Cloud Computing

**1.Executive Summary**

Cloud computing is defined as “a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal effort or service provider interaction.”[3]  Cloud computing is the long-held belief of utility computing.

This paper describes elements of cloud computing including the five essential characteristics, core technologies, delivery models and deployment models.  Several fundamental models offered in cloud computing consist of Software-as-a-Service, SaaS, Platform-as-a-Service, PaaS, and Infrastructure-as-a-Service, IaaS.  The models can be used in public, private, hybrid or community clouds.

We describe in this paper, albeit not a complete list, advantages and disadvantages of organizations adopting or migrating to cloud computing.  Cost savings tops the list for cloud advantages.  As organizations need to invest little to no up-front capital to use cloud computing.  Topping the list for disadvantages of cloud computing is security issues.  Providers are unable to ensure the location of an organization’s data, making data transmission security, application security and data storage security obstacles in implementing cloud computing.

Finally, we discuss managerial considerations for organizations to examine when contemplating cloud computing.  Large enterprise corporations seem to be at a greater disadvantage to migrating to cloud than do start-up, small or medium sized organizations.  Large enterprise corporations may be better to adopt hybrid clouds.  Whereas these corporations can keep data sensitive material in their private cloud, yet put non-critical data in a public cloud.  For start-up, small or medium sized organizations, cloud computing could bring great advantages that these companies could not previously realize due to budget constraints.  Cloud computing would allow small or medium sized companies to explore options that may not have been available otherwise with their IT budget.

In summary, we argue that there is no clear set of rules or guidelines for organizations to follow enabling them to make a clear decision of migrating or adopting cloud computing.  The different configuration of cloud computing be it public, private or hybrid will be on a company-by-company consideration.

**2. Introduction**

Our goal in this paper is to clarify terms, provide some of the more cited advantages and disadvantages in cloud computing and discuss some of the managerial considerations and types of businesses fit for cloud computing or migration to cloud computing.

Several fundamental models offered in cloud computing consists of Software-as-a-Service, SaaS, Platform-as-a-Service, PaaS, and Infrastructure-as-a-Service.  IaaS is virtualized hardware.  As with other services IaaS is scalable, no investment in hardware is necessary, it has utility style costs and it is location independent.  PaaS provides a platform which allows developers to create software applications using tools provided by cloud suppliers.  PaaS allows for software support and management services.  Developments of applications are made possible for non-experts and it is flexible and adaptable in that users can pick and choose only the features and tools they desire.  SaaS is a pay-per-use access to software applications over the internet.  This is probably the most thought of service applying to cloud computing.  Access can be obtained from any location as long as the internet is available and the applications are cross-device useable.  These models can be used in public, private, hybrid or community clouds.  Public clouds are accessible by the public in general; private clouds are internal datacenters of an organization and not accessible to the public.  Hybrid clouds are a mixture of public and private clouds which allows for distribution of data and information.  Organizations can keep certain critical data within their control in the private cloud, yet allow for other data to be run in a public cloud.  Community clouds are used and controlled by a group of organizations that share interest.

We next discuss the advantages and disadvantages of organizations adopting or migrating to cloud computing.  Cost savings are the number one advantage cited in the literature.  Organizations need to invest little, to no up-front capital to use cloud computing.  Organizations also save on building space, cooling systems and utility expenses.  Because this type of computing is a pay-per-use service, organizations are only paying for services they use.  Other advantages include faster time to market of products, less to manage internally, scalability and flexibility of services when needed and potential increases in customer satisfaction.  The most cited disadvantage of cloud computing is security concerns.  Providers are unable to ensure the location of an organizations data, making data transmission security, application security and data storage security obstacles in implementing cloud computing.  Along with security, regulation of data can become a legal risk if data is stored in a country other than that of its owner.  Other disadvantages include outage of service, lack of standardization which leads to a lack of interoperability and portability, pricing models and disaster recovery.

Finally, managerial considerations for adopting or migrating to cloud computing are examined.  We find that large enterprise corporations are at a disadvantage to adopting or migrating to cloud computing.  However, they may find advantage adopting a hybrid cloud.  Data sensitive material would be housed in the organization’s private cloud and non-critical data accessible through a public cloud.  Cloud computing could bring great advantages to start-up, small or medium sized organizations.  Because of low or no initial up-front costs, these companies could realize computing advantages equivalent to large enterprise corporations.

There is no clear set of guidelines for an organization to adopt or migrate to cloud computing.  The decision needs to occur on a case-by-case basis.