The Benefits of Cloud Computing for Information Systems

Question

The Benefits of Cloud Computing for Information Systems: Discuss the benefits of cloud computing for information systems. Discuss how cloud computing can improve scalability, agility, and cost-efficiency.

Answer

Introduction

1.1 Definition of Cloud Computing Cloud computing is Internet-based computing, whereby shared resources, software and information, are provided to computers and other devices on-demand, like the electricity grid. With cloud computing, sharing of resources can be achieved at a large scale. This is because access to the cloud is quite cheap, generally some simple PC is required and there is little or no upfront cost. This type of distributed system is by nature loosely coupled and consumers are not aware of the physical location of the resources. This has a drawback of security and compliance issues because data are usually being sent to a certain cloud provider. But we have mentioned that cloud computing itself is a solution to cost effective data security. Now if cloud computing can provide better solutions to security and compliance issues, it is now a cost effective solution for information systems. 1 2 This idea itself is well suited for SMEs who are unable to afford much on information systems. This is because the applications are not too complex and the resources required are minimal. But it is known that information systems are an intertwine of application to data. If we refer back to the second benefit of cloud computing which is “availability of applications without installation”, it can save cost and time to organizations as they outsource the IT to their application provider. Any requirements to applications can be done at a faster rate. Step by step cloud computing is a definitely a future for information systems.

Data and storage security have been a chief headache for companies. Enterprises spend a mammoth percentage of their budget to maintain data safety. The cost has been reducing their profits by some percent. Even in the case of making data “mobile” so that they can operate on it from different location, it would cost them considerably. The solution is here in cloud computing. Data storage, security maintenance will be handled by the cloud computing service providers. It will effectively and considerably reduce the cost of maintaining data security as the data will be in the hands of the providers. Now making the data available from any location has a cost which is due to software requirements which differ from system to system. By application of cloud computing the data can be accessed from a web browser with the same user interface. This will be cost effective as it cuts down the cost of purchasing software with the same user interface. It will allow the data to be mobile without incurring any addition costs. Cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance. IT can also adjust the number of users dynamically through automation and it is available any time anywhere as long as there is an internet connection. By making the system off-site, the providers will be able to maintain the systems at a better rate for its clients. This is far better compared to an in-house IT which at times is not reliable. Now if cloud computing can provide maintenance free IT and low cost data security and data mobility, it within itself is a definite cost effective solution for information systems.

1.1 Definition of Cloud Computing

The term cloud computing has become a standard in today’s ever-growing technological society. It refers to using a network of remote servers (referred to as the “cloud,” which we can only assume is a metaphor) hosted on the internet to store, manage, and process data, rather than a local server or a personal computer. This has been quite a large shift in how things are done, as now we farm out these processes to third parties, accessing them through the internet rather than handling them on a personal device. One of the big reasons this has become so popular is the fact that it allows for much more efficient computation by centralizing the data storage, processing, and bandwidth. This also changes what kind of hardware we need to handle these tasks, taking the strain off of our very rapidly outdated personal devices and putting it on the service we are connecting to. It has become pervasive to the point where nearly every form of service you will use online is hosted in a cloud structure, not to mention any high-level data storage and retrieval for personal or professional means. This is quickly becoming the model for modern data computing.

1.2 Importance of Information Systems

Cloud computing can provide a new platform for deploying information systems. Traditionally, information systems would be deployed on an in-house infrastructure. Cloud computing allows information systems to be deployed at a reduced cost and with increased accessibility. Cloud computing provides scalable resources and encourages information systems with high agility. These benefits relevant to cloud computing can be especially useful to small-medium sized companies. Many small-medium sized companies often lack the infrastructure required to deploy certain information systems. High infrastructure costs and investment risk may deter a company from developing an effective information system. By exploiting cloud resources, companies can invest in only what they need at the present moment. This can reduce the investment risk and a pay-as-you-go pricing model can prove to be cost effective. Data storage and management are two areas of importance to deploying information systems. With cloud resources, relevant data can be stored using minimal effort with increased accessibility. Data can be easily managed and maintained with the resources available and cloud providers would ensure a high level of data durability.

Information systems are a key part in most organizations today, due to the importance of the data held and the information required. If the information systems are not up and running, or do not hold the necessary data required, this can have a massive effect on the running of the organization, or even affect clients and external organizations. Information systems are a strategic asset to any organization. They are a necessity required to gain an edge in the industry for which the organization is a part of. Decision making is vital in today’s fast moving global economy. It is essential that top managers and executives have the correct information at hand when making decisions in order to ensure success. A good information system will give various levels of management the information required to make the most effective decision. Storing data is a more efficient and effective method when using information systems. Data can be stored in an electronic form and retrieved when needed, reducing time and effort. Data can be stored for future use or to hand to someone else. Data storage is especially useful to professionals and knowledge workers. It is a known fact that throughout every industry and every company there is a plethora of information that is fed to them. Using information systems to sift through this information is valuable in extracting the bits of data that are actually needed in order to carry out an activity. This can save a lot of time and frustration from having to try and figure out what information is relevant and what is not.

Scalability Benefits

2.1 Increased Flexibility

2.2 Resource Optimization

2.3 Elasticity in Resource Allocation

Agility Benefits

3.1 Rapid Deployment of Applications

3.2 Easy Collaboration and Integration

3.3 Streamlined Development and Testing Processes

Cost-Efficiency Benefits

4.1 Reduced Capital Expenditure

4.2 Pay-as-You-Go Pricing Model

4.3 Lower Maintenance and Upkeep Costs

Security and Data Protection

5.1 Enhanced Data Backup and Recovery

5.2 Robust Security Measures

5.3 Compliance with Data Regulations

Performance Optimization

6.1 High Availability and Reliability

6.2 Improved Performance Monitoring and Optimization

6.3 Load Balancing and Auto-Scaling Capabilities

Accessibility and Mobility

7.1 Anytime, Anywhere Access

7.2 Device Independence

7.3 Seamless Integration with Mobile Devices

Integration with Existing Systems

8.1 Interoperability with On-Premises Infrastructure

8.2 Legacy System Modernization

8.3 Data Migration and Integration Strategies

Case Studies and Success Stories

9.1 Organizations Benefitting from Cloud Computing

9.2 Real-World Examples of Improved Information Systems

9.3 Lessons Learned and Best Practices