, your entire system can be fully functional in a matter of a few minutes.
Of course, the amount of time taken here will depend on the exact kind of technology that you need for
your business.

Conclusion:

Cloud computing is a relatively new technology that will only become more widespread. It offers many
advantages that could immediately benefit you and your business – be aware, however, that initial
developments come with frequent drawbacks. If you wait a while, the service will likely develop more
fully as problems are ironed out. Plus, cost will go down as more people adopt the technology, which is
great news for any frugal-minded businessperson. Cloud computing is fast evolving from a future solution
into a viable alternative for many small to medium-sized businesses. For a growing business, one of the
most difficult things to do is keep capital expenditures under control. By leveraging virtualization
technology with Desktop Virtualization, and economies of scale, Cloud Computing is a way to access
enterprise-grade IT that would otherwise be too costly to purchase and maintain.

Cloud applications are typically much more user friendly, greatly reducing employee training time and
improving a company’s bottom-line. As well, The Cloud allows much greater collaboration between
employees allowing multiple users to share and work on data and document at the same time.