Cloud Media reshape the way we do business

Theodoros Pitikaris1, Dalianis Argirios2, Kanellos Nikolaos2, Nelson Rivera Carrera3

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Department of Applied Informatics and Multimedia Technological Educational Institute of Crete Heraklion, Crete 71500, Greece {thodoris@pitikaris.eu} Department of Informatics & Telecommunications, National & Kapodistrian University of Athens {argda7@hotmail.com, N.Kanellos@di.uoa.gr}
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London School of Economics & Political Science {n.carrera@lse.ac.uk}

Abstract: IT has changed us profoundly. It has changed our culture, it has changed our language, and it has even changed the way we think. Cloud computing is the most significant development for IT since the invention of the PC. Moreover, cloud media is an extension of the cloud computing. It is based on the idea that media applications and IT-based services that previously required some sort of local application or storage device are now moving off of local PCs and onto data center servers. Today, there are a variety of services that bring functionality to business and consumers via Web-based applications that were previously PCcentric and/or local server applications. Software as a Service (SaaS) applications such as Google Apps and CRM software from Salesforce or Amdocs are great examples of this. These services are not only focused on people but on businesses as well, thus enabling cloud media to affect not only IT itself but more importantly ITs relationship with the business. One could say that cloud media is potentially the game-changing paradigm that will rewrite the way companies view, use and pay for technology. In this paper we will study the ways in which cloud media can change the way business is done, not only in terms of organization, but also the complete organizational behavior of a company. Keywords: Cloud Media, Cloud Computing, Social Networks, Business Ecosystem 1. INTRODUCTION
We consider the Cloud media as a loose tie between cloud computing, Web 2.0 and social media, an advancement that consists a promising technology trend (Kaplan and Haenlein ; Rajkumar 2008). We need to clarify that this trend is under a continuous transformation, by adding new features and new deployment strategies. Nevertheless, Cloud Media have a solid core and a strong prospective for expansion both in industry and for private use (Kaplan and Haenlein).

W
Cloud Computing

World

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S.M
Social Media

Figure 1: Cloud Media 1

2. SOCIAL MEDIA IN DETAILS

On t one hand, Cloud computing i a new perception about Information Technology, which has as a main advantage the ability to offer a variety of computing resources on demand (for instance software and/or virtual hardware) by combining the pay as you go logic(Armbrust, Fox et al 2010). On the other hand, social networks (for instance Facebook or linked in) are web applications that initially had a very specific user -target group and range. Through time and via peoples natural tense for networking, this application has been transformed to a major IT tool for everyday use, entertainment and communication(Kaplan and Haenlein). The maximum number of users that will use this kind of applications is only statistically predictable, while the load picks reach new limits every day(Rajkumar 2008). To overcome this obstacle, companies and groups of users, in some cases have started to use load balancers. But the demand for more cpu time, faster network response, more memory have led IT researchers to develop a trendy version of Grid Computing called server farms(Buyya, Yeo et al. 2009). Server farms are just large numbers of distributed unmanaged computers, that serve a specific purpose (i.e mathematical calculation for Google ranking system). When one computer goes down, this event has not noticeable effects on the body of the organi ation, since the other members of the farm will replace the loss. The next step was to combine software and hardware flexibility and create a new product called: Cloud Computing(Buyya, Yeo et al. 2009). Beyond technical academic discussion there is a real asset for the users is the information that these systems store and manage and provide(Kessinger 2011). A large volume of data lives in Social Networks (for instance politics, reports, HR matters etc.) while the IT sector is challenged by the need for more resources. Cloud computing seems to answer this challenge. The join of Social networks, web 2.0 applications, e-service and Internet multimedia is what we propose to refer to as social media(Buyya, Yeo et al. 2009). This new combined entity has sufficient influence into operational behavior of organi ations (public or private), by adding value and increasing capacities of business ecosystem.

