Volume 9, Issue 5, May – 2024 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAY1039

Merits and Demerits of Cloud

Computing for Business
Maduabuchukwu Augustine Onwuzurike
1
Higher National Diploma in Marketing (Federal Polytechnic Nekede, Owerri, Imo State, Nigeria)
2
Master's Degree in Business Administration (Lincoln University, Oakland, California, USA

Abstract:- In today's world, cloud computing has become similar to how electricity and water are distributed
a new way of thinking about technology that promises (Armbrust et al., 2010).
many benefits to businesses. Businesses can cut down on
capital costs, improve agility, and better use their There are three main types of service models in cloud
resources by using virtualized and scalable computing computing: Infrastructure as a Service (IaaS), Platform as a
resources provided over the Internet. Moving to the Service (PaaS), and Software as a Service (SaaS) (Mell &
Cloud, however, brings new problems and risks that Grance, 2011). IaaS offers virtualized computing resources
must be carefully considered. The article carefully like storage, networking, and processing power, which lets
considers the pros and cons of using the Cloud for businesses set up and run their operating systems and apps.
businesses from a strategic point of view. We put PaaS provides a higher abstraction level, allowing
together key benefits like lowering costs, growing, and developers to create and launch apps on cloud-based
being flexible in business by looking at literature from platforms without dealing with the infrastructure underneath.
different areas, like management, computer science, and As Tsai et al. (2010) say, SaaS is the most complete cloud
information systems. At the same time, we look at the service model because software applications are provided as
most common risks, such as security issues, being locked web-based services, so there is no need for installation or
into one vendor, following the rules, and losing control maintenance on-site. This range of service models, along
over data and systems. It also suggests a decision strategy with deployment options such as public clouds run by
that businesses can use to systematically figure out if outside service providers and private clouds hosted within an
cloud computing is a good fit for their specific operations. organization's firewall, gives businesses more freedom than
Our study adds to the body of academic knowledge by ever to change their IT infrastructure to meet changing
promoting a more complete understanding of the business needs (Subashini & Kavitha, 2011). Cloud
strategic effects of cloud computing. It also gives computing is appealing because it can ease standard IT
practitioners a strong analytical lens to help them provisioning models' financial and operational burdens. This
understand the complexities of this paradigm shift. lets businesses focus on what they do best and encourages
innovation more effectively (Khajeh-Hosseini et al., 2010).
Keywords:- Cloud Computing, Strategic Advantages, However, using the Cloud has strategic effects beyond just
Scalability, Security Risks, Vendor Lock-In, Business Agility, thinking about technology. When organizations move to
Cost Optimization, Compliance Challenges. cloud environments, they must completely change their
strategies, processes, and governance systems (Khajeh-
I. INTRODUCTION Hosseini et al., 2010). The supposed benefits of cloud
computing, like lowering costs, being flexible, and being
The rise of cloud computing has marked a significant able to grow, are appealing. Still, businesses also have to
turning point in information technology's (IT) history. Cloud deal with many risks and problems. Concerns about data
computing is an entirely new way to get computing power. security, following rules, being locked into one provider, and
It abstracts hardware, software, and data resources into losing control over essential systems and data are some of
virtualized, on-demand services provided over the Internet the main issues that could hurt the strategic value proposition
(Mell & Grance, 2011). Businesses can now get flexible, of cloud computing (Subashini & Kavitha, 2011).
utility-based IT services without spending much money
building their infrastructure (Marston et al., 2011). Industry Within this context, businesses need to look at the pros
and academia are interested in this disruptive technology and cons of cloud computing from a broad viewpoint.
because it can change how businesses work, spur innovation, Moving to the Cloud should be based on something other
and give them a competitive edge. It is possible to see how than technological needs or cost concerns. Instead, the
cloud computing fits into the more extensive history of decision should be based on a complete analysis of the
computing models, which have changed from single- strategic implications in many areas, such as operational,
computer mainframes to client-server architectures and, financial, regulatory, and security (Khajeh-Hosseini et al.,
more recently, to distributed and virtualized systems (Buyya 2012). This piece aims to give an in-depth look at the pros
et al., 2009). Cloud computing is the result of all of these and cons of using cloud computing for businesses from a
technological advances. It lets computing resources be strategic point of view. We put together a list of the main
delivered over the Internet as scalable, on-demand services, pros and cons of cloud computing by looking at research

