Tuesday, 29 May 2012

Issues and challenges of cloud computing


Cloud Computing Security Issues
It is clear that the security issue has played the most important role in hindering Cloud computing. Without doubt, putting your data, running your software at someone else's hard disk using someone else's CPU appears daunting to many. Well-known security issues such as data loss, phishing, botnet (running remotely on a collection of machines) pose serious threats to organization's data and software. Moreover, the multi-tenancy model and the pooled computing resources in cloud computing has introduced new security challenges that require novel techniques to tackle with. For example, hackers are planning to use Cloud to organize botnet as Cloud often provides more reliable infrastructure services at a relatively cheaper price for them to start an attack. The multi-tenancy model has at least created two new security issues. First, shared resources (hard disk, data, VM) on the same physical machine invites unexpected side channels between a malicious resource and a regular resource. Second, the issue of "reputation fate-sharing" will severely damage the reputation of many good Cloud "citizens" who happen to, unfortunately, share the computing resources with their fellow tenant - a notorious user with a criminal mind. Since they may share the same network address, any bad conduct will be attributed to all the users without differentiating real subverters from normal users. (Tharam Dillon, 2010) 


Start-up companies often lack the protection measures to weather off an attack on their servers due to the scarcity of resources - poor programming that explores software vulnerabilities (PHP, JavaScript, etc) open ports to firewalls or inexistent load-balance algorithms susceptible to denial of service attacks. For this reason, new companies are encouraged to pursue cloud computing as the alternative to supporting their own hardware backbone. However, cloud computing does not come without its pitfalls. For starters, a cloud is a single point of failure for multiple resources. Even though network carriers such as AT&T believe a distributed cloud structure is the right implementation, it faces major challenges in finding the optimal approach for low power transmission and high network availability some people believe that major corporations will shy away from implementing cloud solutions in the near future due to ineffective security policies. One problem comes from the fact that different cloud providers have different ways to store data, so creating a distributed cloud implies more challenges to be solved between vendors. (Andrei, 2009)

 Data Security
Security refers to confidentiality, integrity and availability, which pose major issues for cloud vendors. Confidentiality refers to who stores the encryption keys - data from company A, stored in an encrypted format at company B must be kept secure from employees of B; thus, the client company should own the encryption keys. Integrity refers to the face that no common policies exist for approved data exchanges; the industry has various protocols used to push different software images or jobs. One way to maintain data security on the client side is the use of thin clients that run with as few resources as possible and do not store any user data, so passwords cannot be stolen. The concept seems to be impervious to attacks based on capturing this data. However, companies have implemented systems with unpublished APIs, claiming that it improves security; unfortunately, this can be reversed engineered; also, using DHCP and FTP to perform tasks such as firmware upgrades has long been rendered as insecure. Nevertheless, products from Wyse are marketed with their thin client as one of the safest, by using those exact features. Lastly, the most problematic issue is availability, as several companies using cloud computing have already experienced downtime (Amazon servers subject to what appeared to be a denial of service attack). Other things to keep in mind are contract policies between clients and vendors, so that data belongs only to the client at all times, preventing third parties to be involved at any point. Also, authentication should be backed by several methods like password plus flash card, or password plus finger print, or some combination of external hardware and password. One benefit of cloud computing is that client software security does not need to be enforced as strictly as before. This aspect concerns the view of cloud computing as software as a service, as it becomes more important to ensure security of data transfer rather than a traditional secure application life cycle.
1 Cloud Computing Security Issues
Identified seven issues that need to be addressed before enterprises consider switching to the cloud computing model. They are as follows:
        . privileged user access - information transmitted from the client through the Internet poses a certain degree of risk, because of issues of data ownership; enterprises should spend time getting to know their providers and their regulations as much as possible before assigning some trivial applications first to test the water.
. regulatory compliance - clients are accountable for the security of their solution, as they can choose between providers that allow to be audited by 3rd party organizations that check levels of security and providers that don't
  . data location - depending on contracts, some clients might never know what country or what  jurisdiction their data is located
    . data segregation - encrypted information from multiple companies may be stored on the same hard disk, so a mechanism to separate data should be deployed by the provider.
    . recovery - every provider should have a disaster recovery protocol to protect user data
        . investigative support - if a client suspects faulty activity from the provider, it may not have many legal ways pursue an investigation
        . long-term viability - refers to the ability to retract a contract and all data if the current provider is bought out by another firm Given that not all of the above need to be improved depending on the application at hand, it is still paramount that consensus is reached on the issues regarding standardization.


Cloud Computing Challenges
Challenges that cloud computing currently faces in being deployed on a large enterprise scale:
        . Self-healing - in case of application/network/data storage failure, there will always be a backup running without major delays, making the resource switch appear seamless to the user.
        . SLA-driven - cloud is administrated by service level agreements that allow several instances of one application to be replicated on multiple servers if need arises; dependent on a priority scheme,  the cloud may minimize or shut down a lower level application. 
        . Multi-tenancy - the cloud permits multiple clients to use the same hardware at the same time, without them knowing it, possibly causing conflicts of interest among customers.
        . Service-oriented - cloud allows one client to use multiple applications in creating its own.
        . Virtualized - applications are not hardware specific; various programs may run on one machine using virtualization or many machines may run one program.    