3. OPERATIONAL BEHAVIOUR
The organi ational culture is the part of Business Administration which describes the psychology, behavior, experiences, beliefs and values of a company. It is actually a set of values and norms which are shared across individuals and departments within the enterprise and it regulates the interaction between each member of the organi ation(Holmes, Schnurr et al. 2007). This process is based on personal beliefs, in values and rules, such as the values associated with time, money and other people. The outgoing result influences the internal culture and other factors such as organi ational behaviors. These values that the employees adapt as the

appropriate behavior patterns, are essential in order to achieve business goals(Camerer 1999; Holmes, Schnurr et al. 2007).

3.1 THE FEAR OF CHANGE

Our time is characteri ed by the rapid technological development. The entrance and the extended use of IT technologies in corporate culture have significant impact. The ease of access to the information asset of the organi ation and the ability to archive more securely, enabled users to exploit new media in order to improve the way that the run every day work and transformed the decision making process (Lai and Turban 2008). It has been noticed that most of the attempts to introduce a new technology inside an organi ation came down to a failure. The most common reason for these failures was the devaluation of the importance of moderni ation of the organi ational culture(Zammuto and O'Connor 1992). Another important reason was that the employees denied and feared any doctrinal change since they believed that the new information system would generate new requirements and professional standards(Martin 2009). Even though the fears of the staff are in most cases unfounded, it is certain that the implementation of an information system will inevitably cause some changes in their daily work habits and it will challenge the shared beliefs and values, that have been established for several years and which, up until now, make up the existing culture(Rogers 1975).

4. BUSINESS ECOSYSTEM
Ecosystem is a term that we first met in sciences studying life. Biology tried to discover the correlations between the micro and macro environment and has used the term ecosystem to describe the associations that are developed between entities that interact with each other (direct or indirect) . Later, in 1938, Moore extended the use of this term in economy: An economic community supported by a foundation of interacting organi ations and individualsthe organisms of the business world. This economic community produces goods and services of value to customers, who are themselves members of the ecosystem. The member organi ations also include suppliers, lead producers, competitors, and other stakeholders. Over time, they coevolve and their capabilities and roles change. Companies holding leadership roles may change over time, but the function of ecosystem leader is valued by the community, because it enables members to move towards shared visions, to align their investments and to find mutually supportive roles, set by one or more central companies

customm rs

corporations

Supli rs

comp ttitors

Figure 2: A simplified representation of an Economic Ecosystem. Red lines represent cash flows, blue lines value/products and black lines the mutual forces which are developing between competitors.
In other words, the operational culture of corporations, people, government etc. plays a key role in the ecosystem dynamics.

4.1 INTERNET EC SYSTEM The introduction of internet in everyday life has significant impact in production/supply chain lines. Corporations operational behavior changed the vertical way of buy ing, producing, storing, paying, selling etc. by replacing the above with more organic, fluid, flexible relations over alliances, partnerships and collaboration (i.e. outsourcing) Before the coming of the Internet, there was a common perception that vertical production has lower variable costs. This was based on the idea that the information flows better inside the company (i.e. CEO normally has full access to all coronation data) (Friedman 1986). The truth is that Internet broke that rule. Business and Consumers have now better information about product/service features that every other entity provides, while in some cases this eliminates the need for intimidators(T.Pitikaris 2011). Therefore they can choose what best fits to their needs. Since the search and purchase of services is now open to everyone, vertical businesses are very likely to face disadvantages against smaller ones that have focused their production efforts in their area of expertise (core business competencies) while they are outsourcing everything else to other experts. Cloud media fits perfect to nowadays understanding of effectiveness in doing business. It is actually an evolution of IT outsourcing. For social media is that its word of mouth on steroids, and people are sharing more than words. They also share ideas, pictures, video, and audio: Content. Then other users share that content in turn, through personal connections at an unprecedented rate.(Herron 2011) 4.2 THE NETWORK EFFECT

Stat

The main problem for users and corporation remains the possibility to lock in with a Social Media Provider. Google faced a big failure on its first attempt to exploit social media via Wave Platform(Warren 2010). Most of the users had already covered their needs using alternative providers, like Facebook or other cooperating platforms. Even though Wave offered many tools and features for teamwork and e-sociali ing, most of users did not respond to Google call since the platform was empty from other users(Boulton 2010). Furthermore, cloud computing consumers find it difficult to switch provider, since there is not a common protocol for transferring procedures and data (Armbrust, Fox et al. 2010). By technical point of view the XML in a standard that can be employed via a common protocol for cloud media data interexchange. Yet, business logic prevents the Giants of Social Media to go for something like that, although we have seen examples that contradict this thesis. In example, recently, there has been an agreement between Facebook and Google for contact import and information interexchange(Kincaid 2020). This uncertainty causes frustration to the end users and it has slowed down the transition to cloud media technologies(Ivan 2011). 

