Analysis of applications and success factors of cloud computing for small- and medium-sized businesses
©2015
Textbook
86 Pages
Summary
Cloud computing is gaining in importance in the industry, and especially within small- and medium-sized companies due to the many benefits that may be generated in terms of cost savings, faster time to market, scalability, cost flexibility, and the optimization of resources. Today, cloud computing is considered as the next IT revolution, and the number of articles, books, papers, and technical reports flood literature. Within the scope of this book, relevant cloud computing applications for small- and medium- sized companies are identified, and the key success factors for the adoption of cloud computing services are analyzed based on the empirical investigation performed as part of this work. Finally, the benefits and constraints of the different cloud computing service models are presented including also the state-of-the-art research in the cloud computing area, and a summary of the most important results.
Excerpt
CONTENTS
Kurzfassung
1
Abstract
2
1 Introduction
8
1.1
Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
1.2
Objective and structure
. . . . . . . . . . . . . . . . . . . . . . . . .
8
1.3
Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
2 Fundamentals
11
2.1
Fundamentals of software applications
. . . . . . . . . . . . . . . . . 11
2.1.1
Definition and characteristics
. . . . . . . . . . . . . . . . . . 11
2.1.2
Type of software applications . . . . . . . . . . . . . . . . . . 11
2.1.2.1
Email communication . . . . . . . . . . . . . . . . . 11
2.1.2.2
Office applications . . . . . . . . . . . . . . . . . . . 12
2.1.2.3
Project management . . . . . . . . . . . . . . . . . . 12
2.1.2.4
Team collaboration . . . . . . . . . . . . . . . . . . . 12
2.1.2.5
Customer relationship management . . . . . . . . . . 12
2.1.2.6
Procurement . . . . . . . . . . . . . . . . . . . . . . 13
2.1.2.7
Web development . . . . . . . . . . . . . . . . . . . . 13
2.1.2.8
Unified messaging
. . . . . . . . . . . . . . . . . . . 13
2.1.2.9
Enterprise resource planning . . . . . . . . . . . . . . 13
2.1.2.10 Fleet management . . . . . . . . . . . . . . . . . . . 14
2.1.2.11 Human resource
. . . . . . . . . . . . . . . . . . . . 14
2.2
Fundamentals of cloud computing . . . . . . . . . . . . . . . . . . . . 14
2.2.1
Definition and characteristics
. . . . . . . . . . . . . . . . . . 14
2.2.2
Computer topology evolution . . . . . . . . . . . . . . . . . . 16
2.2.2.1
Mainframe
. . . . . . . . . . . . . . . . . . . . . . . 16
2.2.2.2
Client-Server . . . . . . . . . . . . . . . . . . . . . . 17
2.2.2.3
Mesh topology . . . . . . . . . . . . . . . . . . . . . 17
2.2.3
Cloud computing service models . . . . . . . . . . . . . . . . . 19
2.2.3.1
Infrastructure as a Service . . . . . . . . . . . . . . . 20
2.2.3.2
Platform as a Service . . . . . . . . . . . . . . . . . . 20
2.2.3.3
Software as a Service . . . . . . . . . . . . . . . . . . 21
2.2.4
Advantages and limitations of cloud computing . . . . . . . . 21
2.2.4.1
Advantages of cloud computing . . . . . . . . . . . . 21
2.2.4.2
Limitations of cloud computing . . . . . . . . . . . . 22
2.3
Fundamentals of success factors . . . . . . . . . . . . . . . . . . . . . 22
2.3.1
Definition and characteristics
. . . . . . . . . . . . . . . . . . 22
2.3.2
Methods to identify success factors . . . . . . . . . . . . . . . 23
2.3.2.1
Analysis of demand . . . . . . . . . . . . . . . . . . . 23
2.3.2.2
Analysis of competition . . . . . . . . . . . . . . . . 24
2.4
Fundamentals of small- and medium-sized businesses . . . . . . . . . 24
2.4.1
Definition and characteristics
. . . . . . . . . . . . . . . . . . 24
2.4.2
Definition of small- and medium-sized businesses . . . . . . . . 25
2.4.2.1
Small-sized businesses . . . . . . . . . . . . . . . . . 25
2.4.2.2
Medium-sized businesses . . . . . . . . . . . . . . . . 25
3 State-of-the-art research
26
3.1
Cloud computing in the insurance industry . . . . . . . . . . . . . . . 26
3.2
Cloud computing in the logistics sector . . . . . . . . . . . . . . . . . 27
4 Empirical survey
28
4.1
Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
4.2
Method
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4.3
Sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
4.3.1
Industry distribution . . . . . . . . . . . . . . . . . . . . . . . 30
4.3.2
Employees distribution . . . . . . . . . . . . . . . . . . . . . . 32
4.3.3
Revenues distribution . . . . . . . . . . . . . . . . . . . . . . . 34
5 Analysis of cloud computing applications for small- and medium-sized
businesses
36
5.1
Acceptance and usage of cloud computing
. . . . . . . . . . . . . . . 36
5.1.1
Acceptance of cloud computing . . . . . . . . . . . . . . . . . 36
5.1.2
Usage of cloud services models . . . . . . . . . . . . . . . . . . 38
