Case Study 4 Computing Takes Off in the Cloud
Marvin Del Mundo
October 28, 2018
Business Information Systems 1
1. What business benefits do cloud computing services provide? What problems do they solve?
By definition cloud computing is a system which uses a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. It is a efficient software technology that brings many benefits to a business. Some of these benefits include; storing large amounts of data and information, help build a large database, and rapidly find specific information. The cloud service providers take care of updating IT infrastructure and maintenances. This benefits smaller businesses since they don’t have to go through the trouble of building their own database. With these systems in place, new businesses can easier start their day to day operations. Cloud computing solves many problems within a business. More generally, they improve the work efficiency of a company. Amazon uses AWS, which helps in getting large amount of computing resources. Cloud computing allows Amazon to save costs, increase profit, and use the time saved to focus on other means of work.
2. What are the disadvantages of cloud computing?
Although there are many benefits with using cloud computing services, there are also multiple aspects as to why this online system could bring companies to a disadvantage. Security in the business must be taken very seriously and the latest and most reliable security systems should be placed to protect company information. Since the servers are online, businesses using cloud computing systems are more vulnerable if they get infiltrated or hacked. Another disadvantage to cloud computing is all the technical issues that might arise in the process. Power outages can be a factor when using this type of technology. Since this system uses the internet a high speed Wi-Fi connection must be used to ensure the business runs quickly and efficiently. Lastly, high usage of this platform results in high payment costs. Although paying for exactly what you use, portrays to be cheaper than paying a fixed price, overusing the program will result in higher costs. Especially when dealing with errors, IT infrastructures, and more, which involve a heavy usage of services. For these reasons larger companies will not benefit as much as smaller businesses when using cloud computing systems.
3. What kinds of businesses are most likely to benefit from using cloud computing? Why?
All companies that use cloud computing services can benefit from it one way or another, however, the businesses that gain more from these systems are information internet companies and smaller upcoming businesses. Internet companies such as, Google, Facebook, Amazon, and more can use these services to store large amounts of information and share it online on their websites. On the other hand, cloud computing allow smaller businesses to compete with larger companies who have large IT infrastructures. These new companies have the benefit of starting their operations directly on cloud since they don’t have any old information they need to transfer. Financially speaking, using cloud services is a great way for the new businesses to save money and measure their operation costs. Although it is clear that cloud computing is most beneficial to new companies, it is also true that if monitored usage properly, larger businesses can use these systems to further minimize costs and maximize profit.
Laudon, K. C., & Laudon, J. P. (2018). Management information systems: Managing the digital firm. Harlow, England: Pearson.