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Volume 9, Issue 5, May – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAY1039

from fields like management, computer science, and security was still a worry, leading to an increased need for
information systems. We also suggest a decision strategy private clouds (Foote, 2021). Containers and orchestration
that businesses can use to systematically figure out if cloud platforms such as Docker and Kubernetes have simplified
computing is a good fit for their specific operations. Our cloud deployment for developers (Foote, 2021). The
study adds to the body of academic knowledge by promoting epidemic hastened the adoption of cloud services for distant
a more complete understanding of the strategic effects of work and e-commerce. In the future, automated data
cloud computing. It also gives practitioners a strong governance is expected to expand to comply with Internet
analytical lens to help them understand the complexities of regulations.
this paradigm shift.
Over the past decade, cloud computing has
II. CLOUD COMPUTING FOR BUSINESSES revolutionized how businesses operate and manage their IT
infrastructure. As Sayegh (2021) described, the Cloud has
Cloud computing originated in the 1960s when MIT empowered global enterprises and startups by providing
obtained funds from DARPA to enable numerous users to scalable and flexible computing resources without massive
access a computer concurrently, an early virtualization type capital investments. This has catalyzed innovation, allowed
(Foote, 2021). During the 1970s, virtualization evolved to rapid scaling, and created a more level playing field in the
involve the creation of virtual machines that simulate real business landscape. One of the most pivotal outcomes of
computers (Foote, 2021). During the 1990s, virtualization cloud computing has been enabling the emergence of
gained popularity as firms started providing virtual private companies that are "born in the cloud" (Sayegh, 2021).
networks as services for rent (Foote, 2021). Amazon was an Without legacy IT systems, these businesses can build their
early adopter of cloud computing in 2002 to optimize its technology stack and operations entirely in the Cloud from
computer capacity. Amazon introduced Amazon Web inception. Prominent examples like Uber and Airbnb
Services (AWS) in 2006 to provide online services like leveraged the agility and scalability of cloud platforms to
storage, computing, and human intelligence resources to grow and disrupt established industries quickly. For all types
other businesses (Foote, 2021). The same year, Google of businesses, cloud computing has brought unprecedented
introduced Google Docs services developed from Google agility and flexibility to operations and workload
Spreadsheets and Writely. This allowed users to produce, management. The ability to dynamically provision
modify, and distribute documents online (Foote, 2021). infrastructure resources based on real-time demand has
Early services emphasized the advantages for businesses of allowed organizations to respond faster to market changes
on-demand software accessed through the Internet without and opportunities. As Sayegh (2021) notes, hybrid and
requiring local program installations (Foote, 2021). In the multi-cloud approaches have given companies even more
late 2000s, open-source systems such as Eucalyptus and options to optimize performance, resilience, and costs. The
OpenNebula were developed to construct private clouds. In interplay between cloud computing and emerging
2011, hybrid clouds were introduced, enabling the transfer technologies like artificial intelligence (AI) underscores the
of workloads between private and public clouds (Foote, transformational impact of the Cloud. As shown in Figure 1,
2021). IBM, Apple, Microsoft, and Oracle launched their AI leverages massive datasets and intensive computation
cloud computing services, which raised public awareness of enabled by cloud platforms. The Cloud's unlimited storage
cloud technology at this time (Foote, 2021). In 2014, and processing power has catalyzed the rapid evolution of
fundamental cloud functionalities had advanced, although data-driven innovations.

Fig 1: The Rise of Artificial Intelligence

Source: https://www.analyticssteps.com/blogs/how-ai-revolutionizing-cloud-computing

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Volume 9, Issue 5, May – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAY1039

Quantitatively, the adoption of cloud services has billion in 2020. This rapid growth is expected to continue,
skyrocketed in recent years, as highlighted in Table 1. projecting over 40% growth from 2020 to 2022 based on
According to Gartner (2021), global spending on public current trends.
cloud services grew from $182.4 billion in 2018 to $257.5

Fig 2: Global Public Cloud Service Revenue 2018-2022

Source: Global Market Insights, https://www.gminsights.com/industry-analysis/public-cloud-market

The numerous benefits it offers are driving this surge The intrinsic scalability and agility of cloud platforms
in cloud adoption compared to traditional on-premises IT are another critical advantage. As shown in Figure 2,
infrastructure, especially for small and medium businesses companies can scale allocated resources up or down based
(SMEs). As Sayegh (2021) discussed, cloud computing on real-time demand fluctuations. This ensures optimal
provides significant cost savings in terms of capital utilization while allowing businesses to remain responsive to
expenditure on hardware/software and ongoing operating changing market conditions.
expenses for maintenance and upgrades. By leveraging
cloud services, SMEs can access advanced computing
capabilities without high upfront infrastructure investments.

