Cloud Computing trend in Microsoft Office

Introduction and Motivation

Cloud computing entail using the web as the potential source of network where various computers are connected. With the application of cloud computing, businesses are able to use networks without incurring many costs. This is because cloud computing consists of networks that are connected within networks. One of the advantages of cloud computing is there is no need for organizations to have dedicated that can be used for each computer. This is because all the computers employed in an organization can simply use one source of network. The source of networks is simple known as cloud computing.

Why Managers ought to choose cloud computing in organizations

Business Applications

With the use of cloud computing, organizations are now shifting from the tradition of having many a copy of Microsoft Office on each computer employed in various offices of the organization. This is because cloud computing enhances the use and application of free alternatives. A common alternative that many organizations are using nowadays is the Google Docs. Various web applications employed on the Google Docs is of significant advantage because it works from any online-connected PC and Data. Mostly, the applications are commonly stored on Google servers. However, it is also possible to download the application on various computers desktops (Mahmood & Richard 8).

Netbooks

   The use of netbooks enhances easy and compatible application of various business activities. Netbooks refers to a type of notebooks that are much slimmer and have minimal data storage. Some of the netbooks tend to have no data storage at all. The use and application of netbooks means that managers can be able to check and operate various business activities even where they are outside the organizations buildings (Kelly 55).

Computer server

   With use of cloud computing, organizations can no longer have the need of using a server to assist in the networking of their computers on various offices. This means that organizations have an added advantage of saving thousands of dollars on various issues like buying the required hardware and supporting the server.  Using cloud-computing means that organizations will be able to run its operations smoothly with no difficulties associated with buying of hardware (Kelly 111).

Email

   Receiving and sending of emails is another application that organizations have an increased advantage while using cloud computing (Hurwitz 157). This is because organizations can no longer have the need of running Office Outlook in order to get the applications of these services. With the use of cloud computing, organizations can simply shift to Yahoo and Gmail emails for easy application of this services (Hurwitz 157). All of the above information indicates that managers from various organizations ought to shift from the usage of hardware and servers and enhance the application of cloud computing. This is because the application of this technology has many added advantage (Hurwitz 157).

Brief Overview of Industry

Cloud computing is one of the industries that are growing rapidly in the technology and information field. The industry is growing in such a way that there have been various offerings that have emerged from the application of cloud computing. The offerings enhanced by the application of cloud computing include the following:

Infrastructure As –A-Service (IAAS)

   This tends to be the most forms or ways organizations are able to benefit from the application of cloud computing.  IAAS acts as a bunch of various storage capacities. The server is usually located out there in the cloud (McAfee 128). Most of the organizations or industries that use this particular offer tend to have the need of accessing the computing power but unfortunately, they do not need to be responsible of installing the system (McAfee 128).

Platform-As-A-Service (PAAS)

   This refers to another tie of which organizations tend to use the application of cloud computing. In this tie, organizations are able to develop their customs applications in such a way that the technology integrates with the existing applications. One of the advantages of this particular tie is that its environments can be equipped with various software development technologies. Examples of these software development technologies include Java, .Net and Python (McAfee 128). These technologies are of significant importance because they help customers to be able to start writing code quickly. After writing the code the vendor mages to host it and then he/she can be able to easily-make it available. This type of tie is currently the small segment in matters relating to cloud computing. Mostly, PAAS is used by organizations that are strongly established in the market. The companies prefer the use of PAAS because it is the best when outsourcing a piece of infrastructure (McAfee 128).

Software As-A- Service (SAAS)

   This is the largest and most common used part of the cloud computing technology. It entails the suite of applications that resides in the sky. This means that organizations no longer have the need to use the hard drive or the data center. An example of such a tie was the Salesforce.Com Customer Relationship Management Software (Furht & Armando 343).  This was one of the earliest developments of SAAS. Recently, there have been more developments where the productivity and collaboration of software has made significant changes. For example, this software has any many others has moved to offerings like Goggle Aps and Microsoft Office 365 (Furht & Armando 343).

All of the above cloud offerings share a number of similarities.  First of the similarities is that most of the customers rent them instead of buying them. This means that customers shift the IT from a capital expense to an operating one. The other similarity is that vendors are entitled to carry out various obligations related to cloud computing “beneath the hood”. This means that they are carry on various activities like maintenance, administration and trouble shooting. Another similarity is that all organization using this technology enjoys the ability to have fast and easy services.

