CASE STUDY: CLOUD COMPUTING TECHNOLOGY ANS.

1: Meaning of Cloud Computing Cloud computing is an arrangement of computers with remote accessibility that lets users benefit from various computing processes on a service-per- demand basis or other arrangements. In simpler terms, it is like using someone elses computer grid on a pay-as-yougo basis, thus avoiding the initial investment. The three legs of cloud computing or the three ways one can deploy cloud computing are: - Infrastructure as a Service (IaaS): This includes getting on-demand access to server capacity, network connection and storage space with flexibility to increase or decrease. - Platform as a Service (PaaS): This includes access to a set of computer components that aid in the creation of end user applications. These components are generally exposed as web services. - Software as a Service (SaaS): Rather than buying the licenses and upgrading the hardware to run high end applications in-house, one can use cloud computing to run the applications.

ANS 2: Benefits of cloud computing to modern organizations: a. Enhanced innovation and experimentation, and competitiveness - With fewer technical and economic barriers to creating new ways to improve the business ( Marketing, sales, customer service, IT,

horizontal services), cloud computing will enable prototyping and market validation of new approaches much faster and less expensively than before. While legal, branding, and compliance will often struggle to keep up the pace with the rest of the organization, there will be a relative improvement in the pace of change as business possibilities become more possible in the cloud computing world. This wont fix the often broken innovation mechanisms in businesses, but then again, cloud computing is so accessible that many new internal entrepreneurs will use the tools to create new solutions. b. Reduced administrative work, and more self-service IT from the business-side. - Many cloud solutions, particularly as they relate to SaaS, will require increasingly less and less involvement from the IT department. Business users will be able to adopt many future cloud computing solutions entirely using self-service. The reduced involvement of the business the areas of data management will improve on its efficiency, while also saving costs. c. A new awareness and leverage of the greater Internet and Web 2.0 in particular. - When cloud computing is adopted by an organization, 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. And in the end, this will serve them very well and allow many

companies to acquire the skills and perspectives required to compete effectively in the 21st century. d. Better real-time partnerships and outsourcing with IT suppliers. - Unlike traditional outsourcing of IT, cloud computing will provide agility and control that traditional outsource cannot match for the most part. Enterprises can switch between cloud vendors far easier than changing IT outsourcers. In fact, many cloud computing relationships consist of nothing more than a cancel-at-the-end-ofthe-month commitment and corporate invoice. For many companies, this will actually be improvement over what they have now and give them choices they perhaps never had when everything required internal execution or to go through the outsourcing supplier relationship. e. The creation of a new generation of products and services. - The economics of cloud computing lets innovative companies create products that either werent possible before or are significantly less expensive than the competition (or just more profitable.). Competitors can often put the economic advantages of cloud computing into their product formulations fairly quickly once they see that it works. Where it gets interesting is that many business ideas that required prohibitive amounts of computing power, scale, or radically new business models, but couldnt be implemented due to existing technical limitations or cost-effectiveness, can now be realized. Every improvement in storage, processing power, or technology enables innovations that werent possible before, and cloud computing makes

these opportunities unusually accessible. Smart companies will take notice. f. The cloud offers economies of scale Due to the pervasiveness of IT and the essential role it plays in running the enterprise, it might make sense to view IT as a utility, rather than a dedicated capability. Much like other utilities such as power, and water, IT services might also be centrally managed and maintained for improved service and lower operating costs. Cloud delivery of IT services, like other utilities, offer economies-of-scale. IT systems must be scalable, reliable, and secure. However, due to the increasing complexity of IT systems and cost of skilled IT staff it is difficult for many companies to provide scalable, reliable, and secure IT services on their own. Many companies simply cannot afford to purchase all of the hardware/software and hire all of the specialty IT personnel needed to establish and maintain a dedicated and locally managed IT infrastructure that is scalable, reliable and secure. Cloud computing vendors have the ability to invest in the requisite staff, resources and facilities, allowing customers to pay only for what they use instead of making large up-front investments in dedicated resources that must be managed and maintained over time.

