Abstract

This report explains the implication, opportunities and risk inherent in cloud computing
models as it relates to the migration from traditional computation method to a more
innovative means. The report consist of different parts which includes some facts about cloud
computing and the reasons why it is important for organizations. The report also discussed
some of the benefits (advantages) challenges (disadvantages) and security concerns about
cloud computing. The report concluded with the issues related with migrating to the cloud
while focusing on some important things to note.
1. Introduction
The introduction of the Information Technology (IT) has helped in improving the lives of
people and businesses as it relates to conveniences and ease of carrying out business. One of
the newest innovation in the IT industry in the 21 st century is the development of cloud
computing which is also known as on-demand computing. With this new innovation and
technology, SMS companies such as those in the manufacturing firms tend to enjoy higher
performance at a relative lower cost when compared to the existing infrastructures (Rajani
and Rajender, 2014). As it relates to internet based computing, cloud storage environment is a
services that makes use of a shared computing system that makes use of different computers
in other to achieve a given task on demand (Khalil, Al-Shqeerat, Faiz, AI-Shrouf,
Mohammad, Hassen, 2017). The introduction of cloud computing offers a systematic shift in
the way organizations such as the shoe manufacturing company invest in their IT resources.
With this new model, the need for an organization to invest a large amount in the purchase of
some IT resources are minimized. With the help of cloud computing, businesses can now
outsource its IT need to a cloud computing service provider and pay any time they make use
of the services. The science of cloud environment is a computing model that offers different
pools of computing resources that the organization users can easily access via the internet.
The basic principle that cloud computing deals with involves the movement or migration of
IT resources from a local computer to the network. This unique means of sharing data and
information is a great way of saving cost for cash strapped IT departments of organizations
that wishes to deliver better services. With the help of the cloud computing system, the
structure offers the organization more access to infrastructures such as server, network,
services, application, storage and other components that may be needed without the
organization recourse to purchasing and investing huge cash. In deploying cloud computing
in an organization, it can either be as a private cloud, where the cloud services is wholly
owned by the organization since it was developed by them and run using their personal
infrastructures. The other is community cloud where different organizations shares a
particular infrastructure which is designed to support a specific community. The public
infrastructure on the other hand involves a cloud computing system that serves the general
public and it is owned and managed by a cloud selling organization. Finally, the hybrid cloud
system involves a combination of two or more cloud infrastructure such as private cloud and
community or the public cloud) Thee integration of cloud computing offers very unique
advantages and benefits to IT departments of organizations in relation to the traditional
system of storage and networking. However, there are some challenges, risks and pitfalls that
exist while migrating to these servers that an organization needs to deal with in other to
remain competitive in the market.
This report will critically present a state-of-the art report into the world of cloud computing
technology while highlighting the strengths, weakness, opportunities, and threats (risk) that
an organization might face in migrating to the cloud. Also the report will present to the textile
company some steps that they can follow in other to overcome these challenges
2. Background to Cloud Computing
Different organizations and institutions has defined the term cloud computing in both the
academic and the industrial sector. However, the definition given by the U.S National
Institute of Standards and Technology (NIST) 3
had received the included some of the
important concepts that is commonly used in the computing environment. As defined by
NIST in 2009 and reviewed in 2011, cloud computing is seen as a model that enables a
convenient, on-demand access to a shared pool of computing resources which includes
(Networks, application, servers, services and storage) that can be rapidly provisioned and
released with minimal management effort or service providers interference. This definition
has received an industry-wide acceptance. This cloud model defined by the National Institute
of Standards and Technology is made up of five very important characteristics, three service
models and four deployment models ()
Almost every organization in this 21st-century are serious about the protection of their
information but this rapid growth in the embrace of cloud computing has also lead to so many
security challenges for the users and providers.
This report explores some of the approaches that can be used in setting-up, configuring and
virtual machine. More so, this report will show some of the opportunities, challenges and
risks associated with migrating IT resources to cloud computing.
