UNIVERSITY OF

TECHNOLOGY,
Business Information
MAURITIUS
Technology

COURSE: Master of Business Administration

(Project Management) Year1 Semester 1
MODULE: Business Information Technology

CODE: MMIS 5208

LECTURER: Mr C K SUNGKUR

DATE OF SUBMISSION: 19 November 2016

Submitted by:

UJOODHA Yashveer ID: 160870

Yashveer UJOODHA ID: 160870 MBA Project Management

Table of Contents
1. Introduction ......................................................................................................... 3

2. Cloud Computing ................................................................................................ 3

3. The Evolution to Cloud Computing...................................................................... 4

4. Features of Cloud Computing ............................................................................. 4

5. Cloud Computing Architecture and Services ....................................................... 5

5.1 Software as a service (SaaS) ........................................................................... 6

5.2 Platform as a service (PaaS) ............................................................................ 6

5.3 Infrastructure as service (IaaS) ......................................................................... 7

6. Cloud Computing Deployment Models ................................................................ 8

6.1 Public Cloud...................................................................................................... 9

6.2 Private Cloud .................................................................................................... 9

6.3 Hybrid Cloud ..................................................................................................... 9

6.4 Community Cloud ........................................................................................... 10

7. Benefits and Risks of Cloud Computing ............................................................ 12

7.1 Cloud Computing Benefits .............................................................................. 12

7.1.1 Flexibility and Ubiquity ............................................................................. 12

7.1.2 Low Cost and More Efficiency .................................................................. 12

7.1.3 Security Gain............................................................................................ 12

7.1.4 Reliability .................................................................................................. 13

7.2 Cloud Computing Risks .................................................................................. 13

7.2.1 Internet Dependency ................................................................................ 13

7.2.2 Difficulty in creating Hybrid Systems ........................................................ 13

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Yashveer UJOODHA ID: 160870 MBA Project Management

7.2.3 Centralisation ........................................................................................... 14

7.2.4 Data Integrity/Security .......................................................................... 14

8. Conclusion ........................................................................................................ 14

9. References ........................................................................................................ 15

List of Figures
Figure 1: Evolution to cloud computing ...................................................................... 4

Figure 2: Cloud computing services ........................................................................... 6

Figure 3: Value visibility to end users - Cloud computing services ............................. 7

Figure 4: Cloud computing deployment models ......................................................... 8

Figure 5: Cloud computing service models .............................................................. 11

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Yashveer UJOODHA ID: 160870 MBA Project Management

1. Introduction
With traditional desktop computing, we usually run copies of software programs on
our own computer. Documents that we create are normally stored on our own PC.
Although these documents can be retrieved from other computers on the same
network, they cannot be accessed by computers outside the network.

With cloud computing, the software programs that a person or an organization uses
are not run from a personal computer, but are rather stored on servers accessed via
the Internet.

If a computer crashes, the software will be still available for others to use. The same
mechanism goes for the documents one creates; theyre stored on a pool of servers
accessed via the Internet. Anybody with authorization can get access to the
documents as well as edit and cooperate on those documents in real time. Unlike
traditional computing, this cloud computing model is not PC-centric in fact it is
document-centric.

It has been seen that there is an exponential acceleration in the adoption of cloud
computing and cloud services. It is mentioned as one of the top 5 technology trends
to watch in the forthcoming 5-6 years. So everyone is talking about it. Therefore, it
is a catchword in todays world.

2. Cloud Computing
Cloud computing is a kind of computing that relies on sharing computing resources
rather than having local servers or personal devices to handle applications.

Cloud computing is a new way of conveying computing resources. However, it is not

a new technology. Computing services ranging from data storage and processing to
software, such as email handling, are now available instantaneously, commitment-
free and on demand. Since we are in a time of belt-tightening, this new economic
model for computing has found fertile ground and is seeing massive global
investment.

In other words, services and solutions that are delivered and consumed in real time
over the internet are cloud services. For example, when documents, photos or data

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Yashveer UJOODHA ID: 160870 MBA Project Management

are stored online, using e-mail, social networking websites or any online storage
facilities, cloud technology is behind this work. Hence, cloud computing is a delivery
model of computing services over the internet. It enables real time development,
deployment and supply of a wide range of products, services and solutions. Cloud is
an allegory for internet.

3. The Evolution to Cloud Computing

The major development ranging from the main computing types to cloud computing
is shown in the figure below.

