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In your chapter 5 reading assignment, you learned all about the components of a traditional information technology infrastructure. This includes all the equipment, beyond your desktop or laptop computer, which allows you to communicate and share information with others. Some of this equipment includes cables, servers, network devices, telecommunications lines, data storage systems, and other devices. Many of these components are usually found behind the scenes in a data center.
There has been a developing trend in computing called Cloud Computing. As the text defines it, cloud computing is a service whereby organizations obtain their computer power and software applications via the internet. In other words, rather than investing in building an information systems infrastructure, some organizations have chosen to rent it from an outside company. In this case, the equipment sits in the cloud at the service providers data center. Amazon.com is an example of an outside company that offers cloud computing service. In fact, they are one of the major players in the space (yes, they’ve come a long way from just selling books). Also, the case study at the end of chapter five highlights Salesforce.com’s foray into this arena.
Here’s an interesting article on the subject (you may need to cut and paste this link into your browser)-

Some questions to ponder (remember to post references):
1) Why is cloud computing considered an “emerging” technology?
2) What technology advances have made cloud computing feasible?
3) What are the risks and benefits of cloud computing?
4) What types of organizations do you think can benefit most from this offering?
5) Why would a company like Amazon.com or Salesforce.com venture into this business?
6) What do you think the future holds for cloud computing?
Cloud computing
1) Why is cloud computing considered an “emerging” technology?
            Cloud computing is an emerging technology because it has changed the way Information Technology industry observes the vendor user relationships. This emergence is taking place at the union of three major trends including virtualization, service orientation and standardization through the internet. Cloud computing has brought about an emergence whereby early technology adopters are expected to abandon capital expenditures and in its place purchase a good proportion of their IT infrastructure as a service. What’s more, cloud services and cloud architecture is emerging because no widely accepted definition is in place, as it is evolving years on end. Originating from the days when companies used to share space on a single mainframe, Cloud computing has matured to the extent where it is now attracting an emerging market that seeks this rental model.
 2) What technology advances have made cloud computing feasible?
            Cloud computing is enabled by the emergence of internet as a platform over which delivery of applications and services is done. The software and datacenter that enable delivery of those services is the one referred to as a Cloud (Armbrust, et al., 2009). The users are now able to substitute their traditional data and applications with the remote Cloud, where they can access information in a pervasive and simple way.
3) What are the risks and benefits of “cloud” computing?
             The benefits of cloud computing includes achievement of economies of scale, since this technology ensures increased productivity with reduced cost per unit. In addition, Cloud computing reduces spending on technology infrastructure since the access to information is maintained with little upfront spending (it is based on demand). The other benefit is that it streamlines processes by allowing more work to be done in a cost-effective manner. Some of the most crucial risk issues include security risks, since the data is entrusted to a third party; and service level agreement and privacy agreement with the service provider.
4) What types of organizations do you think can benefit most from this offering?
            Since integration issues makes it difficult for larger business enterprises to benefit fully from cloud computing, the startup organizations that are experiencing cash problems are the ones that benefits most from this offering. Furthermore, larger and established companies have problems adopting cloud computing because they fear failure and slow delivery of data over a network.  They also fear leaking their confidential information to their rival company’s systems……………………………………………………………..
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