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Full Project – Cloud computing – effect on enterprises

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CHAPTER ONE

1.0 INTRODUCTION

Cloud computing has become one of the most talked about technologies in recent times and has got lots of attention from media as well as analysts because of the opportunities it is offering. The market research and analysis firm international data corporation (IDC), an American market research, analysts and advisory firm, specializes in information technology, telecommunications, and consumer technology, software development. It has been estimated that the cost advantages of cloud computing to be three to five times for business applications and more than five times for consumer applications. According to a Gartner press release from June 2008, cloud computing will be “no less influential than e-business” (Gartner, 2008). The term cloud computing was given prominence first by Google’s CEO Eric Schmidt in late 2006 (maybe he coined the term). So the birth of cloud computing is very recent phenomena although its root belongs to some old ideas with new business, technical and social perspective. From the architectural point of view cloud is naturally build on an existing grid based architecture and uses the grid services and adds some technologies like virtualization and some business models.

1.1 BACKGROUND OF THE STUDY

Enterprises have been striving to reduce computing costs and for that reason most of them start consolidating their IT operations and later using virtualization technologies. For the good of the enterprises there is a new technology to help them in this i.e. Cloud computing. Cloud computing claims to take enterprises search to a new level and allows them to further reduce costs through improved utilization, reduced administration and infrastructure cost and faster deployment cycles. Cloud computing is a term used to describe both a platform and type of application. As a platform it supplies, configures and reconfigures servers, while the servers can be physical machines or virtual machines. On the other hand, cloud computing describes applications that are extended to be accessible through the internet and for this purpose large data centres and powerful servers are used to host the web applications and web services. The cloud is a metaphor for the internet and is an abstraction for the complex infrastructure it conceals. There are some important points in the definition to be discussed regarding cloud computing. Cloud computing differs from traditional computing paradigms as it is scalable, can be encapsulated as an abstract entity which provides different level of services to the client, driven by economies of scale and the services are dynamically configurable.

There are many benefits stated of cloud computing by different researchers which makes it more preferable to be adopted by enterprises. Cloud computing infrastructure allows enterprises to achieve more efficient use of their IT hardware and software investments. This is achieved by breaking down the physical barrier inherent in isolated systems, automating the management of the group of the systems as a single entity. Cloud computing can also be described as ultimately virtualized system and a natural evolution for data centres which offer automated system management. Enterprises need to consider the benefits, drawbacks and the effects of cloud computing on their organizations and usage practices, to make decision about the adoption and use. In the enterprise, the adoption of cloud computing is as much dependent on the maturity of organizational and cultural (including legislative) processes as the technology, per se”.

Many companies have invested in cloud computing technology by building their public clouds, which include Amazon, Google and Microsoft. These companies are often releasing new features and updates of their services. For instant Amazon Web Services (AWS) released a Security and Economics centre on their website to have academic and community advice regarding these issue. This shows that there are still lots of doubt about the coast and security for enterprises to adopt cloud computing. Hence, the issue of economics and security in cloud computing for enterprises must be researched. As large organizations are inherently complex hence, it is very important for cloud computing to deliver the real value rather than just be a platform for simple tasks such as application testing or running product demos. For this reason, issues around migrating application system to the cloud and satisfying the needs of key stakeholders should be explored. The stakeholders include technical, project, operations and financial managers as well as the engineers who are going to be developing and supporting the individual systems. For enterprises economics or cost factor is important but at the same time cloud computing effects on enterprises customer relationships, public image, flexibility, business continuity and compliance are of same importance. Hence, enterprises need to understand how cloud computing affects all these however; we shall discuss the following specific issues in the research.

Ø The economic and organizational implications of the cost model in cloud computing.

Ø The data security, availability and privacy issues that cloud computing raises.

1.2 STATEMENT OF THE PROBLEM

The problem, which this research seeks to examine, is the cloud computing effect on enterprises.

The research aims at finding out whether enterprises are in support or against the issue of cloud computing.

1.3 AIMS AND OBJECTIVES OF THE STUDY

The aim of the research is to find out the benefits and drawbacks in regards with data security and data availability; enterprises can have by the use of cloud computing for the implementation and management of their information system and also to make recommendations.

1.4 HYPOTHESIS / RESEARCH QUESTION

As cloud computing is one of the most talked about technologies nowadays and it has great importance in enterprises because of the cost and computational promises it offers. We will conduct the research on the issue of cloud computing and enterprises. Within this research, the impact of cloud computing on the enterprises is investigated. Basically enterprises consist of the layers of business, which describes the business. The business layer is supported by data and data is supported or maintained by an application.

1.5 SIGNIFICANCE OF THE STUDY

There are many benefits stated of cloud computing by different researchers which makes it more preferable to be adopted by enterprises.

1. Cloud computing infrastructure allows enterprises to achieve more efficient use of their IT hardware and software investments.

2. Enterprises are achieved by breaking down the physical barrier inherent in isolated systems, automating the management of the group of the systems as a single entity.

3. This research may also help enterprises to be able to find solution to their problems.

1.6 SCOPE OF THE STUDY

The research is to be carried out in the University of Maiduguri units, particularly within the Computer and Information Communication Technology Center and Management Information System Unit University of Maiduguri.

1.7 DEFINITION OF TERMS

The term Cloud Computing refers to both the application delivered as services over the internet and the hardware and systems software in the datacenters that provide those services. The services themselves have long been referred to as software as a service (SaaS). The datacenters hardware and software is what we will call a cloud. When a cloud is made available in pay-as-you manner to the general public, we can call it a public cloud; the service being sold is utility computing. We use the term private cloud to refer to internal datacenters of a business or other organization, not made available to the general public. Thus, cloud computing is the sum of software as a service (SaaS) and utility computing, but does not include private cloud.

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