Figure 1: Evolution to cloud computing

Source: http://images.slideplayer.com/22/6411718/slides/slide_5.jpg

4. Features of Cloud Computing

Cloud computing has the following characteristics:
Highly abstracted resources
Rapid elasticity
o We can go from 5 servers to 50 or vice-versa

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Yashveer UJOODHA ID: 160870 MBA Project Management

Near instant scalability and flexibility

Near instantaneous provisioning
Shared resources (hardware, database, memory, etc.)
service on demand, usually with a pay as you go billing system
Programmatic management (e.g., through WS API)
Measured service
o You pay for what you use
On-demand self-service
Ubiquitous network access
o You can access the cloud from anywhere, at any time and on any
device
Location-independent resource pooling
o You work with virtual machines that could be hosted anywhere

5. Cloud Computing Architecture and Services

There are two fundamental mechanisms of cloud computing architecture known as
the front end and the back end.

The front end is the part seen by the client, i.e. the computer user. This
includes the clients network and applications used to access the cloud via a
user interface such as a web browser.

The back end of the cloud computing architecture is the cloud itself,
comprising various computers, servers and data storage devices.

There are three categories of cloud computing services:

1. Software as a service (SaaS)

2. Platform as a service (PaaS)

3. Infrastructure as a service (IaaS)

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Yashveer UJOODHA ID: 160870 MBA Project Management

Figure 2: Cloud computing services

Source: http://image.slidesharecdn.com/cloudcomputing-130620020720-
phpapp01/95/cloud-computing-overview-for-business-people-8-638.jpg?cb=1371694062

5.1 Software as a service (SaaS)

It is a software offered by a third party provider, available on demand, usually via the
Internet configurable remotely. Typically, these services are available to the
customer for a fee, pay-as-you-go, or a no charge model. The customer accesses
the applications over the internet.

Some examples of SaaS are online word processing and spreadsheet tools, CRM
services and web content delivery services (Salesforce CRM, Google Docs, etc).

5.2 Platform as a service (PaaS)

These types of service allow customers to develop new applications using APIs
deployed and configurable remotely. The platforms offered include development
tools, configuration management, and deployment platforms. PaaS enables
deploying applications without the cost and complexity of investing and handling the

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Yashveer UJOODHA ID: 160870 MBA Project Management

principal hardware and software where the applications are hosted. The customer
uses their own applications with PaaS.

Examples of PaaS are Microsoft Azure, Force and Google App engine.

5.3 Infrastructure as service (IaaS)

This service model provides virtual machines and other abstracted hardware and
operating systems which may be controlled through a service API. The service
provider owns the infrastructure equipment. Moreover, the housing, running and
maintaining it lies on the responsibility of the service provider. The customer
typically pays on a per-use basis.

In other words, the service provider offers capacity for rent basically hosted Data
centers and servers. There is an evolution of website and server hosting services
providing servers and virtual private servers.

Examples include AT & T (Hosting the Storage), Amazon EC2, Rackspace Cloud,
Terremark Enterprise Cloud and Windows Live Skydrive.

Figure 3: Value visibility to end users - Cloud computing services

Source: https://qarea.com/sites/default/files/images/articles/IaaS_PaaS_SaaS.jpg

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Yashveer UJOODHA ID: 160870 MBA Project Management

6. Cloud Computing Deployment Models

Cloud hosting deployment models epitomize the exact category of cloud
environment and are mainly distinguished by the proprietorship, size and access. It
indicates the purpose and the nature of the cloud. Most of the organisations are
willing to move to cloud technology as it reduces the capital expenditure and controls
operating cost. It is necessary to know the four deployment models in order to know
which one to use.

There are four main computing deployment models or clouds, namely:

1. Public model

2. Private model

3. Hybrid model

4. Community model

Figure 4: Cloud computing deployment models

Source: http://www.edureka.co/blog/wp-content/uploads/2013/03/Types-of-Cloud-
deployment-models2.jpg

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Yashveer UJOODHA ID: 160870 MBA Project Management

6.1 Public Cloud

It is a type of cloud hosting in which the cloud services are delivered over a network
which is open for public usage. This model is a true representation of cloud hosting;
in this the service provider renders services and infrastructure to various clients. The
customers do not have any notion and control over the location of the infrastructure.

Public cloud is better suited for business requirements which requires managing the
load; host application that is SaaS-based and manage applications that many users
consume. Due to the decrease in capital overheads and operational cost this model
is cost-effective. The dealer may provide the service free or in the form of the
license policy like pay per user. The cost is shared by all the users, so public cloud
profits the customers more by achieving economies of scale. Public cloud facilities
may be availed free. An example of a public cloud is Google.