5. WHAT NEW CLOUD MEDIA BRINGS TO THE INDUSTRY?

As is mentioned above, cloud media comprises mainly of two major IT products, cloud computing and social media. Both of these products have the ability to change the way of business for companies in their own way.

5.1 THE BENEFITS OF THE CLOUD There are several ways in which cloud computing may change the way companies do business. They mainly consist of the creation of new products, because of the technological change, and the new market structure for both the IT vendors market and the entire business world, since companies that will adopt and make the best out of the cloud will differ themselves greatly from the others.

New products and services can be created. The economics of cloud computing lets companies create products that either werent possible to create before or are significantly less expensive than the competition. Thus, many business ideas that required prohibitive amounts of computing power or radically new business models but couldnt be implemented due to existing technical limitations or cost-effectiveness, can now be reali ed. This part of Social Media is an arms race and there are short windows of opportunity since competitors can often put the economic advantages of cloud computing into their product formulations fairly quickly, once they see that it works for their company. Where it gets interesting is that every improvement in storage, processing power, or technology enables innovations that w erent possible before and cloud computing makes these opportunities unusually accessible (Rajkumar 2008; N.Kanellos 2009).


Cloud providers offer an adequate disaster recovery plan. Clients data storage is replicated and decentrali ed following p2p network logic. In this way, data can be modified or enriched and of course versioning services are available. Thus, data is available anywhere and from any device that can access web, allowing teleworking and providing additional functionality to business. Furthermore additional backup services are provided(T.Pitikaris 2011). T ere are changes in real-ti e partnerships and outsourcing with IT suppliers . In the past many companies, that did not have the ability to support a large IT department, used to outsource their IT services. This uncertainty tends to frustrate end-users and the fear of lock into one specific provider and large organi ation are slowing down their transition to newer technologies (Ivan 2011). Nowadays, with cloud computing, a large part of what used to be in-house is now being done somewhere else and changing anything is hard. But unlike traditional outsourcing of IT, cloud computing will provide agility and control that traditional outsource cannot match for the most part. Unless a company has negotiated a ong-term l contract, it can often switch to another IT supplier far easier than changing IT outsourcers. For many companies, this will actually be improvement over what they have now and give them choices they perhaps never had when everything required inter execution or to go nal through the outsourcing supplier relationship. In addition, customers costs structure is now changing. The CAPEX is transformed via pay as you go logic to variable cost, by following the custom needs of client at any particular time (T.Pitikaris 2011). Adopting cloud media induces new awareness for the benefits of the Internet and Wed 2.0 possibilities. Even though most companies are still notoriously critical of Web technologies, we have to admit that we are living in a new era of computing, where the Web has grown up considerably in the Web 2.0 and the challenges in scale, performance, and satisfying fickle audiences of millions have created technologies, solutions, and architectures that can address them in powerful yet economic ways that many enterprise systems are finding hard to match. When cloud computing is adopted by an organi ation, they will find themselves thrown into the pool with the rest of the online world in many ways, whether this is the employment of social tools, SaaS, non-relational databases or a host of other technologies in their new cloud. This will allow many companies to acquire the skills and perspectives required to compete effectively in the 21st century(Oreilly). Traditional SOA is evolving because of the cloud. The advent of cloud technologies will have to be dealt with and somehow encompassed by SOA initiatives that are already looking at their current toolset of heavyweight approaches and technologies. Web-Oriented Architecture fits very well with cloud technologies which are heavily Web-based and its a natural, lightweight way of building SOA at virtually every level of the organi ation. Thus many organi ations will be forced by the cloud to abandon traditional SOA and move it to a place where it will meet new business and technical requirements, faster rates of changes, and new business conditions(Kamel Boulos and Wheeler 2007).
    