Fig 3: The scalability of cloud computing allows dynamic resource allocation.

Source: MEGA International. https://www.mega.com/blog/what-is-scalability-in-cloud-computing

The rise of cloud computing over the past decade has into IT operations and workload management. As
had a tremendously disruptive impact across the business highlighted by surging adoption and spending, cloud
landscape. It has leveled the playing field between computing has revolutionized how businesses leverage
established enterprises and startups, fueled data-driven technology for competitive advantage.
innovations like AI, and introduced unprecedented agility

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Volume 9, Issue 5, May – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAY1039

These days, cloud computing is used in almost every hardware and software all at once. When Deloitte asked
business and field. Banks like JPMorgan Chase and Capital small companies why they were moving to management, and
One use cloud computing, from risk management and data customer analytics. The National Institutes of Health (NIH)
analytics to customer-facing apps like mobile and online and the UK's National Health Service (NHS) are two
banking. Cloud services have helped stores like Walmart, healthcare groups that use cloud computing to store and
Target, and Best Buy improve their e-commerce systems and process vast amounts of patient data safely. This lets them
supply chain. More and more hybrid and multi cloud models do advanced research and analytics. the Cloud, 82% said it
are being noted. It is one of the most crucial trends in Cloud was to save money (Deloitte, 2021). However, cloud
Computing. Most business runs their IT infrastructures computing has many benefits that go far beyond just saving
through public or private clouds which makes their platforms money. In today's fast-paced digital world, agility and
efficient. They do so by using several cloud providers in flexibility are essential to stand out. Businesses can quickly
order to make sure that they won’t be locked into only one add or remove computing resources, storage, and bandwidth
vendor and increase the reliability and redundancy. Also, the with cloud services to meet changing market needs (Etro,
development of AI, on the cloud, and ML services is 2009). This flexibility benefits businesses in fast-paced
becoming easier and cheaper, so businesses can now create fields like e-commerce, where workloads can vary
more and use them. However, with cloud computing significantly depending on the time of year or special events.
constantly evolving, new technologies such as edge The world COVID-19 pandemic has also shown how
computing, serverless architectures, and computing through important it is to collaborate from home. Microsoft Office
containers, will make it easier for organizations to develop 365, Google Workspace, and other cloud-based productivity
new ideas and enable better workflow. packages have become necessary for distributed teams to
work together efficiently, no matter where they are
A. Cloud Computing Advantages for the Businesses (Alawadhi et al., 2020). There has been several demands for
The then digital transition is faster thus cloud services cloud-based customer relationship management (CRM)
become an important tool that assists business entities in solutions from global companies like Salesforce. This is
being flexible, reduction of cost and finding new ways to because businesses want to improve customer interaction
enhance productivity. The world spent a total of $482 billion and streamline operations in the face of pandemic-related
on public cloud services, according to a Gartner report problems (Salesforce, 2021). Cloud computing has become
published just recently. This amount points to the increase of a critical must as companies try to figure out how to handle
21.7% in the market compared to 2021, (Gartner, 2022). The the challenges of going digital. Cloud adoption offers many
high level of popularity of cloud computing proves just how benefits, such as lower costs, greater flexibility, scale,
much the process is changing the way businesses work these teamwork, and safer data. It helps businesses stay
days. Cost-efficiency is the primary driving element of this competitive and respond quickly in a world market that is
model shift. Switching over to the Cloud offers companies changing swiftly (Etro, 2009; Alawadhi et al., 2020; Meena
options to get rid of standard models that require much & Wadhwa, 2021). Many companies are using cloud
capital and to implement pay-and-use strategies (Armbrust services, which shows that taking advantage of these benefits
et al., 2010). This is particularly convenient for small and is no longer a choice but a must for companies that want to
medium enterprises (SMEs) due to the fact that they can do well in the digital age.
order entropy-level hardware/software tools while paying
for them all at once. The question that Deloitte asked in its C. Data Control
study of small companies was: ‘Why are you moving to?’ Data control has emerged as a critical advantage
driving cloud adoption across industries worldwide. With
B. The Merits of Cloud Computing for Businesses modern businesses' exponential growth of data, safeguarding
Cloud services, being an integral part of digital this valuable asset has become paramount. Cloud computing
transition and being faster than ever, has helped businesses offers robust data control and security capabilities
become more flexible, cut costs, and introduce new increasingly appealing to organizations globally,
opportunities to make things work more effectively. The representing a significant evolution from traditional on-
latest study from Gartner has shown that the overall amount premises data management approaches. Before the rise of
of spending on public cloud services worldwide last year in cloud computing, data was primarily stored and managed
2022 reached $482 billion, which was a 21.7% increase since within local on-premises infrastructure, such as servers,
2021 (Gartner, 2022). The fact that the use of cloud storage devices, and backup systems. This approach
computing nowadays has become so widespread clearly presented several challenges in terms of data control and
indicates how this technology is revolutionizing the way security. Table 1 highlights some of the critical limitations
businesses are handled. Affordability stands at the crux of of traditional on-premises data management:
this paradigm change. Companies can switch from standard
models that require much capital to flexible, pay-as-you-go
pricing structures when they move to the Cloud (Armbrust
et al., 2010). This is especially helpful for small and
medium-sized businesses (SMEs) since they can use
enterprise-level computing tools without buying a lot of