Linearly scalable - cloud should handle an increase in data processing linearly; if "n" times more users need a resource, the time to complete the request with "n" more resources should  be roughly the same.
        . Data management - distribution, partitioning, security and synchronization of data.

Refrences
Andrei, T. (2009, April 30). Cloud Computing Challenges and Related Security Issues. Retrieved April 30, 2009, http://www.cs.wustl.edu
Tharam Dillon, C. W. (2010, Dec 31). cloud computing challenges and issues. Retrieved Dec 31, 2010, from cloud comouting challenges and issues website: http://www.techpdf.in

current challenges of cloud computing


    challenges of cloud computing
 The adoption of a cloud computing presents an organization with a number of challenges which are below. The service themselves have long been referred to as software as a service. So we used that term the data centre software and hardware which is called as a cloud.
Data Governance
Most of the data governance have the following points
v  In data warehousing is a large repository of data where data are integrated form different source like subject oriented, integrated and time varying.
v  Distribution is the important part of promiting of marketing so that cloud can access the information via data centre.
v   Technical person for accessing whenever they needed any kind of software loading in their time interval.
v  Maintenance in cloud computing which is not easy job, security, threats, updated software                      
Manageability
     In space environment the cloud is manage properly of variety of web service like Sales force’s force.com, Google’s search engine. The infrastructure and platform that don’t have management capability which not implementable. The cloud infrastructure and platform recognized the need for management early and have built management.
       v  Server process huge amount of data.
v  Cloud computing developer manage scalability problem

·         Monitoring

Monitoring, whether is for performance or availability, is critical to any IT shop. We are not talking about just how much CPU or memory the machines are using.
v  Transaction and I/O disk
v  CPU and memory usage
most of the time in virtual environments and measure how long your transaction taking.
·         Reliability and Availability
In cloud computing the people believe the matter is enterprise which depends on the cloud infrastructure to run their business. In many company they are not willingness to pay dues in cloud because of their reliability. In recent cloud offering only in public rather then private.
I realise that there are no fundamental problem to make a cloud-computing environment as secure as huge majority of inbuilt IT environments, it will overcome immediately with well understand technology for example virtual LAN, packet filter and firewalls etc.
·         Virtualization Security
Security is broadway of cloud computing technology which has security policies on access, VLANs, and firewall make virtualization security. It has standard enterprise security policies on access control, activity monitering, patch management.
Recent presentations from Blackhat has demonstrated that we shouldn’t sleep so tight at night. As IT shops get more educated on the virtualization security issues, it will become one of the factors they will consider when they move into the cloud. Access control and monitoring of the virtual infrastructure will be on top of their activities.
The Cloud computing is concern that will be the web 2.0 and adopted by IT organization. However, the industry as a whole need to get challenges and oppertunities of computing industry.
References
Jeffrey J. Hardy (http:// cloud-computing-challenges-benefits-and-the-future.aspx.htm)
McNurlin, BC & Sprague, RH Jnr (eds) 2006,  Information systems management in practice, 7th edn, Pearson/Prentice Hall, Upper Saddle River, New Jersey
http://www.eecs.berkeley.edu/Pubs/TechRpts/2009/EECS-2009-28.pdf)






Monday, 28 May 2012

Cloud Computing Vision

The cloud computing provides real cost savings and agility to its customers in all cloud service models. It helps in the capability of the organisations in their business’s vision.  Whether trying to create a private cloud to better serve internal customers or building a public cloud for an external customer base, there are several key considerations that can be linked to successful cloud initiatives.

*              Understand the IT service portfolios, service-level requirements and service costs before building a private cloud service.

*              Develop a separate strategic plan for all services under consideration, as well as an analysis against external service offerings.


*              Build a private cloud service only after developing a complete business case analysis so that it is all about return on investment, in terms of cost and business value.

*              Evaluate and constantly benchmark the solution against external cloud service offerings, and ensure that flexibility is designed in at the onset.


An organisation’s business architecture plays an essential role in determining how cloud should be leveraged to achieve goals and objectives. This business architecture consists of two primary components: the business strategy and the structure utilized to implement that strategy. The business structure defines the core capabilities of the organization and what business processes support those capabilities. For private cloud implementations, the organization is the IT organization of the business whereas for public clouds, the IT organization is the business. For example, an IT organization with the goal of reducing the amount of time is required to procure, provision, and install new hardware systems in order to clarify the concept of strategy and structure components of an organization‘s business architecture. This business goal can be implemented through a consolidation and virtualization strategy revolving the methods and procedures for requesting hardware services from the IT department. The structure employed to support the strategy involves the IT department‘s core capability of providing hardware components to business users, and the process required to provision that hardware.

In order to achieve the result, the business users are expecting IT departments to build the systems necessary to support the business goals and objectives, a tighter alignment between the business and IT is mandated. Enterprise architecture is the link between the business strategy and IT‘s execution of that strategy in the cloud computing. It needs to establish a product portfolio to sell (cloud services), market this portfolio (to internal and/or external users), provide a financial model to charge or recoup costs for services provided, provide customer service for the services it provide, and well as performing all those other activities that a business normally performs.