6.2 Private Cloud

Private deployment model is also referred as internal cloud. The platform for cloud
computing is executed on a safe cloud-based situation that is protected by a firewall
which is under the governance of the IT department of the particular organization.
Private cloud allows only authorized users to get access, therefore, this gives the
organisation better and direct control over their data. It is hard to explain what
private cloud really constitutes because when it is classified according to the
services there are major discrepancies. The resources are provided from a distinct
pool to the private cloud services irrespective of the location of the physical
computers. Businesses or organization which are mission critical and have
unforeseen needs, usually go for private cloud. Problems with regards to security
can be avoided in a private cloud. However, private cloud may be subjected to
jeopardies in case of natural disaster and internal data theft.

6.3 Hybrid Cloud

Hybrid cloud is an amalgam of two or more cloud servers, i.e. public, private or
community cloud that is bound together but remain single entities. Benefits of the
various deployment models are offered in a hybrid cloud hosting. A hybrid cloud can
cross isolation and overcome limits by the provider. Hence, it cannot be solely
considered as public, private or community cloud. In a hybrid cloud, the resources

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Yashveer UJOODHA ID: 160870 MBA Project Management

are managed and provided either in-house or by external providers. It is a

configuration among two platforms where the workload interacts between the private
cloud and the public cloud as per the need and demand.

Normally, resources that are non-critical are retained in the public cloud that belongs
to a third-party provider while the assignments that are sensitive are housed within
the organization. For example, for an e-commerce website, hosted on a private
cloud that gives security and scalability, security is not a major fear for their e-
pamphlet site. Therefore, it is hosted on a public cloud which is more cost-effective
as compared to a private cloud. Businesses and organizations that have more
concentration on security and demand for their sole presence can implement hybrid
cloud as an effective corporate policy. Additional resources that may be required by
a particular application can be retrieved from the public cloud. This is termed as
cloud bursting and is offered by the hybrid cloud.

Huge data can be processed using hybrid cloud. Sales, businesses and various
data can be retained on a private cloud with which analytical queries can be initiated
over the public cloud as it is effective to meet the desired demand. Features like
security, flexibility and scalability consents the hosting of hybrid cloud. If one wants
to manage a few challenges like application program interface incompatibility,
network connectivity issues and capital expenditures, hybrid cloud would be the
optimal option for him.

6.4 Community Cloud

Community cloud model is a form of cloud hosting in which the setup is jointly shared
between many organisations belonging to a particular community. Examples are
banks and trading firms. Therefore, the setup is shared within the organisations
having the same computing apprehensions. Besides from forming part to the same
community, the community members generally share similar privacy, performance
and security concerns. The key purpose of these communities is to attain their
corporate related goals. A community cloud can be managed internally or externally
by a third party provider. Therefore, it can be hosted externally or internally. The
community cloud has cost saving capacity because the cost is shared by the specific
organisations within the community. Many organizations work on joint ventures,
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Yashveer UJOODHA ID: 160870 MBA Project Management

tenders and research. So, they need a centralised cloud computing ability to
manage, build and to implement similar projects. Thus, a community cloud is
suitable for such organisations and businesses.

Organisations have understood that cloud hosting has a lot of advantages. To work
on the optimum pace, selection of the right type of cloud hosting is needed for them.
Thus, they need to know their business and analyse their demands. Once the right
type of cloud hosting is selected, they can attain their business objectives without
great effort and they can channelize all their efforts to take those strategic steps that
will help their business to thrive.

Figure 5: Cloud computing service models

Source: http://cloudcomputingnet.com/wp-content/uploads/2015/05/Cloud-Computing-
Service-Models.jpg

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Yashveer UJOODHA ID: 160870 MBA Project Management

7. Benefits and Risks of Cloud Computing

Just like everything in life has its advantages and drawbacks, cloud technology also
does have its benefits and risks/ disadvantages.

7.1 Cloud Computing Benefits

Cloud computing offers a scalable online environment enables an increase in the
volume of work without influencing the system performance. Cloud computing also
provides significant computing ability and economy of scale that might not otherwise
be affordable, particularly for small organizations, without investing in IT
infrastructure. Some of the Cloud computing advantages are:

7.1.1 Flexibility and Ubiquity

Although cloud computing is dependent to the internet, it can indicate independence
from the office. Employees or staff can have access to data from servers outside the
office and not physical or wired connections in-house servers. Thus creating a more
elastic and mobile work lifestyle for organizations. In other words, data can be
accessed anywhere and at any time. This is called ubiquity.

Apart from providing flexibility for workers, cloud computing also provides flexibility in
applying changes and new technologies without risk and high cost.

