Running head: 1

Cloud Computing and The Cloud Ecosystem in Ghana

Daniel Danso (10882603)

University Of Ghana, Legon.

DCIT 306

Lecturer: Stephen Adingo

 2

Abstract

“This report explores the components that constitute the cloud ecosystem, including servers,

storage, networks, and virtualization, and analyzes the crucial relationship between virtualization

and cloud computing. The report highlights how virtualization technology enables the key

characteristics and benefits of cloud computing, such as resource pooling, scalability, and multi-

tenancy. It also discusses the interplay between virtualization and other cloud components and

presents insights into the overall functioning of the cloud ecosystem.”

 3

CLOUD COMPUTING AND THE CLOUD ECOSYSTEM IN GHANA

 4

Cloud Computing

“Cloud computing, as defined by the National Institute of Standard and Technology, is a

pay-per-use model that provides usable, convenient and on-demand network access to

configurable computing resource sharing pools that can be delivered quickly with minimal

administrative effort or interaction with service providers. These resources include software,

storage and services. This new computing model is characterized by its on-demand self-service

that makes it quick and easy to access for the everyday consumer. It is also made available to the

user globally through its extensive network access which makes its resources accessible to the

user as long as the user is connected to the internet. Another useful feature of cloud computing is

its elastic scalability which makes it versatile in the sense that it allows users to easily increase or

decrease the number of resources being used based on one’s convenience.”

Components of Cloud Computing

“The entire cloud computing system is made up of some basic key technologies help it to

function. These include a broadband network and internet architecture, storage, a data center and

virtualization technology. These components can be categorized into the front-end side and the

back-end side. The front-end refers to the portion of the cloud computing system visible to the

user and the back-end abstract the architecture of the cloud from the user.

The broadband network and internet architecture: The whole concept of cloud

computing relies on the interconnectivity between the cloud components in a network. This

network access is established and deployed by ISP’s who provide a connection to the backbone

of the internet. The network architecture is vital to a cloud network since it determines the

accessibility and reliability of the cloud network. A cloud network with a slow access rate is

bound to receive very little client service as compared to one with a faster access rate.
 5

Storage technology: A vital aspect of every cloud computing system is the storage and

handling of data. A cloud system must have a sophisticated and efficient method of storing data

and information to avoid data loss. This means that most storage units of cloud systems must

apply redundancy concepts such as RAID to reduce the probability of data loss and also increase

data access speeds.

Data center: Cloud systems must have a data center where all hardware resources can be

effectively organized and managed. Data centers are more advantageous as compared to the

usage of distributed systems since they facilitate energy sharing and increase the utilization of

shared IT resources and improves personnel efficiency.

Multi-tenancy: Virtualization enables multi-tenancy, where multiple users or

organizations can securely share the same physical infrastructure while maintaining isolation and

privacy. Virtual machines or containers act as isolated environments, preventing interference

between different tenants. This capability enables cloud providers to serve numerous customers

simultaneously, maximizing resource utilization.

Virtualization technology: This technology is one of the crucial components that make

cloud computing possible. Virtualization is a technique, which allows to share a single physical

instance of a resource or an application among multiple customers and organizations. It does by

assigning a logical name to a physical storage and providing a pointer to that physical resource

when demanded. Virtualization plays a very important role in the cloud computing technology,

normally in the cloud computing, users share the data present in the clouds like application etc.,

but actually with the help of virtualization users shares the Infrastructure.

The main usage of Virtualization Technology is to provide the applications with the

standard versions to their cloud users, suppose if the next version of that application is released,
 6

then cloud provider has to provide the latest version to their cloud users and practically it is

possible because it is more expensive.

To overcome this problem, we use basically virtualization technology, by using

virtualization, all servers and the software application which are required by other cloud

providers are maintained by the third party people, and the cloud providers has to pay the money

on monthly or annual basis. “

Types of Cloud Computing Services in Ghana

“In Ghana, there is a growing adoption of cloud computing among small and medium

enterprises (SMEs) which is significantly changing the nature of their business information

systems and how they’re developed and maintained. Specifically, cloud computing has

ameliorated the reliability and scalability of IT systems, giving way for these small and medium

enterprises to direct their limited resources on their main business. Cloud computing has hence

become one of the affordable solutions to modern businesses in Ghana as a result of its benefits.

MTN Ghana, a leading telecommunications company, has adopted cloud services to

enhance its operational efficiency and service delivery. They have adopted cloud-based customer

relationship management (CRM) solutions, enabling streamlined customer interactions and

improving overall customer experience.

Hubtel, a technology company in Ghana, provides cloud-based communication and

payment solutions to businesses. Through their cloud services, businesses can leverage SMS

messaging, voice calls, and digital payment integrations to enhance their customer engagement

and facilitate e-commerce transactions.

Cloud computing in itself can be classified into three types based on the various services

it can offer. These types are IaaS, PaaS and SaaS.

 7

IaaS

One of the most common of these types used in modern businesses in Ghana is IaaS

which stands for Infrastructure as a Service. IaaS provides IT infrastructure to users in the form

of services like storage and processing capabilities and can also provide highly scalable and on-

demand IT services based on hardware resources such as server and storage. These resources are

usually charged according to the cost of resources consumed. One downside of this service is

that it requires significant expertise to manage and configure the infrastructure.

PaaS

PaaS which stands for Platform as a Service is also a commonly used type of cloud

computing service. It serves to provide end-users with an internet based application development

environment including application programming interfaces and operating platforms and supports

various software or hardware resources and tools required for the entire life cycle of applications

from creation to operation. This service is usually billed based on the user’s login status. This

service is most commonly used by software developers who usually need a conducive

environment for running their software’s. Banking systems also rely on PaaS to back up client

data on a cloud database. A notable downside of this service is its limited control over the

underlying infrastructure, which may restrict certain configurations or software choices.