References:

what really cloud computing means


             MEANING OF CLOUD COMPUTING
Internet based services is called cloud computing. The cloud information is more than internet. The cloud is where to use technology when we needed it in very short interval of time. We don’t worry about the software installation, updating the desktop system and technology cost certainly minimise the because of cloud system. Barrett  said the cloud can be both infrastructure and software which can be an application we access through the web that can be allow the cloud service:
Let us suppose if you are in anywhere of the cloud the operating system explorer can access a services that facility is based on beyond the internet. There are three criteria of cloud computing.
It is free of cost to get started.
Pay only as we used it.
Service access via web browser.

The system that appear in the form surrounding environment which has of cloud computing. Information and Communication Technology (ICT) system that allow stakeholders to use the internet to access cloud program whenever we need. Today, the emerging concept in cloud computing that broadcast reliable services delivered through next generation data warehouse. Customer will be able to access application and information and data from surrounding environment any time when we needed. In other sense, cloud to be single node for access for all the computing needs of customers. Computing in is available in any time with robust infrastructure.
The number of practitioners and researchers have attempted to define cloud in different way. Based on our empirical evidences what clouds are promising we describe, “A Cloud is a type of parallel and distributed system consisting of a collection of interconnected and vertualised computers that are dynamically provisioned and presented as one or more unified computing resources based on service-level agreements established through negotiation between the service provider and consumers.”
Gartner  cloud computing market rise about 21 percent so he define it is the term used to describe those system that allow developer, business and consumer to use the internet to achieve program and data at remote computer station.

Trends
In recent system, clouds in the form of cluster and grids. Clouds are emerging internet based system which have different in time interval. The term cluster computing, grid computing and cloud computing. Google trends, it can be observed that Cluster computing was in 1990s, from begaining from 2000 Grid computing became highlighted, and now Cloud computing started to become popular.
Technology
It has Network, Web2.0, Hardware virtualizations and software.

Network
The advance in grid computing that is networking technology, such as 3G and 8022.11(Wi-Fi), have been contributed significantly in the adoption of grid early 2008. Mobile device is good example of network cloud computing we access digital signal from open environment.

Web 2.0
The web 2.0 era has brought us technologies such as blogs, wikis and social networking platforms. These technologies provide users more feature rich environments, make it easier for users to generate and share web content. The individual network seems to make this less important. Similarly, individuals’ web pages can provide a relationship with business company ads web 2.0 application.

Hardware Virtualization
Hardware virtualization is the emerging technology that belongs virtualized resources like computation, networking and storage ensures resources. Hardware virtualization is the abstraction of the hardware resources into virtual representation of those resources. It includes the aggregating of multiple physical storage resources into a single virtual storage resource that can be managed centrally or logically divisional into virtual machines. Hardware virtualization has emerged as a powerful and practical way to get more from existing storage systems, consolidate resources and simplify the environment. It becomes key element to build infrastructure for workstation, data centers, and production environments. Hardware virtualization supports sharing of computing resources efficiently so that it increased utilization of the resources and decreased infrastructure cost effectively. Virtualization helps in workload consolidation, isolation and migration. Today virtualization is taken as relief for Cloud computing technology based businesses because of its ability for processing and handling hundreds of tera bytes of data per day. The hardware virtualization which provides broad range of storage, connectivity and presentation to virtual machines.

Software
In the cloud base system the software divided in to software as well as infrastructure service. In term of maturity, software in the cloud is important then hardware. In data center hardware and software which is called a cloud. The utility computing and SaaS is not including the private cloud. The term private Cloud belongs to internal data information and software. The software installation, update and maintenance control of its verson, so the client can access the software service anytime anywhere sharing, storing in cloud.


References

meaning of Cloud Computing  hardware virtualization, viewed online

Amazon. Building Facebook Applications viewed from                                                    <http://aws.amazon.com/partners/facebook>

A  AuYoung, B  Chun, A Snoeron, 2004, Architecture Support for the On demand Infrastructure, Boston, USA 

By     Bishnu Bahadur Bista        215106

PCI Compliance in the Cloud Computing

The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Essentially any merchant that has a Merchant ID. The Payment Card Industry Security Standards Council (PCI SSC) was launched on September 7, 2006 to manage the ongoing evolution of the Payment Card Industry (PCI) security standards with focus on improving payment account security throughout the transaction process. With the mission of protecting and securing credit card data, the PCI Security Standards Council has established specific compliance requirements for companies that process, transmit or store credit information. Companies are classified as either merchants or service providers (service providers are entities that perform a function such as processing a credit card transaction or providing backup tape storage of credit card data).


