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Cloud Computing: IT Oversight and Governance

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Provide a discussion on the benefits and issues of cloud computing. When should a firm purchase its IT services from the Cloud? What is the implication for IT oversight and the firm's governance of those systems? If the firm moves to an Open Source environment, how will its data be secured and strategic advantage gained over the competition?

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Solution Summary

The response provides you a structured explanation of cloud computing and open source environment. It also gives you the relevant references.

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Benefits and issues of cloud computing:
The key benefits of cloud computing are the IT cost savings, lower capital and operational expenses, and zero in-house server storage and application requirements. Further, the managed service platform is more reliable and consistent than in-house IT infrastructure. Cloud service providers guarantee 99.99% availability(1). The other benefits of cloud computing are increased IT management, maintenance, and simplified service. Also, there is central administration of resources, vendor managed infrastructure, and guaranteed agreements. The time required for IT procurement is zero, The implementation is easy, there are no backend technicalities, and data can be accessed anywhere anytime. There is no hardware required, the cost per head is low, and the cloud provides flexibility for growth. With cloud computing there is fast, efficient, and accurate recovery of data and applications. Cloud computing, offers several payment options. These include one-time payment, pay-as-you-go and other options. The storage capacity of cloud computing is almost unlimited. The process of backup is simplified, there is automatic software integration, and easy access to information.

There are several issues with cloud computing:
The cloud computing system is prone to outages, technical issues, and requires a very good internet connection. Connectivity problems or network issues can leave a business stuck. Further, the businesses sensitive information is surrendered to a third party cloud service provider. The business can be hacked, exposed to external threats, and the privacy can be compromised. The other issues are that the business is now not in control of its information, it may not get all the features of an application, and the company may still have to maintain servers for backup/recovery. The cloud does not provide for redundancy(2). Further, bandwidth issues can lead to stoppage of business. If the internet connection is offline no data can be accessed. Cloud services because of their ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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