New industry leaders and IT vendors rise. While were seeing many of the top players in computing use their existing strengths to create successful cloud computing offerings, there were also be a new generation of companies (Amazon, Google and many more) that businesses generally arent used to dealing with as suppliers. While it doesnt seem that well see many entirely new players compete with the big firms, its certainly not out of the question (and given the opportunity, likely from an investment standpoint) that well see some very well-funded new cloud startups that bring a new approach (new technologies, and Web-focus) thats often needed with cloud computing. Either way, the industry landscape will be remade by cloud computing as it is one of the very few new IT developments that will be very broadly adopted in the next several years(T.Pitikaris 2011). More self-created IT services. Many cloud solutions, particularly those related to SaaS, will require increasingly less and less involvement from the IT department. This is bound to happen since business users will be able to adopt many future cloud computing solutions entirely using self-service and, in addition, they will be able to create new self-based IT services by using tools provided by the cloud services.(Kessinger 2011) Innovation and experimentation from businesses is at hand. With fewer technical and economic barriers to creating new ways to improve the business (LOB, marketing, sales, customer service, IT, horizontal services), cloud computing will enable the creation of new products and market validation of new approaches much faster and less expensively than before. In example, platforms like e-bay remove the need of physical establishments (offices, representative, and points of presence) for a number of companies. This wont fix the often broken or particularly slow-moving innovation mechanisms in businesses, neither will speed up the pace of other departments of the enterprise, such as legal, branding etc, which will often struggle to keep up with the rest of the organization, yet cloud computing is so accessible that many new internal entrepreneurs will use these new tools to create new solutions anyway. Heads up for the slow-moving firms in order to keep up. Not adopting cloud computing doesnt mean the immediate demise of traditional companies that arent good at making technology and cultural transitions, but it will pile onto other recent advancements and make it even harder to compete in the modern business environment. In the end, those too slow to adopt the benefits while managing the risk are likely going to face serious and growing economic and business disadvantages.
5.2 NETWORKING BUSINESS SUCCESS Cloud medias second component, social media, may also prove quite helpful for companies that will be willing enough to explore this IT trend. There are 3 ways in which social media can change the way companies do business. Social media as a new distribution channel. A recent research by Eversave points out that 87% of women use Facebook, one of the main representatives of social media, as a way to be informed for new products and upcoming sales. Through a very simple, low -cost webpage companies can advertise their products, give out contact details and other pieces of information and notify consumers for upcoming sales. This applies both for companies that sell products and for service-providers. But we have to keep in mind that investing in this distribution channel wont be enough to cover all the advertising needs that a company may be in need of, in order to stay viable and prosper.

Social media can also be used as a marketing analysis tool. The extended use of social media by the public led to the development of software that allows companies to collect valuable feedback about their product and their reputation (i.e. eBay evaluation and comment system). Moreover, through these networks a company may analyze and evaluate the impact of a new product or an investment on the public. In addition, it can gain grasp of what consumers think of the company and the product/services provided and apply marketing techniques or even perform great changes in the culture or function to the entire firm, so as to become more appealing to the public. Thus, the proper analysis and use of the data collected from social medias networks may became a great advantage for the companies that make a use out of them and perform the changes need and give them the edge needed to stand out in this complicated and always changing market. New business-based social media networks have been developing (wadja). Developing companies claim that these new networks will bring employees closer, exchanging business experiences and applied practices, as well as help forming new alliances. In addition the platforms provided through these networks can be used for both product and/or services for instant feedback, brand loyalty, advertising, events, live market monitoring and research marketing. They can also organize the entire social content and have a real time view of all the information transmitted through the rest of the social networks that concern the company. Researching and evaluating employees through social media. Even Human Resources departments are able to find and evaluate candidates using specific Social Networks like LinkedIn, while they are in position for further candidate evaluation using public available information from other social and web 2.0 media(Skeels and Grudin 2009).