The PCI Security Standards Council's recent guidance on PCI Virtualization seems ineffective as many of the decisions and assumptions made by organizations proved to be wrong in regard to virtualization which required extra spending and effort to achieve compliance because some of the decisions and assumptions made by the organisations in the past about these topics will turn out to be wrong. Cloud Computing helps to define the issues involved. While the guidance has made it clear that compliance in the cloud is feasible, the council has also made it clear that PCI in the cloud is no pushover from a technical standpoint. Getting to compliance in the cloud involves the active participation of both the organization itself, as well as the cloud provider.
One of the issues involved in PCI compliance in the cloud  is a shared effort between customer and provider. According to the guidance, both the hosted entity and provider clearly defines and documents the responsibilities assigned to each party for maintaining PCI DSS requirements and any other controls that could impact the security of cardholder data. So, while the organizations are affected by the compliance, both the provider and the hosted organization need to take action. Hosted entities need to document their processes and controls and make sure all of the controls are thoroughly addressed, either by themselves or the provider. Providers, on the other hand, may need to provide documentation (for example in the form of an explanation on how they meet controls), initiate auditing efforts to provide evidence of implementation, or modify their environment to make sure they meet controls as the PCI virtualization guidance categorically links together scope for the hypervisor and the guest image which make whole environments to change together.


References:
1. PCI Compliance, www.ncircle.com/PCICompliance
2. PCI Compliance, http://www.accudatasystems.com/solutions/pages/pcicompliance.aspx
3. PCI Security Standards Council, https://www.pcisecuritystandards.org/


Sunday, 27 May 2012

Today’s cloud computing thinking


As in the first phase of the Web, much of the framing of cloud computing today is people and organisations being consumers. The dominant theme is vendors of online services and IT equipment chanting the cloud computing mantra in an effort to get more sales. From a customer’s perspective, everything IT is now available as a service- infrastructure (Iaas); development platforms (PaaS); and software (SaaS). The services are deployed in many flavours, with customers’ encouraged to make sense of private vs. public vs. community vs. hybrid clouds.
Infrastructure and development platforms are of more interest to IT departments. SaaS in the form of online services and applications are what touches most of us. Software delivered as a cloud service is becoming an increasingly dominant consumption path, both for people and organisations. There’s a huge variety available- at home (think email, photos and videos) and for the office (business applications include accounting, collaboration, customer relationship management, etc.)
These services have domain expertise embedded in them. After all, you’re hardly likely to sign up to Xero for accounting or Salesforce.com for customer management otherwise. Many cloud services also act like platforms for other providers to sell their own add-on cloud services.
Yet there’s one thing that underlies the current cloud computing model- the assumption that we are only consumers of cloud services, not producers of them. Just as the first phase of the Web assumed we were only consumers of information.
Ref: Vikram (2012). Today’s cloud computing thinking. [ONLINE] Available at: http://internetnz.net.nz/news/blog/2012/Expertise-Service-EaaS-or-Cloud-Computing-20. [Last Accessed 27 May 2012]
By: Nabin Gautam (1040801)

Wednesday, 23 May 2012

Cloud Computing for Small Business


Small Business Cloud Computing

Every single business want to run successfully till the future either its small or big , the owner should understand that how to  saving time and saving cost are the success of running business at competitive market. Whether the business is just starting or the one is already in market, cloud software and services can help you cut costs while also freeing up your time so you can concentrate on doing what you do best - running your business.
Cloud computing is really a benefits for the small business even though, it has certain disadvantages or is right for every business. Basic understanding of how cloud computing works for your business such as how cloud services and software are delivered, you need to evaluate cloud software and service providers, then carefully weigh the pros and cons of cloud computing as they apply to the needs of your business, after getting some knowledge it will much helpful to decide whether cloud computing can help your business grow you need.



Advantages of Cloud Computing for Small Business

Reduce Investment cost - Having a computer and an Internet connection can be ready to take advantage of most cloud offerings without investing in any new hardware, specialized software, or adding to staff. This is one cloud computing advantage that has universal appeal regardless of the industry you are in or type of business you run.
Pay as You Go - Large upfront fees are not the norm when it comes to cloud services. Many software as a service applications and other types of cloud offerings are available on a month to month basis with no long term contracts.
Faster services - You can usually be up and running significantly faster with cloud services than you can if you have to plan, buy, build, and implement in house. With many software as a service applications or other cloud offerings you and your team can start using the service within hours or days rather than weeks or months.
Scalability - Cloud computing can be scaled to match the changing needs of your small business as it grows. You can quickly add additional licenses, storage space, and more as needed.
Easy to manage - There are no power requirements or space considerations to think about and users do not have to understand the underlying technology in order to take advantage of it. You will not be responsible for maintaining and updating any new hardware or software. Planning time is considerably less as well since there are fewer logistical issues.
Location Independent - Because services are offered over the Internet, you are not limited to using cloud software or services just at work or only on one computer. Access from anywhere is a big advantage for people who travel a lot, like to be able to work from home, or whose organization is spread out across multiple locations.
Device independent - Most web-based software and cloud services are not designed specifically for any one browser or operating system. Many can be accessed via PC, Mac, on tablets like the iPad, and through mobile phones.
              

