Running head: COMPUTER 1

Clouding Computing

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Cloud Computing

Over the last decade, cloud computing has grown to change the face of how organizations

do business. More and more enterprises have been moving to the cloud to reduce unnecessary

overhead by offloading physical servers' responsibility to cloud providers. According to Galov

(2020), the need to provide data access from anywhere has seen the global public cloud

computing exceed $360 billion. Goodison speculates that "The percentage of worldwide IT

spending that's dedicated to the cloud will continue to accelerate in 2021" (p8. 2020). With the

effects of Covid-19 still lingering, businesses are expected to lay a foundation that increases their

agility. According to Goodison, "Cloud computing, which underpinned the world's economy,

global supply chains, and remote workforces during the coronavirus pandemic, will continue to

be an essential target for organizations looking for increased scalability, business continuity and

cost efficiency in 2021" (p1. 2021). The business will have to optimize and keep creating

security designs that will match the company's objectives. The topic for this article is licensing

requirements for cloud computing. We will focus on different requirements that a consumer must

be aware of before moving to the cloud.

Different types of cloud service delivery exist. Therefore, businesses have to consider

whether the application is licensed per VM, core, or for total infrastructure footprint before

moving to the cloud. Cloud computing services models exist as Platform as a Service,

Infrastructure as a Service, and Software as a Service. While the three aim at offering remote

cloud computing servers, their license deployment, terms, rules, and policies change with the

implemented infrastructure model. Therefore, businesses are expected to evaluate the licensing

terms before agreeing to move into cloud computing. Moreover, they are expected to ensure that

their cloud providers satisfy the consumer's regulatory, security, and legislative requirements.
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According to Mansfield (p.20, 2020), "No matter what type of license you select, make sure you

read all the fine print to avoid surprises down the road." The rise in cloud computing has seen

licensing requirements change due to the very nature of working online and the need to drive the

adoption of business products on a daily basis.

Every consumer is expected to be fully aware of their outsourcer right, license movement

rules, geography licensing terms, audit provisions, license grant, and license true-up rules to

determine their cloud readiness. According to SHI Staff (p1. 2017), "If you are considering a

move, be careful with what you transition; Your intentions may not line up with what is allowed

by your contract." It is the cloud engineer's responsibility to evaluate the vendor's model to

determine how the costs may change from this dedicated model in the future. Besides,

consumers may easily identify the vendors who work better under their software licensing

policies. The omission of a certain term should always be noted as part of risk analysis. It is

worth noting that company cloud engineers are responsible for broken contracts.

Understanding the licensing requirements ensures cloud engineers implement software

works as per the requirements. According to Cuelogic Technologies (2020), they can prepare

their application for data migration to the cloud, evaluate the cost of migration, and choose their

preferences based on the business needs. Besides, they can prepare for migration challenges by

adopting a clear migration strategy. The licensing requirements ensure cloud engineers can

delineate the terms under which businesses may use the cloud software. They can prevent

potential lawsuits and find the right licensed agreement to manage company applications.

According to KMPG (2016), reviewing the standard terms offered by the cloud provider helps

consider additional clauses that may be available for relevance. This strategy ensures the

justification for the decisions made with respect to adopting cloud services.
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References

Cuelogic Technologies. (2021, January 17). What are the benefits of cloud migration? Reasons

you should migrate. Cuelogic Technologies Pvt. Ltd.

https://www.cuelogic.com/blog/benefits-of-cloud-migration

Galov, N. (2020, December 4). 25 Must-Know Cloud Computing Statistics in 2020. Hosting

Tribunal. https://hostingtribunal.com/blog/cloud-computing-statistics/#gref

Goodison, D. (2020, November 21). 10 Future Cloud Computing Trends To Watch In 2021.

CRN. https://www.crn.com/news/cloud/10-future-cloud-computing-trends-to-watch-in-

2021?itc=refresh

KMPG. (2016). Moving to the Cloud: Key Considerations (No. CRT054154). Create Graphics.

http://www.kpmg.com/

Mansfield, M. (2020, December 28). How Does Cloud Licensing Work for Your Environment?

Small Business Trends. https://smallbiztrends.com/2017/04/how-does-cloud-licensing-

work.html

SHI Staff. (2017, June 15). 6 software license terms to consider before moving to the cloud. The

SHI Blog. https://blog.shi.com/software/6-software-license-terms-consider-moving-

cloud/