6. SOCIAL MEDIAS INTERACTION WITH THE USERS

It is reported that young users spend a lot of time socializing using Social Networks.(Pempek, Yermolayeva et al.) Especially teenagers and young persons that are students are most likely to have a Facebook account. At university of Crete, nearly 78% of undergraduate students replied that they have an active Facebook account, while 35% of them use smartphones and other mobile devices to keep themselves updated about other peoples activities or to update their own status(S.Tzetzailidis 2011). It is also noticeable that the time spent on Social Network Platforms is something between twenty minutes and two hours (Pempek, Yermolayeva et al.). In addition, most of them logon to their account more than one time per day to see what is going on. (A.Kothari) By accumulating all this information, it is possible to create a consumer profile based on preferences or services in need (Lampe, Ellison et al. 2007). Actually Facebook already provides advertisement based on network-friends preferences (we can avoid that feature using the privacy control options). Furthermore, Wiki style platforms enable the spread of knowledge between users. Wikipedia is an excellent example of Wisdom of Crowds, where groups of people cooperate together in order to solve problems, accumulate knowledge and promote innovation(Lai and Turban 2008).

7. LEGAL BACKROUND

Another point of discussion is the state policy towards personal data, history shows that USA government provide the legal ground and encourage the data monitoring of people especially after 9/11. The carnivore, the SWIFT system transactions has been proved that are under monitoring by USA government. Additionally Patriot act provides the legal background for further monitor of network Data. Based on the above facts is logical to think that personal data and conversions in USA, based social network sites are monitored too(Steven 2002). For instance the access to MySpace has been stopped by USA army when an article skeptical of the Iraq war was published by low rank personnel. The wikileaks.org story is another, paradigm about the constrains that USA believes that are necessary to be applied on information flow over internet to protect national security(Barron 2011). Furthermore, it is important to realize that these social networks are web-based, and therefore by definition international in membership and have a truly global outreach. Being truly global, it is not very easy for governments around the globe to regulate the use of personal data on these social networks. The use of personal data is restricted in accordance with European Union law, with some member states having stricter restriction than other, thus for instance in Sweden every person whose data is stored by electronic means has the right to once per year ask for copies of all details kept about him free of charge, whereas in countries such as the UK the same right exists, but is subject to payment of administration fees. Hence, the problem arises of which countries legal system for protection of personal data has to be followed by the social media the one of the state where their servers/headquarters are located, or the ones of the country where the individual social network member lives? If the latter is chosen, from an EU viewpoint it cannot be stressed enough that the jurisprudence on treatment of personal data within the European Union member states stems from Directive 95/4/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data. Thus, the current version of the Data Protection Act (anno 1998) is in effect a transposing of the EC Directive into the dualistic British legal systems. The aforementioned Directive sets out very strict rules, including one stating that personal data must not be processed at all unless there is a reason to process it, in the case of social networks the reason would be the consent given by the member of the social network. It is interesting to note that in accordance with the aforementioned Directive, personal data can only be used for the specific explicit purpose collected, and any use incompatible with it is unlawful1. Thus, it is quite clear that at least in so far as the European Union Member States are concerned; there is a robust system of protection of social network users personal data. However, Facebook and MySpace are not based in European Union, while a significant number of Cloud computing server (including Google/Bing/Yahoo infrastacture) and multimedia services such as YouTube, are actually based in the United States of America. Whereas Directive 95/4/EC makes it unlawful to use personal data for any other purpose than the specific and explicit purpose for which it has been collected, this safeguard is lacking in the terms and conditions for the above services.

