Benefits and Issues of Cloud Computing

Cloud ComputingMany people believe that the development of cloud computing is one of the most promising directions for improvement in Information Technology, as it has a great potential in saving money for small and big businesses around the globe. In the first part of this essay we are going to talk about the technology itself, and then we are going to discuss the real life successful implementations and predictions.

First, cloud computing is the technology of distributed data processing in which computer resources and capacity are provided to the user as an online service. The essence of cloud computing is to provide end users with remote access to dynamic computing resources and applications (including operating systems and infrastructure) through the Internet. Development of the online services had arisen due to the need for the software and digital services, which could be operated from inside a company, and would be less expensive and efficient through savings in the scale. The term “cloud computing” is applicable to any service provided over the Internet.

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Cloud computing is a powerful approach for resource calculations and it is becoming more and more popular every day. Nowadays, almost every user has an opportunity to use online applications without installing them on the client-desktop, such as e-mail or file hosting services.Until now, the software market had a fairly simple vector of development. Programmers developed applications , which were then distributed in the usual way – on media – and installed on the computer.

For the program to work, the PC must meet certain system requirements necessary to indicate the performance of the processor, RAM, free space on the hard disk , etc. At the same time, the Internet was developing as well, for instance, server hardware, which took care the work load of the websites. At some point, it turned out that it is possible to combine the processing power to support software services similar to those that are operable by any individuals, for example, word processors and spreadsheet . Thus began the history of “cloud computing ” in the sense in which that term is used in recent years.

Since the word “cloud” is very broad, it makes sense to classify cloudsaccording to some criterion. According to Wikipedia “cloud computing providers offer their services according to several fundamental models: infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) where IaaS is the most basic and each higher model abstracts from the details of the lower models. ” Moreover, the same cloud can be public or private. Public cloud services can be used by anyone, where the access to a private cloud is only be given to a certain number of people or organizations.

At the current moment , Amazon Web Services is one of the most popular and largest provider of the public cloud. There are hundreds of companies who are using Amazon Web Services right now. Among them are companies like NETFLIX, Discovery Communications, SEGA and many others.When it comes to real application of the cloud technology, the first thing that pops up is the Brickfish, a software company which specializing in social media marketing.

They were extending to the North and decided to do main restructuring of a company. They transferred their headquarters office located in San Diego to Chicago. During that time they realized that it is easier to move their data center in to a cloud environment, than to actually move their on-premises servers. On top of that, there was an opportunity to save money.

As mentioned by, “Renting servers…

still cost the company about $47,000 to $52,000 a month”, which did not represent any significant change of the previous budget expenses, however, for the next year the Company managed to discover more options and come up with a new solution. The answer was to “move the company’s entire technology stack” to the cloud, which reduced their cost of “hosting and maintaining boxes” from $700,000 to $200,000. This example alone shows half a million dollars of reduction in expenses by moving from on-premises equipment to a cloud. This becomes possible by transferring costs, to the third party company, of electricity on top of troubleshooting, supporting, updating, and maintaining the physical servers.

Another great example is the Federal government IT department. Feds are working on their “IT Transformation initiative”, which is projected to save $100 million dollars annually by transferring their permanent and temporaryemail records to a cloud.Cloud computing appears to be fast, reliable, inexpensive and elegant solution for many companies and even the government agencies. However, it comes at a price.

There are a few ongoing issues that the clouding systems have. One of the main problems is privacy and security. When data travels back and forth from the company to the cloud, there is a higher chance of intercepting it. Also known as “man in the middle attack”.

On top of that, it brings up questions like: insurance, legal aspect of ownership, and availability. Among these topics the availability issue is being discussed the most. It is not always the best idea to “put all eggs in one basket”.Works CitedBoisvert, Michelle.

“To Find Cloud Cost Savings, All You Need Is a Little Patience.” To Find Cloud Cost Savings, All You Need Is a Little Patience. N.p.

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Kramer, Hilary. “Washington Moves Into The Cloud: Saving Money And Securing Data.”Forbes. Forbes Magazine, 08 July 2013.

Web. 29 Sept. 2013.Narasimhan, Balakrishna.

“Cloud Computing Savings – Real or Imaginary? – Appirio.”Appirio Cloud Computing Savings Real or Imaginary Comments. Appirio, 16 Apr. 2009.

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Benefits and Issues of Cloud Computing. (2017, Mar 03). Retrieved from