3. Cloud Storage and Its Architecture
As defined by the National Institute of Standards and Technology cloud storage allows users,
customers and companies an opportunity to store their information and data within the cloud
without the need for the use of local systems. With this arrangement, data and information is
easily accessed via network connectivity and client services. This arrangement offers a great
advantage to the users, customers and companies since they can access their data from their
different locations. Cloud storage comes with different unique features which includes
availability, durability and performance (data can easily be accessed in a timely fashion) (4).
Cloud storage comes in different styles and forms. Some of the cloud storage systems stores
electronic mail or digital images on the web, while other storage devices comes with the
functionality that enables it to handle different digital information. Some of these cloud
storage systems comes with small operation system while others has large storage system that
all the materials that fills it up can cover a large warehouse. The architecture of cloud
computing comes in three major layers. These layers is seen as the cloud infrastructure
(IaaS), the cloud application platform (PaaS), and the cloud application software (SaaS).
4. Cloud Computing and Service Delivery Models
Cloud computing delivery models comes in different forms when setting up and configuring
the cloud environments. Some of these service delivery models includes
4.1 Infrastructure as a Service (IaaS)
This is a single tenant type of cloud setting that allows the cloud computing vendor to
dedicate its resources to its contracted clients which they are expected to share. In this
arrangement, the clients makes use of it at a pay-per-use fee. The vending company provides
services ranging from processing, networks, storage and other essential computing resources
which the customers would be able to deploy and run arbitrary software that includes
applications and operating systems. The IaaS platform or set-up only offers the users with
basic security such as (load balancing, perimeter firewall etc.) and applications.
4. 2. Platform as a Service (PaaS)
This type of setting is seen to be a set of software and tools that are hosted on the service
providers servers. These framework is one layer above the IaaS on the cloud computing
stake. It also offers an integrated set of developer environment that allows users to tap and
develop its own applications. It offers developers with a service that consist of a complete
software development life cycle management, from planning to maintenance [1].
4.3. Software as a Service (SaaS)
This is a software distribution model that allows the different application to be hosted by a
licenced vendor or the service provider and it is made available to other end-users over a
secure network such as the internet. The unique thing about the SaaS based applications
architecture is that it is specifically designed to support different concurrent users at once
(Multi-tenancy). (4)
4.4. Anything as a Service (XaaS)
This service framework is more general in the deployment of its services. The services can
come in different type and X” as the XaaS can easily be substituted by hardware, software,
data business, infrastructure, monitoring, security, It and others. New server models are
continuously been developed every day and this includes Cloud as a Service (CaaS), IT as a
Service, Identity as a Service, Management as a Service (MaaS), Hardware as a Service
(HaaS), Storage as a Service (HaaS), Privacy and Anonymization as a Service and lots of
other new services (10).
5. Cloud Deployment Models
According to (), the deployment of cloud computing model comes in four major forms. These
deployment models include
I. The Public Cloud Model
This model describe the traditional setting of cloud computing where the resources are
uniquely provided based on a self-service basics across the internet through an off-site vendor
or provider. Here bills are shared on a fine-grained utility computing basis. The public cloud
models are not fully secured when compared to the other deployment models since it place an
additional burden of making sure that all the needed applications and data that can be
accessed on the public cloud are not exposed to malicious attacks.
II. Community Cloud Model
These deployment model shares some similarities with the public cloud except that the
format allows only a limited number of the cloud community members/users. According to
(), the community cloud model can either be owned jointly by the community members or by
a third-party cloud provider that offers a public cloud but with limited accessibility (1)
III. The Private Cloud Model
This cloud deployment model is fully set-up within an organization’s internal data base or
center. Here cloud users can easily share virtual applications and scalable resources that are
provided by the cloud vendors. The private cloud model differs from the public cloud model
since the deployment, resources and applications are fully managed by the organization
themselves. The usage of this deployment model is more secure than that of the public
deployment. As stated by (12), only the organization and the selected stakeholders are
privileged to gain access and operate on a giving private cloud.