 

Disadvantages of Cloud Computing

Everything has two parts positive and negative. Here we understand clear and easy the advantages of cloud computing, what about the disadvantages? As a business owner you will have to careful of the disadvantages of cloud computing.
     Data Loss - Hardware failures, outages, improper backup procedures, hackers, and rogue employees can all cause you to lose some or all of your data. With cloud services, you will have to give up some degree of control over the prevention of data loss.
      Security Issues - You are turning over data about your business and your customers to a third party and entrusting them to keep it safe.  Without the proper level of security, your data could be exposed to users outside your company or accessed by a hacker.
       Downtime - While we would like to think our data or the cloud based services that we use are available on demand all day every day, the truth is they are not. System uptime is entirely out of your hands with cloud services. There are two types of downtime you may encounter.
   Scheduled downtime might be required to upgrade software, install new hardware, or perform other routine maintenance. Typically, scheduled downtime is infrequent, announced well in advance, and takes place at non-peak hours where usage is likely to be low so as to minimize interruption to the customer.  
    Unscheduled downtime, otherwise known as an outage, is indicative of some sort of failure or problem.  It is rare but outages do happen even for the larger, more established cloud providers. If it does, there is not much you can do other than wait.
     Integration and Customization - Some web based software solutions and cloud services are offered as a one size fits all solution. If you need to customize the application or service to fit your specific needs or integrate with your existing systems, doing so may be challenging, expensive, or not an option.
It's up to you to decide whether the cloud computing advantages outweigh the disadvantages or not. Cloud services be sure the concerns above and any of your own are addressed adequately. Most web based solution providers are very upfront about service levels, capabilities, and data security. They typically go to great lengths to address these issues.

Summery
Cloud services really helps the small business either it has certain disadvantages. The investment cost is lower where the owner can save time and money. It is clear and easy to understand it reduces the money to hire the IT staff and software problem.  The business only needs internet access with computer or mobile to get the services.  Through Cloud computing the business owner can quickly add additional licenses, storage space, and more as needed as it grows. It is very easy to manage the software upgrade is not the problem of the user. The services via internet so anybody can get it, form anywhere there is internet access. Cloud computing services can get by using independent devices such as laptop, Mac, mobile phones etc.
Before getting cloud services for your business there is some issue, which called disadvantages of cloud computing. Outages software, hackers, hardware failure cause the some off your data loss or all data could be collapse. Security issues your business and your customers to a third party and entrusting them to keep it safe.  Without the proper level of security, your data could be exposed. If the improper manage in the main cloud services provider the services could be failure or problem there is not much you can do other than wait. Customize  is another problem of colud services in the future if you are not satisfy with it you need to change the system which make you more costly.



References


Grisham, J. (2011-2012). benefits of cloud computing for small business. Retrieved from thesmallbusiness.org.


Tuesday, 22 May 2012

What Is Cloud computing


      

What is Cloud Computing?
Generally Cloud computing means storage internet services data through cloud.  Now a days the most part of the world’s get an access of the internet, the general term of  cloud computing for anything that involves delivering hosted services over the Internet. For example: youtube, facebook, ebay etc .
There is  private or public cloud. Public cloud sells services through Internet to it’s customer. (Currently, Amazon Web Services is the largest public cloud provider.) In the current world most of the business run through internet where they has to hired some IT specialist and needs software however, cloud computing is help to reduce these cost. Private Cloud is like mostly personnel data services which supplies hosted services to a limited number of people. When a service provider uses public cloud resources to create their private cloud, the result is called a virtual private cloud. Using of cloud computing for Private or public, is to provide their services to the user easy, scalable access to computing resources and IT services.


Services are divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). The name cloud computing was inspired by the cloud symbol that's often used to represent the Internet in flowchart s and diagrams.
 
Infrastructure-as-a-Service like Amazon Web Services provides virtual server instance API ) to start, stop, access and configure their virtual servers and storage. In the enterprise, cloud computing allows a company to pay for only as much capacity as is needed, and bring more online as soon as required. Because this pay-for-what-you-use model resembles the way electricity, fuel and water are consumed, it's sometimes referred to as utility computing.
Platform-as-a-service in the cloud is defined as a set of software and product development tools hosted on the provider's infrastructure. Developers create applications on the provider's platform over the Internet. PaaS providers may use APIs, website portals or gateway ware installed on the customer's computer. Force.com, (an outgrowth of Salesforce.com) and GoogleApps are examples of PaaS. Developers need to know that currently, there are not standards for interoperability or data portability in the cloud. Some providers will not allow software created by their customers to be moved off the provider's platform.
In the software-as-a-service cloud model, the vendor supplies the hardware infrastructure, the software product and interacts with the user through a front-end portal. SaaS is a very broad market. Services can be anything from Web-based email to inventory control and database processing. Because the service provider hosts both the application and the data, the end user is free to use the service from anywhere.(Margaret Rouse 2010)
Summery
Cloud computing can use from anywhere it is cheaper and more flexible because it is run by internet which needs computer even user can get access through mobile
               In the present era Gmail, hotmail, facebook, youtube are in the cloud. Business are renting the cloud services so they don’t worry about the  upgrade the software every time when change their version. A cloud provider can quickly add extra capacity or scale it back again when user need it. Business reducing the cost on It more than 50% after they get the services on cloud computing , somehow hardware and internet costs are dropping, sure, but supporting end users is still a significant cost. Moving to the cloud removes the cost of maintaining your own systems, but you still need to configure the generic cloud-based service to match your business’ unique needs, train your staff and help them find lost spreadsheets.





