Week 7

November 6, 2009 at 5:30 pm | Posted in Cloud Computing, E-Commerce | Leave a comment
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What is Cloud Computing?

After looking through various terms of cloud computing I have found an ideal description for cloud computing. Cloud computing is a system which relies on sharing computer resources rather than storing applications within local servers or personal devices. This means people can access their data or application from anywhere which has internet access and this system involves no installation. This type of service allows for more efficient type of computing and is usually charged by time, usage and space requirements.

Cloud computing has three main areas – Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS).

Cloud Computing Impact on E-Commerce

Some IT experts are predicting that within the next five years, nearly 90% of all e-commerce businesses will be leveraging some form of cloud computing in their operations.’

The speed of your ecommerce application will be five times faster than normal e-commerce sites. A selling platform can be created from a branding initiative and orders can be taken within a few weeks. Applications in the cloud can be built for a huge reduction in price compared to usual ecommerce costs. Running your e-commerce business in the cloud helps make it easier to do business with customers by simplifying interactions and driving down transaction costs.

Benefits

  • All that is required is a basic machine with internet access. The cloud computing service does the rest. Devices include home computer, laptop and mobile phone.
  • Daily backups and data recovery from the service mean data is always secure which benefits small companys that do not requite an IT department.
  • Data can be accessed from anywhere that has internet access. This is useful for group work where editing and updating can be done by all members of the group.
  • Larger amounts of information can be stored in a cloud computing system. Limitless data can be stored as no hard disk is being used.
  • Using cloud computer enables much easier business to be done between customer and company.

Problems

  • Consumer data is stored online and if the cloud computing servers are hacked or infected by viruses then customers details are at risks and the applications will be inaccessible.
  • Bandwidth normally needs to be high to be able to download off cloud computing so a high speed connection is desirable

As a final conclusion to cloud computing, I have found out that it shall be quite dominant in computers in the years ahead.

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