Analysis

   In order to get a clear view of how organizations tend to benefit from cloud computing, there is a significant need to get the idea of marker analysis while addressing various aspects. These aspects include:

Cost

   There tends to be unclear information concerning the issue of cost in cloud computing. McAfee indicates that one of the reasons that make the issue of cost seem to be misguided is the fact most companies fail to spend large amount of money on technology. This means that the even with substantial changes in IT, there will not be a large difference on the budgets of these companies. The other aspect that makes the issue of cost tend to be unclear is that the economics relating to the issue of running various operations related to infrastructure tends to favor the cloud in future.

Reliability

   Cloud computing tends to be cheaper compared to any other technology employed in an organization related with this kind of technology. However, many organizations tend to be afraid of this move because of the fear of the unknown. Most managers tend to argue that they are comfortable with the infrastructure that they manage to control compared to cloud one of which they are not capable of controlling.

Security

The other issue related to analysis in regarding the issue of cloud computing is security. Many people tend to ask various questions related to the security of cloud computing. This is because transformations can be intercepted. Other security issues include viruses and other forms of malware that can be invade the system (McAfee 131). However, every organization ought to know that the only way that they cab be able to achieve a 100% security is having zero computers. This translates to the fact that the best issue to do in relation to security issues is controlling the individuals working on the computers.

SWOT ANALYSIS

In order to understand the analysis of cloud computing, the following information demonstrates SWOT analysis of SAVVIS, which is an information technology company that provides cloud services.

Strengths

• Strong Infrastructure: The Company has a strong network infrastructure that helps to support its operations (DATAMONITOR, 2010). For example, it has 28 data centers in three countries. The data centers that are located in America, Europe and Asia hold approximately 1.43 million square feet of gross raised floor (DATAMONITOR 5).
• Strong customer base: The Company has more than 2,500 unique customers. Among these customers, the Company serves about 30 clients of the top 100 companies (DATAMONITOR 6).

Weaknesses

• High Debt: The Company has indicated a high debt for some years during its operation. For example, by the end of its 2009, 2008, and 2007, the Company recorded a debt of $ 376.1 million, $ 360.2 million and $ 413.6 million respectively (DATAMONITOR 7). The company also reported a net loss of $ 20.8 million and $ 22 million in the year 2009 and 2008 respectively (DATAMONITOR 7).
• Dependency on Americas: The Company mostly depends on Americas for its revenues. For example, the Company recorded revenue of $ 721.7 million and 724.3 million in 2008 and 2009 respectively (DATAMONITOR 8). The company records a considerable proportion of about 84.2% and 82.8% from the American market (DATAMONITOR 7).

Opportunities

• Acquisition of fuse point: The Company managed to acquire acquisition of fuse point for approximately $ 121 million in cash in June 2010 (DATAMONITOR 8). Acquisition of fuse point helps the company to grow in other hosting market.

Threats

• Intense Competition: The Company operates on high competitive market. Most of the company’s competitors include IBM, HP and CSC (DATAMONITOR 9).

Conclusion

The above information offers significant information concerning cloud computing. It is evident that managers should prefer to shift to this technology because it has various advantages as explained above. Some of these advantages include business application. On this issue, it is clear that organizations tend to benefit from various applications offered on Google Docs and Microsoft 365. The other advantages of cloud computing that can be of significant help to organizations include applications of netbooks, computer server and emails. Moreover, a number of offering as addressed tend to be of significant importance to organizations. The analysis of cloud computing mainly associates with issues like cost, reliability and security. The example of SWOT analysis from SAVVIS Company indicates that cloud computing is an area that managers should not fear to venture. This is because the company has serves about 2500 customers. Some of the weaknesses associated with the company include the fact that it indicated a debt of $ 376.1 million, $ 360.2 million and $ 413.6 million respectively in the years 2009 to 2007. On the opportunities, the company indicates that it acquired acquisition of fuse point for approximately $ 121 million in cash in June 2010. According to the above information, managers ought to shift to cloud computing in order to increase efficiency of business operations.

 

 

Works Cited

“DATAMONITOR: SAVVIS, Inc.” SAVVIS Inc. SWOT Analysis (2010): 1-10.

Furht Bork & Armando Escalante. Handbook of Cloud Computing. New York: Springer,     2010. Print.

Hurwitz Judith. Cloud Computing for Dummies. Hoboken, NJ: Wiley Pub, 2010. Print.

Kelly James. Windows Netbooks: The Path to Low-Cost Computing. Berkeley, CA:    Apress, 2009. Print.

Mahmood Zaigham & Richard Hill. Cloud Computing for Enterprise Architectures. London: Springer, 2011. Print.

McAfee, Andrew. “What Every CEO Needs To Know About The Cloud.” Harvard    Business Review 89.11 (2011): 124-132.