Reference

Stilgherrian. ( July 2010). What is cloud computing? Australian Financial Review .


Margaret Rouse. 2010. cloud computing. http://searchcloudcomputing.techtarget.com. [Accessed December 2010].






summary:

It is a delivery of computing and storage capacity as a service to a heterogeneous community of end-recipients.It is very useful to every individual,small and big enterprises,companies and organisation.Cloud can be compute as Software as a service(SAAS),Platform as a service(PAAS) and Infrastructure as a service(IAAS).Also there are three types of clouds: Private,Public and Hybrid cloud.Nowadays use of cloud computing become so popular and easy that even it is being using in accounting and finance department.Any companies working with CPAs and other outside advisors regularly exchanges documents like invoice,purchase order etc with their suppliers or any related customers.With the help of cloud computing they can access the data and share it.This means companies are changing from on premises software to the cloud software or should say  SaaS.cloud computing services are easier to use and manage, more adaptable, and potentially less expensive than the traditional on-premises model for application deployment.There are some risks in the cloud clouding  which are still being work in process to be fixed.Companies like IBM,Amazon,Microsoft,Google they all are the service provider so because of so much technologies roaming all together in the cloud there are chances of some unpredictable risks.Besides this, there are also other risks like regulation and legislation and Regulatory compliance.As cloud computing is a technology that helps IT model to be an information-centric and information-rich organisation.Cloud computing will help IT teams to transition away from being primarily technologists to being more business aligned informationists.Cloud computing will make a good governance on information assets as well as high content quality to the IT teams.A good governance with high quality content will help organisation to increase the value of information assets.There are many things that IT organisations do which is making  making it harder to migrate to cloud computing, but the biggest failing looks like an inability to recognise that cloud computing will require IT organisational change management.Cloud computing can save a big money and time and it is this particular point that will drive its growth in future.

Introduction

This is where a data,software applications and computer processing powers are access from a cloud of online resources.It permits individual users to excess a data and application from any device as well as an organisation to reduce a capital cost by purchasing software and hardware as a utility service(Lamont, Judith. 2011).There are three ways to compute cloud :

1)SAAS: It is known as a software as a service.It allows users to run existing online applications.It is the easiest way to cloud compute where off the shelf applications are accessed over the Internet.The advantage of SAAS is that all applications are free or charged over subscription.SAAS application  is also accessible from any computer on internet and excellent collaborative working.(Lamont, Judith. 2011)

2)PAAS: It is known as platform as a service.It allows users to create their own cloud applications using supplier specific tools and languages..It provides environment and tools for creating new online applications.It allows users to create new online application very rapidly at lower costs.Such application may be used privately or publicly.It limits developers to provide languages and tools.There are a risk of vendor lock in as application built in one provider platform cannot be moved to another.(Lamont, Judith. 2011)

3)IAAS: It is known as infrastructure as a service.It allows users to run any applications they please on cloud hardware of their own choice.It allows existing applications to be run on a cloud's supplier hardware.The fundamental unit of Claud infrastructure is a server.A server can be a physical or virtual.(Lamont, Judith. 2011)

Types of cloud computing:


1)private cloud: It is a data centre dynmically provisioned and which  delivers services to the business.In private cloud data stays in a date centre which is always available.It is not provided to third parties and it makes intregation with other systems much easier.(sam johnston. 2009)

2)public cloud: It offers anything from simple personal storage to complex suites to entify its services.It consists of data centres owe by service providers to manage the infrastructure,service,network switches and storage systems and they sell the services to those service system providers.from a customer point of view it has got a price advantage over private cloud because the cost of infrastructure are shared among many users.everyone pays less than they would if they ran their own clouds.(sam johnston. 2009)

3)Hybrid cloud: It is a ability to connect users application data and services to a public cloud have them in operate and efficiently work amongst each other.By utilizing hybrid cloud architecture, companies and individuals are able to obtain degrees of fault tolerance combined with locally immediate usability without dependency on internet connectivity.(sam johnston. 2009)

Critical points to be discussed:

How cloud computing is useful to Accounting & Finance department?

There are some points to be discussed:

1)Location -independent access to the data: SaaS is a small but rapidly growing part of the applications software business.And with the help of  this modelWe can get the access to whatever we want and wherever we are from that means we can see dashboard ,reports  and see drill down information, and  also approval information in terms of financial applications.We just need internet connection and a computer to use it.Workflows don’t get stuck with us as an approver because we are traveling or out of the office.Also its very secure working within the application.There will no problem in VPN and remote access issues.(/blog.cloud9realtime.com)

There are major benefits for a multi-location business.There is no longer concerned about exchanging files through e-mail, telephone calls, or waiting until their computer is online another time.