SaaS

SaaS is the most common cloud computing service in Ghana. It stands for Software as a

Service. Through SaaS cloud computing systems, the user is able to use software’s on the

internet through a standard web browser. SaaS can be used by general user in instances like the

use of the Google Calendar app or Gmail which is used by most Android users. It is also used by

enterprises to help with payroll processes, human resource management, collaboration, customer
 8

relationship management etc. Schools even use SaaS cloud computing systems for student

information management and grading of end of term reports. A disadvantage of this service is

that it has limited customization options as applications are pre-built and may not cater to unique

business requirements.”

Impact of Cloud Computing on the Business World in Ghana

“In Ghana, most small and medium enterprises are faced with a two-way dilemma as to

whether to adopt or not adopt the cloud computing concept mostly due to lack of information of

the concept and its relationship to organizational performance. To address these concerns and

thus motivate the wide adoption of cloud computing, this paper seeks to look on the benefits and

challenges of cloud computing for businesses in Ghana.

The merits of cloud computing include on-demand self-service, ubiquitous and reliable

network access, location independency, usage-based pricing, as well as transference of risk.

These are all motivating factors which can causes businesses in Ghana to outsource their data

into a cloud.

Advantages of cloud computing

Cost reduction and increased efficiency

Without cloud computing, businesses would have to make initial and subsequent

acquisition of IT infrastructure as well as maintenance of these equipment. But as a result of the

cloud, there will be reduction in cost and since the cloud operates 24/7, there will be no down

time which further means the business can operate more effectively to increase productivity.

Since businesses will only have to purchase the cloud space needed for operations, excess funds

can then be further invested into developing the business and future growth.

Reliability
 9

In the absence of cloud computing, businesses will have to break operations and employ

technicians whenever equipment breaks down. With the adoption of cloud computing businesses

will not have to worry about maintenance since all maintenance are abstracted from the end-user.

As a result, the business can work constantly and smoothly thereby satisfying its customers and

increasing their profit margins.

High-level Security

Companies that make use of cloud computing systems need not worry about security

measures since data and infrastructure can be encrypted with end-to-end encryptions which will

leave company data useless to any third-party that get their hands on private information. This is

because by taking advantage of modern cryptography techniques protected data or information

can only be accessed using either a two-way security key held by the user and the cloud

computing service provider or one-end security key held by only the user. This is to ensure

privacy and confidentiality between the cloud and the end-user.

Scalability

Depending on the type of business and the demand of resources, firms can grow their

business or scale it down since cloud systems are developed to adapt or fit to the sharp increases

and reductions in workload. This feature helps to reduce pressure on the business when the time

arrives.”

Challenges of cloud computing among businesses in Ghana

“Despite the benefits of the cloud and the increasing need to adopt it among leading

business in the country, it is equally important to know and understand the challenges and

problems that arise with the cloud so as to mitigate them when the need arises. As cloud

computing is a new technology, users do not have full control and understanding on its
 10

operability and hence might raise some concerns such as security breaches and violations from

hackers.

Security issues

Security is usually regarded as the foremost concern among users of cloud computing

systems since they do not have full control of these systems. Sensitive information and data

stored in the clouds can be subject to misuse without the owner’s knowledge. The provider

assumes full responsibility of any damage done but nevertheless the damage will be done. These

problems however can be mitigated in the drafting of Service Level Agreements to water down

any confusion between the parties.

Electrical Power and Network issues

Cloud computing systems are reliant on constant electricity and a sustainable or reliable

internet connection for optimum functionality. But sadly, these factors are not prevalent in

developing countries in this case Ghana. In most neighborhoods, slow and unstable networks and

frequent power outages serve as a deterrent against the application of cloud computing systems

in businesses that require instant and continuous service to user/customers. In most cases poor

bandwidth connectivity poses a nuisance to businesses since it leads to abrupt interruptions in

services which will lead to drastic economic implications on the business and customer

dissatisfaction.

Vendor Lock-In

Another concern that arises in the use of cloud computing systems is problem of data

transfer when the user intends to switch from one cloud system provider to another. Due to

unstable interoperability between cloud computing vendors and switching cost, transferring data

from one cloud system to another can be complex and costly.”

 11

Conclusion

“Cloud computing offers significant benefits, including cost savings, scalability, and

enhanced accessibility. However, businesses must carefully evaluate and address the associated

challenges and risks. Security concerns, potential data breaches, downtime, loss of control, and

compliance requirements require proactive measures such as robust security protocols, thorough

vendor assessments, data encryption, and regular backups. A well-planned cloud strategy,

coupled with effective risk management and mitigation strategies, can help organizations

leverage the benefits of cloud computing while ensuring data protection and maintaining control

over critical business processes.”

 12

References

Ezer Osei Yeboah-Boateng, Kofi Asare Essandoh, Factors Influencing the Adoption of Cloud

Computing by Small and Medium Enterprises in Developing Economies (Issue-4, February 2014

Batola David, Peace Enyonam Amoako and Addai Kyeremeh Emmanuel, Cloud Computing for

SMEs in Ghana; Benefits and contribution to organizational performance, Fiagya Rural

bank and Aspet ‘A’ company limited in the Techiman Municipality

Organization for Economic Co-operation and Development,

"Policy Brief: Financing SMEs and Entrepreneurs," 2006.

[Online]. Available: http://www.oecd.org/cfe/37704120.pdf.