ANS 3: Reasons why organizations in East Africa are not excited about cloud technology - According to the Deloittes data security survey (2011), East African countries, the inertia to embrace the cloud computing technology is linked to such issues as security, legislation issues, data privacy, and internal factors within the organization. - The security risks in the cloud can be attributed to resource sharing and remote access of data. Also, it is feared that when organizations move their data to the cloud, it limits their control- unlike in the case of on premise data storage. Privileged user access, data protection, data segregation and recovery mechanisms are also part of the issues many organizations may not be willing to gamble with. Other concerns are about data movement in the cloud, coupled with the mystery of the actual location of data. The location of data in the cloud raises issues of legal compliance and taxation for organizations. - The concerns of the East African organizations about cloud computing may be very genuine. A spot check on how other corporate organizations around the word indicates that the fears indicated in the Deloittes data security reports are shared across the board. Other possible reasons that fires up corporate inertia to adopting cloud computing may include:

i.

Cloud Computing makes the organizations information systems excessively dependent on the Internet. - Where internet connectivity is slow, or cut off, the activities of the organizations will most likely be crippled. Some countries are now developing stiffer regulatory frameworks for internet communications, especially during times of war. In the event of war, all organizations utilizing the cloud computing technology may be forced to close down, or to a very slow and limited internet access- at best. Such level of uncertainty is not good for businesses.

ii.

Cloud Computing creates dependence on the goodwill of ISPs: - Cloud Computing may require gratuitous bandwidth for the client, depending on what the client is hosting on the Cloud. And the same ISPs who are clamouring for bandwidth caps may charge excessively if the client exceeds his or her bandwidth quota

iii.

Cloud Computing can expose unethical practices of ISPs:

an organization to the

- Some ISPs have a tainted and questionable past of spying on the data in transit. Whether data in encrypted or nonencrypted, the risk is real- that some ISPs cannot be trusted with sensitive data.

iv.

Cloud computing makes an organizations Cloud Data subject to the host countrys law: - Since most of the major Cloud Computing servers are operated by companies based in the western world (United States to be specific), data you put on your Cloud is subject to that countrys law. And the American law, for instance, is subject to overrides, loopholes, Patriot Acts, and exceptions, depending on which governmental agency (or which person/interest) wants your data. You may not even be informed that your data was compromised. And before reaching the Cloud, your data will pass through American ISPs that provide the Cloud with uptime. It could be intercepted by State Agencies even before it reaches the Cloud.

v.

Cloud Computing can expose Confidential Data to Corrupt Elements. - Since there is a higher likelihood that the USA will be hosting over and above 80% of the cloud data at the initial stages, it is good contend with some of the corporate malpractices and activism of the US corporations. The bad news is not that American State Agencies have backdoor access to American corporations. Rather, American corporations have an

incestuous relationship with American State Agencies. If suppose you are a non-American corporation with your Cloud

hosted by an American corporation, and your main competitor is an American heavyweight with backdoor access to the State Agencies, your confidential data on the Cloud may be just a few phone calls away. American corporations are known to use the State Agencies as personal armies, although very little of this gets documented. Worse, if the CEO of the Company that hosts your Cloud and the CEO of your competitor belong to the same fraternity, your confidential data on the cloud may be just a handshake away. Of course, your data on the Cloud is encrypted and cannot be accessed by anyone other than yourself. But then, there are always exceptions.

vi.

Cloud Computing is sounding more like a Lobby than a Trend: - The level of interest shown so far by the cloud computing proponents raises a lot of suspicions. The proponents are heavy weights from one particular corner of the world. The intense campaigns and lobbying for the cloud computing ideas looks similar to other selfish and well calculated lobbying carried out in the past by the same heavy weights from that same corner of the world!

vii. Cloud Computing may not contribute to the local national economy: When you buy the hardware, software and technical expertise for setting up a server locally, you are supporting several local businesses. With Cloud Computing, you bypass all of these. It is not yet clear how the local national governments will respond to this in terms of the labour and revenue collection regulations. ANS 4: Constraints inhibiting the success of cloud technology in Kenya. 1. Security Concerns: Unless and until the general security concerns raised by some of the E.A organizations in the deloittes data security report are adequately addressed, cloud computing technology may not be taking off soon in Kenya. Certain companies and industries have to maintain strict watch on their data at all times, either because theyre regulated by laws, or because theyre super paranoid, which means sending that data outside company firewalls isnt going to happen. And if the cloud computing servers will be physically based in the US, with the Patriots Act, they can still be accessed by foreign corporations and/or agencies. 2. Bureaucracy- caused by internal resistance: This will cause the transition to take longer than it should. Most companies are conservative, and transitions in computing can take years to implement. Employees may resist streamlining of any sort. Also, internal IT

managers may fight the outsourcing of their livelihoods to the cloud, and may block any progress by all means.