2)Avoid of headaches and cost of running an In-House IT department: While using SaaS we will avoid management time and focusing on new customers, new products, new differentiation, than worrying about building an IT organisation just to run  in-house application.  we will avoid all that cost, all that hassle, things like capacity planning meetings, budgeting for IT, all that goes away.(Finance in the Cloud. 2009)

3)A world class IT operation far better than we can deliver internally: As SaaS is one of the world class vendor we can expect a premium IT service, far exceeding what we can contract for and deliver our self.cloud service providers make a living on up-time, so if the application is not there, they can’t sell it, and they can’t get paid.As it is world class IT operation it runs with 99.9% availability.(blog.cloud9realtime.com)

4)High return on investment: With the SaaS application we can get higher ROI.  This is in part due to the obvious IT cost avoidance.  Part of it is that SaaS applications are feature rich, written relatively recently with the knowledge of the past.  And part of it is more subtle costs that we don’t necessarily think about initially.Also SaaS application doesn't cost anything.Also there is no need of implementing a new version of the software every two to three years to get access to new features due to the change in underlying database version.Also all of the hidden costs will be disappeared.(Finance in the Cloud. 2009)

what are the cloud computing risk ?

Data security: In terms of data security  the risk in the cloud is the data is not secured.The data can be accessed by others.Also the data could be lost if it is corrupted.If it is corrupted than it will become very difficult to recover. Sensitive data processed outside the enterprise brings with it an inherent level of risk, because outsourced services bypass the physical, logical and personnel controls IT departments exert over in house programs. (prakash sri. 2011)

Regulatory compliance: Organisation must be and will be the responsible for the security and integrity of their own data, even when it is held by a service provider. The ability to demonstrate to auditors that their data is secure despite a lack of physical control over systems, hinges in part on educating them, and in part on providing them with the necessary visibility into all activity.(prakash sri. 2011)

System downtime: Well this is another risk in cloud computing.It is about traditional technology on premises.System downtime in any form is very distructive.Recently in NASA there was problem in technology well we can take example of a bank card transactions.we use electronic payments when we use card.But if the technology is down or i should say system is down than we can't use electronic payment.It happens due to too much of cloud technologies in the cloud or energy in the cloud makes network very slow.(prakash sri. 2011)

Privacy agreement and service legal agreement: We should have a suitable agreement with our service provider before commencing service.This will help in safeguard against certain risks and also outline the responsibilities of each party in the form of a service level agreement (SLA). we should understand the responsibilities of service provider before agreeing it.(prakash sri. 2011)

Geographical reasons: There can be the risks of regulation and legislation  when storing data.If an organisation or business uses an overseas service provider than they have to be aware of regulation and legislation of that particular place or area.(prakash sri. 2011)

How can Cloud Computing Influence on Business Alignment, Governance, and Content Quality?

At a moment around 60-70% of business are using different types of IT functions and resources to focus on their core business.It means cloud computing will very soon outsource IT that will lead organisations to shift their IT infrastructure to cloud.Business service and applications like business intelligence and dashboard application will have measurable benefits, are straightforward to implement, require agile and iterative development processes, are read-only applications, and are relatively low risk.(Richard Blahunka. 2011)

Applications like business intelligence and dashboard is very important to maintain information value and quality in IT.The IT department of organisation will try to shift managing hardware assets and data centre operations to managing its information assets as well as information architecture.All these assets and information will be properly aligned to the business strategy.(Richard Blahunka. 2011)

cloud computing is very important in terms of governance.Cloud computing will help to establish and maintain good governance of data, models, business rules, content, data, information, applications, system performance, usage, etc. The whole performance of any organisation are measured by business performance dashboard for its goals and objectives.It is very important to have a proper governance in the information assets .so here cloud computing plays an important role as it will protect and increase the value of those information assets.Also makes organisation flow steady with the likes of stewardship (content, business rules, business models, metrics, applications, etc),process monitoring and process controls,content security and privacy,master data management (MDM) and content standardization,cloud computing Capability Maturity Model (CMM) and managing and integrating emerging  IaaS, SaaS, and PaaS.(Richard Blahunka. 2011)

Content quality is also influenced by cloud computing.Any business decision or action are based on its business information.It depends its good quality information or bad.If its bad information or data than the overall value of organisation information assets will be reduced.In cloud computing such distructions are very less.There will be more importance of quality information to the IT department as information assets are aligned with business strategy.With the help of content value (data and other content as enterprise resources having measurable organisational value),actionable content ( reliability, accessibility, availability, timeliness) and certifiable content (consistency, completeness, accuracy, conformity) in cloud computing there will be proper guidance in content quality which is very important to add up the value to the organisation.(Richard Blahunka. 2011)

Why cloud computing forcing IT organisation to change in IT organisation management?