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Volume 9, Issue 5, May – 2024 International Journal of Innovative Science and Research Technology
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Table 1: Demerits(Limitations) of Traditional on-Premises Data Management

Limitation Description
Single Point of Failure Data stored locally is vulnerable to hardware failures, natural disasters, or cyber-attacks that
could lead to permanent data loss.
Limited Scalability On-premises storage and compute resources have a finite capacity, making it challenging to
scale data infrastructure in response to rapid growth.
Fragmented Access Implementing granular access controls and detailed logging across multiple on-premises
Controls systems is complex and resource-intensive.
Regulatory Compliance Compliance with data protection regulations like GDPR and HIPAA is more difficult when
Challenges data is distributed across local systems.

They, to a great extent, lead businesses to a position regardless of hardware failures or local disasters at the
that they have to resort to the highly priced options such as storage site.
multitudes of storage systems, external backup facilities, and  Scalable Resources: Cloud storage and computational
manual methods of access control and reporting. This resources can be easily scaled up or down based on the
approach increased operations expenses and made it more demand, letting organizations to effortlessly handle the
difficult to maintain the same level of data protection and data increase without the limit of the fixed on-premise
security in all regions of operation. With cloud computing capacity.
data is dramatically changed as it provided safe, centralized  Advanced Security: Leading cloud providers like AWS,
and scalable computing and storage resources. Figure 1 Azure, and GCP spend a lot of money on security and
shows how cloud services have changed the way people can privacy of their user’s data, using such tools as advanced
control their data: Figure 1 shows how cloud services have encryption, strong access controls, continuous
changed the way people can control their data: monitoring and threat detection. The inherent protective
nature of these applications normally exceeds what
individual businesses could implement in their own on-
premises environments.
 Disaster Recovery: With the rapid growth of cloud-based
disaster recovery and business continuity solutions,
organizations are able to build on strategies to minimize
data loss. Another study IDC did shows that 90% of
companies have either implemented or considered
implementing cloud-based backup and disaster recovery
solutions (IDC, 2020).
 Compliance Controls: Cloud providers with fine-grained
controls, detailed logging and auditing, and data
encryption ensure that businesses keep complete control
on their data assets, guaranteeing industry regulations
compliance and protection laws.

Industry surveys and records show that these

improvements have had an effect. Thales' 2021 Cloud Data
Security report says that 40% of business data is now stored
in the Cloud, up from 36% in 2020. Also, 51% of
respondents planned to move more data to the Cloud in the
next 12 to 24 months (Thales, 2021). This trend is caused by
the idea that cloud environments are safer than standard on-
premises infrastructure. Cybersecurity Insiders polled that
Fig 3: Shift in Data Control Capabilities – 61% of companies think cloud services are safer than on-
Before and After Cloud Computing premises settings for backing up and storing data
Source; Author (Cybersecurity Insiders, 2021). Statistics from the industry
back up this view. In 2021, only 8% of data breaches
As depicted in Figure 1, cloud computing has involved cloud assets, while 92% involved on-premises
introduced several enhancements in data control compared systems (Verizon, 2022). Cloud computing has changed how
to traditional on-premises approaches: companies manage and protect their data. Cloud services
have fixed the problems with traditional on-premises data
 Centralized Storage: Cloud providers provide fault- management by offering centralized, scalable, and safe
tolerant, highly available, and reliable storage solutions computer and storage resources and robust disaster recovery
using the centralized model, to prevent a single point of and compliance tools. Industry surveys and data constantly
failure. This guarantees that data can be queried show that people think cloud environments are safer and

