Cloud computing is the hypothesis of IT or information technology, which enables the access to the shared pool of several system resources and high level services (Dinh et al. 2013). All the clouds help in enabling organizations in focusing over the major companies and not on spending several resources on computer maintenance and infrastructure. Cloud computing also helps in avoiding or reducing the upfront infrastructure costs (Arora, Parashar and Transforming 2013). There are various advantages and disadvantages of cloud computing.
The following report will be outlining a brief discussion on the broad topic of cloud computing. The several merits and demerits of cloud computing for any business will also be provided in this report. The industry sector selected in the report is e commerce sites. The major factors for the implementation of cloud computing for management of information or data in those e commerce sites would also be mentioned here.
Cloud computing can be defined as the on demand delivery of the database storage, computing power, IT resources and applications by the platform of cloud services over Internet connectivity with the pay as you pricing approach (Fernando, Loke and Rahayu 2013). Cloud computing in the electronic commerce or e commerce web sites is responsible for allowing buying or selling various products and services on the connection of Internet. The several technologies that help e commerce sites to become successful like mobile technologies, supply chain management, online transaction processing, transfer of electronic funds, inventory management system, data collection system and many more (Hashem et al. 2015). Cloud computing comprises of various important and significant advantages and disadvantages within the industry sector of e commerce.
Cloud computing helps in providing the simplest way for accessing servers, databases, storage, and broader set of application services over the connectivity of Internet. The major operations of the business are well executed with the help of this cloud computing approach (Li et al. 2013). The information technology resources are extremely flexible and scalable when they are utilized in cloud computing. The cost of these specific resources are extremely lower and thus the cloud services platform help in providing rapid access to the information technology resources. The larger upfront investments are made on the hardware and software. The size as well as the type of the computing resources for the purpose of operating in the department of information technology in the business is provisioned by cloud computing. E commerce is the action of buying as well as selling of the products or services on the Internet (Garg, Versteeg and Buyya 2013). Cloud computing can be extremely effective for the electronic commerce web sites and thus makes the services much active and popular for each and every client of any business.
There are various important and vital advantages and disadvantages of cloud computing that makes the industry sector of electronic commerce extremely popular, efficient and effective (Rittinghouse and Ransome 2016). The major reasons for implementing cloud computing technology in the electronic commerce web sites are given below:
- i) Highly Scalable: The first and the foremost reason for the successful implementation of cloud computing is that it is highly scalable. Due to the higher scalability, this particular approach becomes extremely popular and even easy to handle. The cloud computing helps in enabling the electronic commerce application for catering to the altering demand as well as the scenarios (Xiao, Song and Chen 2013). This approach even allows in up scaling or downscaling these services as per the demands. The scalable architecture in the electronic commerce is provided by the cloud computing. The incoming time is increased by the approach of cloud computing within the e commerce web sites.
- ii) Higher Speed: The second important reason for the implementation of cloud computing in the e commerce web sites is the higher speed of the approach (Hashizume et al. 2013). Speed plays the most important role for making the clients extremely attracted to this particular web site of e commerce. If the client can shop or sell his or her products easily and promptly, he or she would be happier with the web site to greater extent and thus is termed as popular and efficient (Rittinghouse and Ransome 2016). Cloud computing is responsible for making the bandwidth greater and the storage and computational power much more.
iii) Reduction of Expenses: The third reason is that cloud computing helps in reducing the overall expenses of the electronic commerce web sites. This is mainly because it comprises of the facility of pay per use. It helps in enabling the consumption of all services as per the requirements (Jain and Paul 2013). Since the business grows in electronic commerce, the hardware and software infrastructure is not required to be invested. The expenses of the maintenance and the development of the information technology infrastructure are reduced to a greater extent.
- iv) Redundancy in the Cloud Services: The cloud-based architectures are extremely disaster tolerant. This cloud-based platform with the built in redundancy could be saved from the loss of data or information. The data is kept secured with the help of cloud computing and could be easily accessed as well (Yang and Jia 2013). Moreover, data backups are much easier with cloud computing and thus redundancy in the cloud services is possible within the electronic commerce web sites.
There are various advantages and disadvantages of cloud computing in the electronic commerce web sites (Wei et al. 2014). The major benefits of cloud computing are given below:
- i) Cost Efficiency: The most important and significant advantage of cloud computing is that it is cost efficient. The overall costs or expenses of the technology are much lower than the rest of the technologies. Cloud computing takes extremely less cost than the on premises technology (Dinh et al. 2013). These companies should not be storing the data or information in the disk anymore for the proper space availability and hence saving money or resources.
- ii) High Speed: The higher speed is the second advantage of cloud computing in e commerce web site. It allows to deploy the service promptly within fewer time. The easy deployment of the technology is possible only with cloud computing.
iii) Excellent Accessibility: The information could be easily stored and hence could be easily accessed from anywhere and at any time (Arora, Parashar and Transforming 2013). The higher accessibility and flexibility of the data within the technology of cloud computing for electronic commerce web sites.
- iv) Back up and Data Restore: The fourth advantage of cloud computing is that it helps to provide easy back up and data restoring. When the data is stored within cloud, easy backup and restoration of data is possible (Fernando, Loke and Rahayu 2013). The time is reduced and the business gets benefits.
There are some of the major disadvantages as well. The most significant disadvantages of cloud computing within the e commerce websites are given below:
- i) Higher Security Issues: The first demerit of cloud computing in e commerce web site is that security issues are present here and thus information could be easily stolen. This becomes a major problem for the clients of electronic commerce web site (Hashem et al. 2015). At the time of storing data in cloud, major challenges of data theft could be issues and thus security measures are required to be undertaken. Hence, clients are afraid to store confidential data within cloud.
- ii) Lower Bandwidth: The second demerit of cloud computing in electronic commerce is that it comprises of lower bandwidth. Most of the users are accessing cloud at similar time, hence causing bandwidth going down.
iii) Flexibility Issues: The next important disadvantage of cloud computing in electronic commerce is that there are various flexibility issues and thus all organizations could not easily utilize this technology (Rittinghouse and Ransome 2016). The hardware and software thus could be controlled effectively.
- iv) Incompatibility: For the reason of virtual infrastructure, issues of incompatibility can rise at various times for posing important issues for running services smoothly. This incompatibility helps the organization in dealing with various threats and vulnerabilities efficiently and effectively.
Therefore, from the above discussion, conclusion can be drawn that cloud computing is the easiest delivery mode of various hosted services on the Internet. It enables the organizations for consuming compute resources like storage, application, virtual machine and thus helping in building as well as maintaining computing infrastructures. E commerce sites are the most significant and popular web sites that help in shopping for all the clients cost effectively and also by saving time. There are various deployment models of clod computing, which are private cloud, public cloud, hybrid cloud and community cloud. The major goal of the implementation of the cloud is the perfect creation of an automated, unified as well as scalable environment for taking advantage to the public infrastructure. This report has clearly demonstrated about the detailed discussion on cloud computing in e commerce industry sector. The proper information and data is managed easily when cloud computing is perfectly implemented.
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