With so many big companies like microsoft,google,Amazon  in the corner cloud computing looks like a real architecture where  data center has a good chance of being connected to in the near future.If it happens than IT organisation has to change.companies will not get all the things from cloud computing they want if  IT organisation doesn't adopt the way they  work with business units.Too many IT organisations are just focused on pilots project or limited scope.There is no effective management structure in place to really deal with it.(Babcock, Charlie |. 2009.)
The IT organisation believes that cloud computing saves money but they don't have idea on management implication that associates with management model.As a result they suffer from a form of cloud fatigue that makes it difficult to appreciate all the nuances of the cloud computing model.So many of  them engage in the from of cloudwashing.It is clear that organisations need to work on managing services rather than managing devices.for example online Services that Help our SMB Work Better", rather than the management of servers, storage and network products and technologies.(Michael Vizard. 2011)
Also,IT workload into the cloud will require some different management approaches, and different IT skills, from what’s grown up in the traditional data centre. With all these combination of  technical, economic and cultural issues are forcing  IT organisational change.It's better to have IT leaders being  well advised to be the ones seen as driving those actual changes rather than being seen as simply letting that just happen to the IT department.(Michael Vizard. 2011)

How can cloud computing help business and organisation to save time and money?

There are some points to be discussed that will describe how cloud computing will save time and money of business and organisations.

1)Low labour costs: In public cloud ,It functions works as a provider and in private cloud,IT function increase their efficiency as management is more efficient in a virtualized environment.so basically both private and public cloud will work eachother to perform several tasks which will allow companies to free up some labours.It will help them in saving their labour costs.(Hoboken, NJ and New York City, NY (PRWEB. 2012)

2)Faster time to value: Companies can save their time when they purchase or install through clouds rather than wait for some time to get it.(Hoboken, NJ and New York City, NY (PRWEB. 2012)

3)Pay as you use: Cloud computing companies operate on a pay-as-you-use model, or in other words, a demand-only model. As a business availing of cloud computing services, you only pay for the services you require and use. This works out to be much cheaper than acquiring equipment you hardly use.(SOURYA . 2011)

4)Maintenance costs: Cloud computing also saves maintenance costs.There is somebody else who looks after IT infrastructure,provides support,technical support,backup and all other things related to the maintenance.(SOURYA . 2011)

5)simplify capital expense: When we buy  expensive equipment, that’s considered a capital expenditure, and a big one at that.when we depreciate it on the book it can be very difficult and headache.With cloud computing, this expense is spread across several operational cycles, becoming part of operational costs. As any corporate finance professional will tell you, this is a much better alternative. Factor in the time value of money, and the balance shifts even more towards cloud computing.It will make very easier for a lot of medium-sized businesses to manage their books(SOURYA . 2011).


Criticism:


There are some criticism of cloud computing of not allowing users any freedom and making them totally dependent on cloud computing provider.It may be due to the disrupt in the access of data . If we have to take a example than we can simply say like network outages, denial of service attacks against the service provider, and a major failure of the service provider infrastructure, even if data is securely stored in a cloud.Still there are some other issues  as    well regarding visibility and transportability due to the complex nature of cloud  and web service systems(Cloud computing. 2012).


Experts on the future of cloud computing and its services

According to the recent survey from some of the experts in cloud computing believes that in near future most people will access software applications and information through online and with the use of remote server networks.It is also predicted that most users will perform most computing and communicating activities through connections to servers operated by outside firms.As predicted some experts believes that In near future there will be a hybrid life where most of the peoples all over the world will work in Internet based applications such as Google Docs, and in applications run from smartphones where a spiring application developers will develop for smartphone vendors and companies that provide Internet-based applications but some experts still disagreed with that.According to survey there was a two thoughts on cloud computing expand .some believes that cloud computing will expand but the desktop  will  not die out also it will be used in new, improved ways in tandem with remote computing.There will  be continuing expand of cloud computing which will come to dominate information transactions because it will offer so  many advantages that allows users to have easy, instant, and individualized access to tools and information they need wherever they are, locatable from any networked device.Surveys also said that there will be some hurdles like service and compatibility which must be crossed before cloud computing gains more adopters.Beside this there will be the lack of broadband spectrum to handle the load if everyone is using the cloud,the variability of cost  and access in different parts of the world and the difficulties that lie ahead before they can reach the ideal of affordable access as well as intellectual property and privacy conflicts(The Future of Cloud Computing - Pew Research Center. 2012).


References:

Lamont, Judith. 2011. Cloud computing: It can work for you . [ONLINE] Available at:http://search.proquest.com/docview/1014027103accountid=136883. [Accessed 21 May 12].



sam johnston. 2009. CloudComputingTypes:PublicCloud,HybridCloud,PrivateCloud. [ONLINE] Available at:http://www.circleid.com/posts/20090306_computing_types_public_hybrid_private/. [Accessed 06 May 12].

http://blog.cloud9realtime.com/finance-and-accounting-benefits-from-cloud-computing/. 2012. Finance and Accounting Benefits from Cloud Computing. [ONLINE] Available at: http://blog.cloud9realtime.com/finance-and-accounting-benefits-from-cloud-computing/. [Accessed 24 May 12].
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Hoboken, NJ and New York City, NY (PRWEB. 2012. New Article: How the Cloud Saves Money and Builds Business in 5 Key Ways. [ONLINE] Available at:http://prweb.com/releases/cloud/consultant/prweb9158998.htm. [Accessed 27 May 12]

Cloud computing. 2012. Cloud computing. [ONLINE] Available at:http://www.contrib.andrew.cmu.edu/~madhurim/cloud%20computing.html. [Accessed 29 May 2012]. .

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by
sushanta shakya
ID:1001666