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easier to manage. This shows how vital data control is for flexible and must be changed easily. To prepare for expected
encouraging many businesses to use cloud computing. growth, businesses must figure out their computing needs for
a long time and spend money on gear, software, and data
D. Flexibility and Scalability center resources. This method usually ends up providing too
Many people agree that cloud computing's main many resources or not using them enough, which wastes
benefits are its flexibility and growth, two main reasons money and makes operations less efficient. When businesses
businesses worldwide use it. In today's fast-paced business use cloud computing, on the other hand, they can use a
world, being able to quickly change computing resources to flexible, pay-as-you-go approach that lets them add or
meet changing needs and smoothly scale operations has remove resources as needed. Deloitte did a survey and found
become a critical competitive edge. Recent global data and that scalability was essential to 92% of businesses when they
industry research show how important flexibility and decided to move to the Cloud (Deloitte, 2021). Table 1
scalability are as factors that lead to cloud adoption. The shows that cloud computing is more flexible and scalable
traditional approach for on-premises IT infrastructure is than standard on-premises infrastructure.

Table 2: Flexibility and Scalability Advantages of Cloud Computing

Advantage On-Premises Cloud Computing
Resource Requires substantial upfront capital investments Enables rapid provisioning of computing resources (e.g.,
Provisioning and lead times for procuring and deploying new virtual machines, storage, and networking) on-demand,
hardware and software often within minutes
Scalability Limited by physical infrastructure constraints, Allows seamless scaling of resources up or down based
making it challenging to scale resources up or on changing workload requirements, ensuring optimal
down rapidly utilization and cost efficiency
Flexibility Rigid infrastructure that is difficult and costly to Provides a flexible, software-defined infrastructure that
modify or reconfigure to accommodate can be easily reconfigured and adapted to support new
evolving business needs use cases, applications, and workloads
Pricing Model Requires significant upfront capital Follows a pay-as-you-go, consumption-based pricing
expenditures (CapEx) and ongoing operational model, aligning costs with actual resource usage and
expenses (OpEx) minimizing upfront investments

The impact of these advantages is reflected in industry and scalability as essential factors in the decision to embrace
data and adoption trends. According to a report by Markets cloud computing as a cornerstone of modern business
and Markets, the global cloud computing market size is strategies.
expected to grow from $445.3 billion in 2021 to $1,240.9
billion by 2027 at a Compound Annual Growth Rate E. More Effective Collaboration
(CAGR) of 17.9% (Markets and Markets, 2022). This rapid One of the best things about cloud computing for
growth is driven by enterprises' increasing adoption of companies is that it makes it easier for team members,
cloud-based solutions, the proliferation of cloud-native partners, and stakeholders to collaborate and share
applications, and the scalability and flexibility offered by information, no matter where they are located. Practical
cloud computing. teamwork tools have become even more critical as remote
work and distributed teams have grown. Cloud computing
Furthermore, the ability to scale computing resources has become a key enabler in this area. Recent global data,
dynamically has become particularly important in industries industry analysis, and academic studies show that cloud-
with highly variable demand patterns, such as e-commerce, based collaboration tools are helpful for businesses today.
media streaming, and online gaming. For example, during Traditional on-premises collaboration tools often needed
the COVID-19 pandemic, many businesses experienced help with security, version control, and who could see what
significant spikes in demand for online services and digital when working in different places or with outside partners.
engagement. Cloud computing enabled these organizations These problems are no longer a problem thanks to cloud
to rapidly scale their infrastructure to handle the increased computing, which offers centralized platforms and services
workloads without disrupting customer experiences or that make working together, sharing documents, and talking
incurring substantial upfront costs (Flexera, 2021). By possible in real-time, from anywhere with an internet link.
allowing rapid resource provisioning, seamless scalability, Cloud office tools like Microsoft Office 365 and Google
and a flexible, software-defined infrastructure with a pay-as- Workspace have become very popular, according to a study
you-go pricing model, cloud computing has empowered by Gartner. Between 2018 and 2022, their use will grow
organizations to optimize resource utilization, reduce 25.7% yearly (Gartner, 2022). Table 1 shows the main
operational costs, and respond agilely to dynamic market benefits of cloud-based collaboration tools over standard
conditions. Industry data and adoption trends highlight the solutions that are installed on-site.
strategic value of these advantages, positioning flexibility

