Evolution of Cloud Computing Markets

Question: Discuss about the Evolution of Cloud Computing Markets. Answer: Introduction Now a day, lot of businesses are switching to cloud computing by using cloud to connect to their customers and thus practising their businesses more effectively. Also, small businesses are turning up to cloud and taking advantage of cloud for managing their finances. Data is sent to the cloud, where the processing is done and then returned to customers. All the app functions are performed off-site rather than users desktop. It makes real time reporting to the management and correct visibility throughout the organisation. Here, users access applications through Internet via a cloud application service provider. The organisation is freed from installation of softwares and maintenance of individual desktop computers (Buyya, 2008). It allows employees from remote locations, other departments or branches to access the same data as well as same version of the software. Cloud computing option automatically backups the data hence a secure version. It operates on various platforms rather than single platform as traditional accounting software does. Difference between cloud based accounting software and traditional accounting software Companies which use cloud computing requires less server infrastructure to store the data. IT staff cost is reduced as they are not required for maintenance and update of cloud accounting system. Thus, less overheads and no new software purchase cost increases the savings of the organisations and thus higher profits (Foster,2008) However, companies using traditional accounting requires maintenance cost and new licences costs and fees for IT staff maintaining database and other software. For any changes in figures, companies using traditional accounting software need to manually note down the change in each location where the figure is, in place like forms, ledgers and other documents. However, in cloud when new data is entered it appears in each place wherever it is required. Thus, savings of time, money and future consequences. One of the biggest benefit of cloud computing is accessibility. If internet access is there, accountings records are at your fingertips. However, in traditional accounting software, access was limited by when your accounting professional was available or desktop containing the information. If there are any problems with the program, business must wait for the next version for the bugs to get fixed in case of traditional accounting software. However, in cloud computing software issues are fixed immediately. Data Backup restoration: In traditional accounting software, the accounting information needs to backed up daily, weekly or monthly as per schedule manually by someone. However, in cloud accounting does automatic data backup at offsite location and thus reduces the chances of human error. Also, reduces the risk of loss of data in the event of fire or any other damages. Even if such incidences happen, cloud base service provider helps to restore the business data and thus reducing the inconvenience to the customers. Cloud Accounting Software Traditional Accounting Software 1. Less Cost. 1. Comparatively Costly affair. 2. Real time based. 2. No real time based. 3. 24*7 access. 3. Limited access 4. Immediate bug fixes. 4. Need to wait for version change for big fixes. 5. Automatic data backup restoration. 5. Manual data backup restoration. Use of Cloud Accounting Software vs. Traditional Accounting Software Both have benefits, however following companies can have benefit of Cloud Accounting Software: Companies having lesser budget, since its costs less installation and maintenance costs than traditional accounting software. Companies having employees working from remote location since its provides better access. Business who avoid physical mishaps with technology at office causing destruction to hard-drives and thus, data. Companies who cannot provide themselves with adequate security, since cloud computing keeps data safer (Ried,2010) Despite the advantages of Cloud Accounting, following companies still utilise traditional Accounting Software: - Companies whose data is very sensitive and they dont want any third party to access it (Christauskas,2012) Businesses from whom they want the data should not be accessed by anyone and anywhere and who cannot directly monitor the usage. For cloud accounting software companies need to sign a usage contract. Thus, companies having uncertain future can go for traditional one. Thus, many business with limited budgets and having trust in evolution of technology are choosing cloud accounting services over traditional accounting software. However there many outstanding softwares to small emerging companies that are growing both cloud and hard drive based. They need to keep their finances straight to ensure success in future. References: Buyya, R., Yeo, C. S., Venugopal, S. (2008). Market-oriented cloud computing: Vision, hype, and reality for delivering it services as computing utilities. InHigh Performance Computing and Communications, 2008. HPCC'08. 10th IEEE International Conference on(pp. 5-13). Ieee. Foster, I., Zhao, Y., Raicu, I., Lu, S. (2008). Cloud computing and grid computing 360-degree compared. InGrid Computing Environments Workshop, 2008. GCE'08(pp. 1-10). Ieee. Christauskas, C., Miseviciene, R. (2012). Cloudcomputing based accounting for small to medium sized business.Engineering Economics,23(1), 14-21. Duan, J., Faker, P., Fesak, A., Stuart, T. (2013). Benefits and drawbacks of cloud-based versus traditional ERP systems.Proceedings of the 2012-13 course on Advanced Resource Planning. Ried, S., Kisker, H., Matzke, P. (2010). The evolution of cloud computing markets.Forrester Research. Alali, F. A., Yeh, C. L. (2012). 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