INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083

INFORMATION SYSTEM AND ELECTRONIC COMMERCEGST-5083

Case Title : Should Businesses Move to the

Cloud

No Name Student ID Program

1 SAYNUL ISLAM P13D092P MBA2 DATO NABIL ABD KADIR P000000P MBA3 MOHAMMAD GHAZALI MOHD

DAUDP000000P MBA

Group Members:


Background

These clouds of computing resources can be accessed on an as-needed basis from any connected device and location. The term "Cloud Computing" has appeared on the radar screen of information systems/information technology and business professionals over the last few years. The term "Cloud" refers to the Internet and "Computing" refers to the use of technology.

Cloud computing is a model of computing in which computer processing, storage, software, and other services are provided as a pool of virtualized resources over a network, primarily the Internet.


What business benefits do cloud computing services provide? What

problems do they solve?


Cloud computing has become a standard method of software operation for many businesses. It offers many significant advantages, such as a potential cost savings, ease of sharing data and applications, quickly find the desired information, automatic backups, reduced support and maintenance costs and improve the efficiencies.

In the case they give us an example which uses cloud computing at the marketplace that is Amazon. Amazon they use the Web services division (AWS) to get flexible computing power and data storage. This cloud application helps Amazon get a large amount of computing resources. According to the customer provided information, the AWS can help Amazon separate, allocate and arrange these resources. The AWS also can help Amazon’s computing resources. On the one hand, Cloud computing has brought a lot of convenience for Amazon, making them save costs and increase profits.


What are the disadvantages of cloud computing?


Using the cloud computing, the two major disadvantages are security and reliability. In this case study, Amazon's cloud service has shown significant outages in 2011 and 2012, causing serious consequences. There are many large sites are using Amazon's cloud computing, so Amazon's cloud computing failure will not only affect Amazon, but also spread to many other companies and have a great impact on them.

Another important issue is security. “By leveraging a remote cloud based infrastructure, a company essentially gives away private data and information, things that might be sensitive and confidential.


How do the concepts of capacity planning, scalability, and TCO apply to this case? Apply these concepts both to Amazon and to subscribers of its services.


Capacity planning is defined as the process of predicting when a computer hardware system becomes saturated to ensure that adequate computing resources are available for work of different priorities and that the firm has enough computing power for its current and future needs. Indeed, Amazon must plan its future needs to be capable of providing sufficient computing power for both AWS and Amazon retail services, a lack of which will result in the a fore mentioned rejection by subscribers.

Total Cost Ownership (TCO) is a financial estimate intended to help buyer and owners determine the direct and indirect cost of a product or system.


What kinds of businesses are most likely to benefit from using

cloud Computing? Why?


As information technology and social development, there have been more and more companies need cloud services. First, the information Internet companies need to use cloud services, such as Facebook, Google, Instagram, Blogspot, Ebay, etc. Because the cloud computing can store large information, and share the information

Microsoft and Google are focusing on ‘commodity cloud services:’ basic functionality limited customisation potential. Their business model is based on user bases of millions of users at very low prices. In fact, competition will be almost exclusively on price, which means levels of customer service and support may be low. The offerings from these companies can without question meet the needs of some businesses, but they shouldn’t be seen as a universal solution.

INFORMATION SYSTEM & ELECTRONIC COMMERCEGST-5083

The use of cloud computing utility has increased significantly in recent years and it appears to be a natural evolution of the data centre to execute computing and storage in a more scalable way. With such a significant increase, the market is growing quickly and more companies are providing new services with better features, including isolated services.

CONCLUSION

INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083

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