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Table 3: Advantages of Cloud-Based Collaboration Tools

Advantage Traditional On-Premises Cloud-Based
Accessibility Limited to local network or VPN access Accessible from any device with an internet connection
Version Challenges in managing multiple versions of Centralized document storage with real-time updates and
Control documents version history
Security Sharing documents with external parties poses Secure sharing and granular access controls with end-to-
security risks end encryption
Scalability Limited by local infrastructure capacity Seamless scalability to accommodate growing team sizes
and data volumes
Integration Difficult to integrate with external systems and Seamless integration with other cloud services and third-
workflows party applications

Industry statistics and adoption trends show how these documents, and talk to each other in real-time. These tools
benefits have changed things. MarketsandMarkets predict are safe, easy to get, and centralized. This makes it easier to
that the global cloud collaboration market will grow at share knowledge, be productive, and connect with
17.4% per year, rising from $37.2 billion in 2020 to $97.7 customers. Industry data, adoption trends, and academic
billion by 2026. This growth is caused by more people studies show that cloud-based collaboration tools are
working from home, the need to work together in real-time, strategically valuable. This is one of the crucial factors that
and the fact that cloud communication tools are now built makes cloud computing become an essential part of modern
into more business apps. business strategies.

Scholarly study has also examined the advantages of F. Greater Accessibility

cloud-based collaboration tools for companies. Cloud The increased accessibility of cloud computing has
collaboration tools (according to a survey by Alkhaldi et al. become an important factor contributing to its widespread
(2021)) brought down the complexity for teams to work acceptance in businesses worldwide. Accessing essential
together, talk and share files and information within business apps, data, and resources from any location, at any
organizations. Cloud computing teamwork was favorable to time, and on any device is crucial in today's mobile and
project management, as per the study done by Alhammadi et remote worker environment. Cloud computing has
al. (2020), because it made the task of coordinating, checking transformed accessibility, facilitating smooth collaboration,
progress, and distributing the transition of resources more productivity, and business continuity, irrespective of
manageable. Besides making people more productive, geographical constraints. Conventional on-premises
cloud-based teamwork has been shown to make customers software and data storage solutions typically limited access
happier and more engaged. 88% of customers surveyed by to a specific place or necessitated intricate remote access
Salesforce said they expect companies to share information setups like virtual private networks (VPNs). Cloud-based
and collaborate easily across teams and channels applications and services are accessible from any location
(Salesforce, 2022). Cloud-based customer relationship with an internet connection, offering a uniform experience
management (CRM) and service platforms are critical for on various platforms such as desktops, laptops, tablets, and
companies to ensure their customers have consistent and smartphones. According to a study conducted by Flexera in
well-coordinated experiences. Therefore, better teamwork 2021, 92% of organizations utilize a multi-cloud approach,
has become one of the main reasons businesses worldwide incorporating both public and private cloud services. Table
are adopting cloud computing. Cloud-based tools let teams 1 outlines the primary accessibility benefits of cloud
that work in different places easily collaborate, share computing compared to traditional on-premises solutions.

Table 4: Accessibility Advantages of Cloud Computing

Advantage Traditional On-Premises Cloud-Based
Remote Access Limited to VPN or remote desktop solutions Native accessibility from any internet-connected device
Device Software and data tied to specific hardware or Platform-agnostic access, ensuring consistent user
Compatibility operating systems experience across devices
Mobility Restricted to on-site or VPN-connected Seamless access from any location, enabling mobile
access productivity and remote work
Scalability Limited by local infrastructure capacity Ability to scale resources dynamically to accommodate
increased access demands

The use of these accessibility benefits is apparent from offered by cloud computing are responsible for the huge
industry data and adoption rate. The Global Public Cloud acceleration. There are many scholarly works have been
Spending in 2022 was $484.6 billion, representing a 37.4% documented explaining the benefits of cloud computing for
rise from the previous year consequently, as Gartner reported businesses through its accessibility. Cloud-based
in 2023. To some large extent, these factors namely the applications significantly increased teamwork and
growing use cloud-based apps, the need for remote access collaboration as demonstrated by Alkhaldi et al. (2020)
and collaboration, and the scalability and accessibility through the easy access to the shared databases and instant