7.1.2 Low Cost and More Efficiency

Cloud computing provides a low barrier of entry and pay-per-use model making it
very adaptable. It is scalable for large businesses and inexpensive for small ones.
Since a huge volume of resources is not a must for everyone, they can be hire out to
other clients, and the cost can be divided among those clients. Thus a cloud
provider can deliver an unlimited amount of resources to many users. Organizations
can therefore focus further efforts elsewhere and be more efficient due to the
reduced cost and time.

7.1.3 Security Gain

New companies, small businesses with less know-how about security technology are
relieved with the advantage provided by cloud computing, i.e. security. The cloud
provider already offers the hardware and knowledge for the most current security

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measures. It is obvious that when implementing a new data system serious risks
arise, which have to be considered, but it is also clear that the benefits of cloud
computing can be factors that help business grow, especially smaller ones.

7.1.4 Reliability
Cloud computing provides more reliability in comparison to in-house systems of
organisations due to the economies of scale. The provider is abler to give a 24/7
technical support and highly skilled experienced staff to manage the infrastructure at
its best condition and thus, the benefits will reach all their clients. Compare this to
each organization having a team of internal computer literate staff with different skill
set.

7.2 Cloud Computing Risks

As mentioned above, there are several benefits of cloud computing driving a secular
move to the cloud, among them cost-effective, short time to market, and increase in
employee efficiency. However, the security of data in the cloud is a fundamental
concern preventing many organizations to adopt cloud technology. Some of the
major drawbacks of cloud computing among others are:

7.2.1 Internet Dependency

Cloud computing is dependent on the internet. The most basic problem of cloud
technology is that internet connection to access the cloud is a must. This direct link
to the internet indicates that the system is prone to outages and service interruptions
at any time. This could occur in the middle of a task or transaction, meaning the
action could be delayed or lost entirely if time sensitive.

7.2.2 Difficulty in creating Hybrid Systems

This relates particularly to organizations dealing with sensitive information.
Organizations like government offices and financial institutions usually have their
own IT services and will not take their data offsite despite the benefits of efficiency
and performance. Therefore, these organizations will definitely not opt for hybrid
model.

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Yashveer UJOODHA ID: 160870 MBA Project Management

7.2.3 Centralisation
Organizations usually outsource data and application services to a centralised
provider. In cloud computing, as mentioned above, internet dependency is a
disadvantage due to outages. Centralised data can undoubtedly put another risk to
cloud technology as all clients will be affected if the providers service goes down.

7.2.4 Data Integrity/Security

The risk is already high with data hosted in-house. Therefore, it is more than
obvious that data offsite are even at higher risk. With data offsite, more channels for
attack are prone. The fact that data will be transferred more makes it easier to
be sniffed. Despite that technology is always improving and there are methods to
make better encryption of data, there will be always people who will never stop
improving their hacking skills.

8. Conclusion
Cloud computing is not totally reliable and has many risks. However, the cloud
model might be adequate to organizations which are concerned more about costs
than the value of their data. It is predominantly persuasive for organizations with no
confidential data, sensitive data or compliance requirements. Therefore, a
risk/benefit analysis should be carried out before handing personal data to a third
party.

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9. References
1. Kenneth C. Laudon, Jane C. Laudon, Management information systems,
managing the digital firm, 12th Edition (Upper Saddle River, New Jersey:
Pearson Prentice Hall, 2012), 170.
2. Epsilon Data Breach Highlights Cloud-Computing Security Concerns.
2016. Epsilon Data Breach Highlights Cloud-Computing Security Concerns.
[ONLINE] Available at: http://www.eweek.com/c/a/Security/Epsilon-Data-
Breach-Highlights-Cloud-Computing-Security-Concerns-637161. [Accessed
13 November 2016].
3. Canadian Federation of Independent Business Powered by Entrepreneurs.
2016. Cloud computing: benefits and risks for your business. [ONLINE]
Available at: http://www.cfib-fcei.ca/english/article/4242-cloud-computing-
benefits-and-risks-for-your-business.html. [Accessed 11 November 2016].
4. What is Cloud Computing?. 2016. What is Cloud Computing? | Cloud
Deployment Models. [ONLINE] Available
at: http://whatiscloud.com/cloud_deployment_models/index. [Accessed 04
November 2016].
5. Understanding the Cloud Computing Stack: SaaS, PaaS, IaaS.
2016. Understanding the Cloud Computing Stack: SaaS, PaaS, IaaS.
[ONLINE] Available at: https://support.rackspace.com/white-
paper/understanding-the-cloud-computing-stack-saas-paas-iaas/. [Accessed
06 November 2016].

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