IV. The Hybrid Cloud
With the hybrid cloud deployment, it is linked to one or more external cloud services but are
centrally managed, provisioned as a single unit while been circumscribed by a secure network
(14). This private cloud offers a virtual IT solutions through a combination of both the private
and the public clouds. It offers more data security and easy of access through the internet,
while offering uses with an open architecture that allows smooth interface with the other
management systems.
6.1. An Appraisal of Advantage of Cloud Computing
There are numerous benefits and opportunities that arises from the adoption of cloud
computing model in any organization. With the different mix of delivery such as (SaaS, IaaS
and PaaS) and deployment model (Public, community, private and hybrid) The European
Commission (2012) and Olavsmd (2015) stated that cost efficiency is not really the major
advantage for the adoption of cloud computing not minding that it is necessary. As seen from
the report from the Technology Innovation Survey carried out in 2014, it was stated that that
they are four major benefits connected with the cloud computing technology which includes
accelerated time to market (10%), faster innovation cycle (11%), cost reductions (22%) and
improved business efficiencies/productivity (37%). Other experts such as Bisson (2013),
Oxford Economics (2014) and Pratt (2014) listed increased agility, improved collaboration
among business units and partners, creating of new business opportunities and models,
geographic expansion and new opportunities for SMEs as some of the benefits of adopting
the cloud computing framework. As seen from the estimates carried out by the McKinsey
Global Institute, adopting of cloud computing will make productivity to reach 20-30%. They
result from The European Commission (2012) also listed a reduction in infrastructure and
facilities footprints and a high task standardization and automation as part of the benefits of
cloud computing. (The European Commission, 2012; Olavsmd, 2015; Carr, 2005 and
Agarwal, 2014) stated that some aspect of cloud computing can also result to lower cost
which includes cost reduction as a result of lowering of energy consumption, elimination or
reduction of waste as it relates to hardware utilization and reduction of cost as it relates to
hardware maintenance. All these factors are related with cloud computing as it has an impact
on faster innovation cycle in the organization. It also offers easy and cheap access to tools
that would help in the development and testing of new products such as Big Data Tools
(Davenport, 2014; and Intel IT Center, 2014)
6.2. Appraisal of Opportunities for Cloud Computing
So many opportunities exist for businesses that wishes to migrate their businesses to the
cloud. The utilization of the cloud computing exposes numerous organizations such as the
textile company in focus with numerous opportunities to implement new business models. A
good example is the car sharing model that was developed by Zipcar Company is a good
example of cloud computing opportunities. These cloud computing model is based on a
complex management of set of cars that are shared by numerous users. This would not have
been feasible without the help of an advance IT system where one of the most vital part of the
framework is cloud computing (Griffith, 2009). Also an improvement in the collaboration
between different business units are made possible due to the provision of cloud computing
and its continuous application development. These opportunities offered by this helps in the
building and implementation of newer business models and opportunity for more expansion
geographically. More so, the cloud computing model offers Small and Medium Enterprises
(SMEs) the needed opportunities most especially in the area of cost maximization. In the case
of small SMEs such as the textile company under study, there are usually small level of
capital at these companies disposal but they are offered the opportunity to access software
and hardware which would have not been possible in the traditional computation model. This
might be due to financial barriers, in relation to the software and hardware purchase and the
employment of experts and skilled IT personals (European Commission, 2012). According to
Mohammad and Zahid (2013), some of the opportunities that companies are expected to gain
when they migrate to the cloud framework is encompassing.
6.3. Challenges and Drawbacks with Cloud Computing
Cloud computing as it is in the case of most IT solutions comes with numerous benefits and
opportunities but it also comes with some set-back and challenges. As seen from the
Technology Innovation Survey (2014), the challenges faced as a result of cloud computing
can be classified into three broad categories. These includes risk management (15%),
technological complexity (16%) and security (23%). The issue of security is the most
pressing challenge faced by most companies migrating to the cloud (Bisson, 2013). Cloud
Security Alliance in their study stated that the different types of security concerns facing
organizations includes data loss/leakage, shared technology vulnerabilities, service, insecure
application program interface and traffic hijacking (HP, 2012). However, the level of risk is
depended on different factors such as the nature of the cloud been used, the technologies that
is been put to use, the service providers, data encryption and the procedures it uses. Another
factor that can affect cloud computing is the issue of trust in relation to the cloud-based
solutions. Such issues boils down to placing sensitive documents and data on third-party
server somewhere in the cloud. The issue of acceptability as a result of cultural and structural
changes can be a source of challenge for the implementation of cloud computing in any
organization. Other challenges includes legal challenges as it relates to the regulations in
respect to data storage and accessibility to the data, data ownership, privacy and data
protection issues, etc.