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messaging. Alharthi et al. (2015) in their study on the essential for maximizing the security features of your cloud
facilitating role of cloud computing for business services. The Cloud's infrastructure facilitates data sharing,
continuity. It ensures that the company keeps to the mode of but enterprises may need more familiarity with safeguarding
operations and is able to retrieve the critical data even in the it, leading to potential security oversights and attack
wake of disasters such as natural catastrophes or pandemics. vulnerability. Studies have demonstrated that 99% of
misconfigurations remain undetected, making them
The COVID-19 epidemic has highlighted the considerably more hazardous. It is crucial to remember that
significance of accessibility in cloud computing. Cloud- insider threats are still prevalent, with 61% of organizations
based solutions were critical in facilitating company facing 20 insider attacks annually.
continuity and allowing employees to access necessary apps
and data from home as firms quickly shifted to remote work Remote employees may feel unsupervised and be free
and online operations (Salesforce, 2020). The increased to act as they choose. Therefore, it is crucial to effectively
accessibility of cloud computing has become a critical factor monitor and control access and activity inside your cloud
in its widespread acceptance by enterprises worldwide. services to prevent insider assaults, regardless of the size of
Cloud computing allows enterprises to function successfully your organization. One must compare the data security status
in a distributed and mobile workforce environment by stored on a local server. Cloud services typically implement
offering platform-agnostic, location-independent access to biometric security measures to access data centers and have
programs, data, and resources, facilitating seamless many additional security controls. In contrast, on-premise
collaboration, mobile productivity, and business continuity. data may be left unsecured on a desk in an office corner or
Industry data, adoption patterns, and scholarly studies in a poorly protected server room. Your cloud service
continuously emphasize the strategic importance of cloud provider will employ security measures that surpass what
computing's accessibility, establishing it as a crucial element most small and medium-sized enterprises could achieve to
in adopting cloud computing as a fundamental aspect of prevent data loss incidents. Although your cloud service
contemporary corporate strategies. provider is responsible for securing the cloud infrastructure,
you still have some responsibilities for your data protection,
III. THE DEMERITS OF CLOUD COMPUTING and additional security measures may be necessary. Various
FOR BUSINESSES solutions are specifically designed for cloud service
providers to address any deficiencies in cloud security.
A. Security Begin by utilizing data loss protection technologies and
Check Point reports that 94% of organizations have a managed threat detection services. Cloud computing offers
high level of worry over cloud security (Chkadmin, 2024). easy accessibility through an internet connection, which can
When sharing valuable data with a third party, worries arise also increase the risk of unauthorized access to your data and
due to the reduced control and visibility. How can you ensure systems. Improper settings or weak password security can
your data is being safeguarded? Primary security issues result in accounts being taken over and intruders obtaining
related to cloud-based services involve misconfiguration and entry into your organization, frequently without your
data breaches. Proper configuration of security settings is awareness.

Fig 4: Cloud Computing Security Risks

Source: Veritas; https://www.veritis.com/blog/what-is-cloud-computing-security/

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B. Limited Control and Visibility PayPal, and Reddit impossible for almost an hour (Porter,
Adopting cloud services has benefits like lower costs 2021). This is an example of how businesses that use third-
and more adaptability, but some researchers say it can make party cloud technology can still experience downtime when
it harder for businesses to see and control what is happening. something goes wrong. While cloud services offer benefits
A study by T.S.H. Teo and S.C. Srivastava says that when a like growing as needed and saving money, they also come
company uses public cloud infrastructure, it "gives up direct with risks, such as brief service outages that can significantly
control over many aspects of security" to the provider (Teo affect a business. As the recent Fastly outage shows, even
& Srivastava, 2014). The business relies on the cloud big companies can have problems that make customers
provider's rules, procedures, and safety measures. Because depend on them. Maintaining dependability still needs to be
there is no direct control, it can be harder to ensure that solved for people who use the Cloud.
internal governance and business rules are followed (Teo &
Srivastava, 2014). IV. CONCLUSION

