Digital Transformation: Evaluating Emerging Technologies. Группа авторов

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Digital Transformation: Evaluating Emerging Technologies - Группа авторов World Scientific Series In R&d Management

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      Figure 2. Tiers of a cloud computing design.

      Figure 2 shows the different tiers of cloud computing design.

      A cloud application provides a “Software as a Service” (SaaS) service through the internet without actually having to install and run the application on a client’s system [16]. Some of the important characteristics of a SaaS are: it has network-based access and the software is managed over the internet, enabling operations from a central location via the internet [16].

      Lastly, the required infrastructure is provided using the “Infrastructure as a Service” (IaaS). This service is scalable and the client only has to pay for the amount he uses. Thus, cloud computing makes its customer achieve faster delivery in less cost [17].

      3.10.Cloud computing security

      It is important for any business choosing a cloud service provider to trust it and its system with their data. The decision of moving to a cloud system comes with its own risks: data security, VM security and other compliance issues. Hence, these three elements drive the Confidentiality, Integrity and Availability (CIA) of any cloud system. Hence, the CIA is widely treated as the convention to determine the reliability of the system under these three factors.

      3.10.1.Confidentiality

      3.10.2.Integrity

      3.10.3.Availability

      Availability in the cloud service system represents the quick and rapid delivery of applications to the user. Businesses and enterprises need to maintain quick delivery of applications to their users, as downtimes (no matter how short) can cause an irrecoverable loss to an enterprise.

      3.10.4.Cloud computing usability

      The public cloud computing system includes a restricted class of servers, storage devices and networks. Amazon’s EC2 offers small, large and extra-large classes of servers, although the extra-large server seems to be of no match to any of the enterprise class servers in data centers.

      3.10.5.Cloud computing cost factor

      There are several aspects of cloud projects, such as data privacy and protection, business stability of the provider, pricing structure, legal background, interoperability of the system and solutions, etc., out of which the cost-benefit analysis of the system is the most fundamental one that determines whether a business chooses a commercial cloud or builds an on-premise system. However, research shows that the ultimate decision results from an impact of several other variables, such as the data transfer ratio, storage capacity and requirements, workload factors and licensing policies. Hence, the cost-benefit analysis of any IT project/system is complex and depends on future business processes. Financial calculations always consider the fact that the value of invested money changes over time and that every payment or income is worth more if received immediately rather then after some time in the future. This is presented in the concept of the Net Present Value, which is given as

      PV = FV (1 + k) T.

      In this expression FV refers to the future value of capital, PV is the present value of capital, T stands for the considered years of investment and k is the price of capital (or the annual interest rate). If certain periodic revenue is expected over several years, T (T = 1, 2, Y), then we can calculate NPV according to

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      Unlike classical financial models when analyzing IT related investments

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