6.4. Security Issues In Cloud Computing
According to KPMG, 2010, Rosado, Gómez, Mellado and Fernández-Medina, 2012 and
Mather, Kumaraswamy, and Latif, 2009), could computing is faced with some significant
barriers to the adoption of this technological innovation. Since cloud computing is relatively a
newer method of computing, there is still some level of uncertainty about the security at
every level and the right step in which the application security can be moved to. This has
made security challenge the number one concern in the issue of cloud computing (Mather,
Kumaraswamy, and Latif, 2009).

7. Issues associated with setting up and configuring of the cloud environment

In setting up and configuring of the cloud environment from the traditional method there are
potential issues and challenges that might be encountered in the implementation. It was seen
from the workshop that in setting up and configuring the cloud environment, different aspect
of the setup needs to be carefully analyzed nd planned. To do this, it is important for an
organization that wants to migrate to the cloud to have a clear and comprehensive cloud
strategies which includes cloud migration plans. Generally a strategy for the utilization of
cloud-based solutions and migration should be based on the following key phases

Fig. 1 Cloud utilization strategy and its three phases (source: own source)
From the fig 1, it can be seen that in migrating to the cloud, there will be a need for
preliminary assessment phase to determine the usefulness of using the cloud computing
model as it relates to the organization usefulness. Things to ascertain includes
1 Ascertain if the cloud computing method aligns with the culture of the organization
 2 Ascertain if the cloud computing method aligns with the objectives of the
organization and what the migration goals are (cost reduction, improvement of
productivity, new business models implementation, increased agility, etc.)
3 Appraisal of the potential risks that might be encountered in the migration process
4 Ascertaining the key stakeholders that would be impacted by the migration process
and how.

In determining an organization readiness to migrate to the cloud as seen in fig 2. The

following as posited by McKinsey are the six key elements in the assessment of the readiness
for cloud computing
 A well-defined and well understood workflows to support cloud offerings,
 Highly automated IT infrastructure
 The right technical skills and training to support cloud of company’s IT department
 Effectively broken down/collapsed by company's IT department technological silos
(e.g., Windows, UNIX, storage, networking)
 Extensive self-service options (e.g., development/test servers) offered by the company’s
IT infrastructure
 A strong understanding of the issues connected with forecasting the demand for cloud
offerings.
If a positive assessment is reached, the next option will be the development of the migration
plan. This should include
 Determine the final migration goals and the business process that would support the
cloud computing
 Selecting the right deployment model
 Selection of the right delivery models (SaaS, PaaS and IaaS)
Other important issues which have to be planned include:
 The steps to follow in integrating the cloud computing model with other functionality
that would still remain traditional
 Ascertain a disaster recovery plan
 Steps to overcome cultural resistance especially within the IT department.
 Organizing necessary training always
8. Conclusion
Different surveys on cloud computing has clearly shown the dynamic growth in the cloud
computing market (Cisco, 2018). It is unequivocally clear that the utilization of the cloud
services offers an organization with numerous benefits and opportunities. These benefits are
not only related to the reduction in cost of IT services but it also has a direct effect on faster
innovation cycle, increase in the implementation of new business models and an increase in
agility. Also, most organization are now seeing that without cloud computing, there would be
loads of difficulties in storing and analyzing big data which are vital for an market success.
But the utilization of cloud computing also expose the organization to some challenges and
risk such as the reliability of the cloud, privacy, data security etc. Finally, in developing a
strategy for the migration from the traditional to the cloud, it is important to follow a well
thought out plan and this should not only be related to just the technical issues but to also the
organizational and legal aspect.