Additionally the EU council, after 11/9/ enforced tighter regulations about logging and enabling monitoring of communication(Bossong 2008) Even though the Social Media providers support that have as major concern the privacy of their customer, which by virtue of its link from the general Terms and Conditions of the initial Contract, they may transfer Related Data such as IP addresses to certain advertising partners located in your country of residence or abroad(Gilbert and Karahalios 2009) and may be forced by court order to reveal the context of that the data that store for other entities(F S. Grodzinsky 2006). Furthermore, MySpace, Facebook, Cloud providers attempts to curtail the remedies available for any disputes by an extraordinarily broad clause. For instance my space had included in its terms of use the above paragraph: The Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to its conflict of law provisions. You and MySpace agree to submit to the exclusive jurisdiction of the courts located within the State of New York to resolve any dispute arising out of the Agreement or the MySpace Services. EACH OF THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION. In effect this clause purports not only to specifically and effectively exclude the rights of users in for example the European Union to be able to complain to the Data Protection Commissioners in their home countries, but it also makes any litigation extremely difficult as it shows an agreement that all and any litigations will take place in accordance with the laws of New York only, thus preventing any claims from being brought in local courts. Although the US system is famous for its generous awards of damages and punitive damages, it cannot be emphasized enough that there is no federal US law providing a privacy safeguard as robust as the one afforded by the EC Directive 95/46. Instead the US system is based on specific acts aimed at protecting the data contained in health records and the data handled on by financial institution, but no right to privacy as such exists. Hence, if the social networks fail to protect the personal data of their members, these have no remedies other than to complain. Despite the fact both Facebook and MySpace are based in the US and thus have no absolute legal obligation to protect the personal data of their members there are no recent reports about breaches of security either for Facebook or MySpace. Yet it is almost impossible to achieve a 100% secure internet site. Techniques like brute force attack, keylogers and malwares still applies no matter what how safe is the main website. Also passwords and messages are traveling across the internet in the form of e-mails, thus compromising the contents in the actual profile. But in our opinion the great danger comes from the user itself by believing that he is safe and only his friends have access to his data. Having this feeling he feels comfortable to expose aspects of this private life to the public in a way that he would do it in his real life(Moody 2003; Groos. A. 2005). The social networks do not claim to protect user posted content in the same way as the personal data, thus any content posted can and is accessed by anyone who on MySpace is a member wishing to access your data, or in Facebook belonging to your network or who has been accepted as a friend by you. This poses a great danger since the willingness of some network members to disclose personal information, and even add pictur of what es they do on their spare time can cause problems, especially in their careers. Thus for instance a teacher in Jacksonville, Florida, lost his job over a non-pornographic but nonetheless inappropriate picture posted on his profile. Moreover, there is always the inherent risk of pranksters purporting to be one person and making defamatory comments in profiles supposedly belonging to that person. As a way of example, our empirical work shows that there are more than 500 Facebook profiles belonging to Jesus Christ, at least four belonging to Adolf Hitler etc.

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8. CONCLUSIONS
Web 2.0 was the application infrastructure for social media development. Access to data is provided, at any place and from any device that is able to display html. Social networks have been part of everyday life for many people, and the enjoyed enormous acceptance in Colleges and Universities by students. Even more, web applications based on social media logic, changed the way that businesses operate. They opened channels of communication in the hierarchy of corporations in both ways; down up and up down. Labor force mobility is enhanced, while new work opportunities are easier to be found by applicants. On the contrary social media is a source of concerns for corporation and user privacy. The question about who is the owner of the information still remains. And there is a risk for information leakages (industrial spays) . Law that is applicable is quite different from place to place, reflecting the differences from country to country. Additionally, some forms of social media, empower democracy, and knowledge exchange. On the other hand there is always a threat that the same media can be used for promoting Fundamentalism or extreme activism. In conclusion we believe that the business world, through the use of Cloud Media, will benefit in terms of capital expenditure, feedback collection, and Customer Relations Management services deployment. Still it is essential for users and corporations to think twice what information will add to the social media cloud, what service will outsource and what they will keep for in the house.

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The literature on advanced manufacturing technologies (AMTs) shows that a wide range of outcomes have been experienced by organizations that have adopted these technologies, ranging from implementation failure to increased productivity and enhanced organizational flexibility. This article examines the roles that organization design and culture play in the varying levels of success experienced by AMTadopting organizations. Several hypotheses are presented on the relationships among culture, structure, and implementation outcomes based on the competing values model of organizational culture.

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