A literature study on how businesses use the Cloud Cloud computing has become a new way of thinking
showed that "the lack of transparency within the public cloud about technology that can change how businesses work. It
is an inhibitor" for many of them (Alharbi et al., 2016). The has tremendous strategic benefits and possible risks for
complicated structure of cloud platforms hides backend businesses in various fields. Cloud platforms offer inherent
layers, making it harder to see things like where data is freedom, scalability, collaboration tools, and robust data
stored. It is easier for companies to monitor and audit control that help companies cut costs, quickly develop new
processes more openly (Alharbi et al., 2016). The authors say ideas, and become more agile. Concerns about security,
that governance standards are improving, and new ways to dependability, exposure, and loss of power have also come
improve visibility through logging, alerts, and configuration up as reasons why people do not use the Cloud.
choices appear.
Because cloud infrastructure is flexible and can be
Adopting cloud services means giving up some fine- scaled up or down on demand, businesses can easily match
grained control and complete transparency, but experts stress their technology resources to their changing needs. Cloud
that it can benefit businesses. The pros of efficiency, cost computing enables you to scale up or down based on real-
savings, and freedom outweigh the cons if you research and time changes in demand because it uses a pay-as-you-go
use the available visibility tools (Teo & Srivastava, 2014). approach and does not require significant upfront
When moving apps or data to the Cloud, businesses must investments. This provides the best use while letting people
consider how much risk they are willing to take and what respond quickly to changes in the market. During the
they need. COVID-19 pandemic, businesses took advantage of the
Cloud's ability to grow as needed to handle the massive
C. Reliability increase in website traffic. One strategic benefit of cloud-
Relation could be a problem when businesses use cloud based efficiency and communication tools is that they make
computer services. Cloud services offer benefits like saving working together easier. Centralized access, seamless
money and giving you more options, but if you use an integration, granular controls, and real-time updates make it
outside provider, you give up some control and could easier for teams working in different places and outside
experience service interruptions. Recent events have brought partners to work together. This better teamwork means that
attention to the possible dependability risks. In 2020, the employees are more productive, workflows are more
Journal of Cloud Computing released a study examining the streamlined, and customers have better experiences. Studies
reliability of cloud services by looking at old data from show that the Cloud can improve the success rate of projects
Amazon Web Services (AWS), Microsoft Azure, and and the performance of organizations by making it easier for
Google Cloud. The research found that between 2 and 6 people to work together and share information. In addition,
percent of critical infrastructure services, such as computing, cloud systems often have better management and security
storage, and networking, failed annually on average across tools for data assets than on-premises environments.
all three providers from 2014 to 2019 (Alkharashi et al., Businesses can keep a closer eye on and protect private data
2020). These failure rates may not seem very high, but the better with centralized storage, flexible computing,
study authors say that "even this level of failure results in advanced security controls, and built-in disaster recovery
many hours of downtime per month" for customer facilities. By making it easier to follow industry rules, cloud
applications that depend on them (Alkharashi et al., 2020). computing lowers the chances that critical business data will
Many firms could really suffer huge losses and also tarnish be lost or seen by people who should not be able to.
their good reputations in case their cloud services encounter
outages or be down. Citing the case of AWS outage in 2017, Even with these benefits, some businesses have yet to
the company was down for several hours and this affected switch to cloud computing because they are worried about
up to 150000 websites and apps that use AWS. This included security, dependability, openness, and losing control. When
well-known services like Slack, Trello, and GitLab. It was you put sensitive data and work in a third-party cloud setting,
down for more than 4 hours and was said to have cost S&P you must give up some power to the provider. This makes
500 companies an average of $100,000 each (Brandom, people worry about hackers, outages, getting in without
2017). Fastly, a cloud services company had an outage in permission, and being unable to see where data storage is
June 2021, making accessing websites like Amazon, CNN, kept. Even though the best cloud service providers have strict

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Volume 9, Issue 5, May – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAY1039

security controls, customers often need to set them up deployment models, and governance protocols should all be
correctly, making safety less effective. Significant players spelled out in this plan.
like AWS, Microsoft Azure, and Google Cloud have had
failures that have gotten much attention. This shows how Lastly, make sure that there are strict programs for
hard it is to be reliable. So, moving business-critical data and managing change and teaching employees. Moving to the
systems to the Cloud requires carefully weighing the pros Cloud changes how the company works, how people do
and cons from more than just a cost-savings point of view. things, and how technologies are used. For a smooth change,
Cloud computing is a paradigm shift that affects how getting buy-in from stakeholders and building up their skills
businesses plan their strategies, run their operations, handle is essential. Encourage people to work together to get the
risks, and run their governments. Underestimating how hard most out of the Cloud. In today's digital business world, it is
it will be can make the supposed rewards less critical. vital to use cloud software to stay ahead of the competition.
Adopting cloud-based platforms, on the other hand, needs
On the other hand, avoiding the Cloud because of what careful planning and execution based on a complete picture
you think are its risks can keep you from using its vast of costs, benefits, risks, and strategic effects.
potential. The study emphasizes that cloud computing can be
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