Case2 3 should business move to the cloud

1. Should Business Move To The Cloud CASE 2.3
1 MBA_Batch2_UMK_Kch/M7/GST5803/Information System and E-Commerce/P14D397P
CASE STUDY 2.3
SHOULD BUSINESS MOVE TO THE CLOUD
QUESTION 1
What business benefits do cloud computing services provide? What problems do they
solve?
In the case they give us an example which uses cloud computing at the marketplace that is
Amazon. For Amazon they use the Web services division (AWS) to get flexible computing
power and data storage. This cloud application helps Amazon get a large amount of
computing resources. According to the customer provided information, the AWS can help
Amazon separate, allocate and arrange these resources. The AWS also can help Amazon’s
computing resources.
On the one hand, Cloud computing has brought a lot of convenience for Amazon, making
them save costs and increase profits; on the other hand, cloud computing let Amazon spend
more time on other work which had more value (Laudon 234). Because of that using cloud
computing can store large amounts of data and information, more and more companies are
using cloud computing. Cloud computing helps us build a large database, and can help us to
quickly find the desired information. This improves the work efficiency. “Big Data analytical
techniques are being used to deliver more detailed data – and deliver it quicker”(Top 10
business reasons to move to the cloud). Another example for using the cloud is that it can
help the company save cost, like the Outback company who used the cloud “to avoid taxing

2. Should Business Move To The Cloud CASE 2.3
2 MBA_Batch2_UMK_Kch/M7/GST5803/Information System and E-Commerce/P14D397P
in-house system unnecessarily” (Laudon 234). In the case, the Zynga Company uses cloud
computing to store data and transmit data. “Storing information in the cloud gives you almost
unlimited storage capacity”(Cloud Computing – Is it Really All That Beneficial?).
When a new game is in the test phase and the company is not sure how many customers, they
use the Amazon cloud. “Then once game traffic stabilizes and reaches a steady number, they
would move the game on to their private zcloud” (Laudon 234). This cloud transfer can help
the Zynga Company solve the space storage problems, and only pay for the resources it ends
up using. Using the cloud to transfer one game’s large data, is easier than using other old
applications. In the case, the InterContinental company use the cloud to provide customers
with more convenient services.
According to use the cloud, the InterContinental company lets their customers receive data
faster if the data ias located on a server that is physically close to them (Laudon 234). With
the development of society, more and more multinational companies are using the cloud, not
only because of cost savings, but because people worldwide can access the cloud, provided
they have an Internet connection(10 benefit of the cloud computing).

3. Should Business Move To The Cloud CASE 2.3
3 MBA_Batch2_UMK_Kch/M7/GST5803/Information System and E-Commerce/P14D397P
QUESTION 2
What are the disadvantages of cloud computing?
Using the cloud computing, the two major
disadvantages are security and reliability. In
this case study, Amazon's cloud service has
shown significant outages in 2011 and
2012, causing serious consequences. There
are many large sites are using Amazon's
cloud computing, so Amazon's cloud
computing failure will not only affect Amazon, but also spread to many
other companies and have a great impact on them. (Laudon 235).
According to the Paris International Group of a report, after investigation
they found that each year there are about ten hours or more the server fails.
Even this small amount of downtime can lead to large revenue losses for
firms that need 24/7 availability. Another important issue is security. “By
leveraging a remote cloud based infrastructure, a company essentially
gives away private data and information, things that might be sensitive and
confidential. It is then up to the cloud service provider to manage, protect
and retain them, thus the provider’s reliability is very critical.
(Advantages and Disadvantages of Cloud Computing – Cloud computing
pros and cons) In addition to these two major drawbacks, another
drawback is that cloud computing is prone to attack. Store information in
the cloud could make your company vulnerable to external hack attacks
and threats. As we know, the Internet is virtual, so we do not know what is
safe. (Cloud Computing – Is it Really All That Beneficial?)

4. Should Business Move To The Cloud CASE 2.3
4 MBA_Batch2_UMK_Kch/M7/GST5803/Information System and E-Commerce/P14D397P
QUESTION 3
How do the concepts of capacity planning, scalability, and TCO apply to this
case? Apply these concepts both to Amazon and to subscribers of its services.
Amazon must provide hardware capacity planning and scalability. With the development of
information technology, Amazon will have more and more customers. Not just Amazon, but
Amazon's customer requires a large database to store a variety of data and information. This
will help the company grow. Amazon must bear the total TCO of its services, while Amazon
is also needed to maintain the profitability of the company. However, the services'
subscribers benefit from not having to worry about these issues.

5. Should Business Move To The Cloud CASE 2.3
5 MBA_Batch2_UMK_Kch/M7/GST5803/Information System and E-Commerce/P14D397P
QUESTION 4
What kinds of businesses are most likely to benefit from using cloud Computing? Why?
As information technology and social development, there have been more and more
companies need cloud services. Online business is the biggest user cloud computing, at first
online business need to process too much data and information online.
First, the information Internet companies need to use cloud services, such as Facebook,
Google, Ebay, etc. Because the cloud computing can store large information, and share the
information.
Second, large multinational corporations, one of the advantages about the cloud computing is
that people from around the world can get a faster connection. Cloud services can help
employees of multinational corporations to establish good communication channels and share
the company's resources. This saves the cost of the work to help multinational companies,
improve work efficiency.
Logistics business needs to use cloud computing to support the services that logistics
business offers.
In addition by switching to cloud services, business could reduce their Total cost of
ownership (TCO) through greater centralization and standardization of their hardware and
software resources.