3. Reliability is still an issue. Cloud computing, it seems, may require a more reliable and steady supply of electricity and a strong uninterrupted connectivity to the internet. This is the point of departure between the developed countries who are selling the cloud computing idea and the the supposed adopters who have very unreliable electricity supply and a seemingly unreliable internet connectivity- Kenya being one of them. 4. The concept is still shrouded in mystery: - Data mobility, location and access are still the key issues that have not been well understood by the Kenyan industry players. The longer it remains in mystery, coupled with the so many suspicions, cloud computing concept may take a longer time to be adopted by the Kenyan organizations. 5. Its not environmentally sustainable. - The reality is that computers are still sucking down megawatts of power at an ever-increasing rate, and not all clouds are built to the best energy-efficiency standards. Companies will pay for the poor energy efficiency, but even if we assume that corporations are going to try to be more accountable with regard to their environmental impact, controlling ITs energy efficiency is not easy. The local national governments may not give the much needed green light nod, or any form of encouragement at best.

6. Large companies already have an internal cloud. - Many big firms have internal IT shops that act as a cloud to the multiple divisions under the corporate umbrella. Not only do these internal shops have the benefit of being within company firewalls, but they generally work hard from a cost perspective to stay competitive with outside cloud resources, making the case for sending computing to the cloud weak. ANS 5: The benefits of Cloud computing to our organization Despite all the fears and potential risks associated with cloud computing, the benefits in the long run far outweigh all potential risks combinedespecially for the SMEs. The following are the most important aspects of cloud computing that every organization should consider: - Reduced costs: Cloud computing reduces the hardware requirements for the organizations information needs e.g. computers, software (all those downloaded programs), networking management and overall IT expenses. In addition, with cloud computing, you pay for what you use. - Scalability: An organizations storage needs can be scaled seamlessly rather than having to go out and purchase expensive programs or hardware. There is no need to purchase a piece of hardware, buy software licenses or worry about overloading their servers. - Automatic Updates: There is no need for IT to worry about paying for your future updates in terms of software and hardware.

- Remote Access: employees, partners and clients can access, and update information wherever they are, rather than having to run back the office. - Disaster Relief: With a companys data safely stored on secure data centres instead of a server room (previously known as storage closet), losing power due to hurricanes, earthquakes or a construction worker cutting the power lines, it is easy getting back at work as long as there is an internet connection. - Ease of Implementation: Implementing cloud computing services is very easy, and therefore it can minimize a lot of training and retraining activities. - Skilled Vendors: Data management and security is handled by highly qualified professionals, e.g. where the cloud hosts are IBM or Amazon or any other ICT global giants. - Response Time: Cloud computing accomplishes a better response time in most cases than a standard server and hardware. - Even playing field for small firms: This allows small companies like ours to compete more effectively with some of the larger businesses, balancing the playing field. Small business can utilize the same tools that big corporations use and can do this because with cloud computing, an organization will only pay for what you need

Increased productivity: Using third-party cloud services can help us and our staffs to be more productive. Using cloud storage solutions, such as Box.net and

Dropbox, you can store your files in the cloud and share them with your team members, and even your clients quickly. Using online collaboration/project management tools like Basecamp, Huddle, and other online collaboration and project management applications allow organizations to collaborate with their staffs and anyone with an access to regardless of their physical location (remote access), as long as they have access to a computer and the Internet: it is possible to have a web meeting, chat session, work on a project, track project progress, etc. all done online, using web-based software. - An edge in business competition: As a start up, going to the cloud means to have more room in your budget the initial operational costs are more manageable and we can direct our resources to whats important on your bottom line.