5.2
Cloud computing solutions . . . . . . . . . . . . . . . . . . . . . . . . 40
5.2.1
Infrastructure as a service solution
. . . . . . . . . . . . . . . 40
5.2.1.1
Storage . . . . . . . . . . . . . . . . . . . . . . . . . 41
5.2.1.2
Processing / Computing power . . . . . . . . . . . . 41
5.2.2
Platform as a Service solution . . . . . . . . . . . . . . . . . . 43
5.2.2.1
Application deployment and hosting . . . . . . . . . 43
5.2.2.2
Storage . . . . . . . . . . . . . . . . . . . . . . . . . 43
5.2.2.3
Development environment . . . . . . . . . . . . . . . 43
5.2.3
Software as a Service solution . . . . . . . . . . . . . . . . . . 45
5.2.3.1
Team collaboration . . . . . . . . . . . . . . . . . . . 46
5.2.3.2
Email communication . . . . . . . . . . . . . . . . . 46
5.2.3.3
Web development . . . . . . . . . . . . . . . . . . . . 47
5.2.3.4
Customer relationship management . . . . . . . . . . 47
4
5.2.3.5
Project management . . . . . . . . . . . . . . . . . . 47
5.2.3.6
Unified messaging
. . . . . . . . . . . . . . . . . . . 47
5.2.3.7
Office documents . . . . . . . . . . . . . . . . . . . . 48
5.2.3.8
Enterprise resource planning . . . . . . . . . . . . . . 48
5.2.3.9
Fleet management . . . . . . . . . . . . . . . . . . . 48
5.2.3.10 Human resource management . . . . . . . . . . . . . 48
6 Analysis of success factors for cloud computing for small- and medium-
sized businesses
50
6.1
Security related factors . . . . . . . . . . . . . . . . . . . . . . . . . . 50
6.1.1
Overview
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
6.1.2
Data security . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
6.1.3
Data storage in Germany . . . . . . . . . . . . . . . . . . . . . 51
6.1.4
Security audits . . . . . . . . . . . . . . . . . . . . . . . . . . 51
6.2
Cost related factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
6.2.1
Overview
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
6.2.2
Low cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
6.2.3
Price transparency . . . . . . . . . . . . . . . . . . . . . . . . 53
6.3
Technology related factors . . . . . . . . . . . . . . . . . . . . . . . . 53
6.3.1
Overview
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
6.3.2
Service stability . . . . . . . . . . . . . . . . . . . . . . . . . . 54
6.3.3
Interoperability . . . . . . . . . . . . . . . . . . . . . . . . . . 54
6.3.4
Customization . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.4
Support related factors . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.4.1
Overview
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.4.2
Support in german language via phone and email . . . . . . . 56
6.4.3
On-site support . . . . . . . . . . . . . . . . . . . . . . . . . . 56
6.4.4
Support regarding cost efficiency
. . . . . . . . . . . . . . . . 57
6.5
Supplier related factors . . . . . . . . . . . . . . . . . . . . . . . . . . 57
6.5.1
Overview
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
6.5.2
Headquarter in Germany . . . . . . . . . . . . . . . . . . . . . 57
6.5.3
Customer references
. . . . . . . . . . . . . . . . . . . . . . . 59
6.5.4
Certified employees . . . . . . . . . . . . . . . . . . . . . . . . 59
6.5.5
Market leadership . . . . . . . . . . . . . . . . . . . . . . . . . 59
7 Conclusions
61
A Online survey
63
A.1 Screening
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
A.1.1 Frage S1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
A.1.2 Frage S2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
A.1.3 Frage S9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
5
A.1.4 Frage S11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
A.2 Derzeitige Ausstattung an EDV/IT-Lösungen . . . . . . . . . . . . . 64
A.2.1 Frage G5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
A.2.2 Frage G6/1a, Filter: Frage G5 Pos. 1 (E-Mail Kommunika-
tion) geklickt . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
A.2.3 Frage G6/2a, Filter: Frage G5 Pos. 2 (Unified Messaging)
geklickt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
A.2.4 Frage G6/2b , Filter: Frage G5 Pos. 2 (Unified Messaging)
geklickt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
A.2.5 Frage G6/3a , Filter: Frage G5 Pos. 3 (Textbearbeitung,
Tabellenkalkulation und Präsentationen) geklickt . . . . . . . 66
A.2.6 Frage G6/4a , Filter: Frage G5 Pos. 4 (Projektmanagement)
geklickt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
A.2.7 Frage G6/5a , Filter: Frage G5 Pos. 5 (Teamzusammenarbeit)
geklickt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
A.2.8 Frage G6/6a , Filter: Frage G5 Pos. 6 (Kundenkontaktman-
agement bzw. Kundenpflege - CRM) geklickt
. . . . . . . . . 68
A.2.9 Frage G6/7a , Filter: Frage G5 Pos. 7 (Betriebswirtschaftliche
Belange) geklickt . . . . . . . . . . . . . . . . . . . . . . . . . 68
A.2.10 Frage G6/8a, Filter: Frage G5 Pos. 8 (Personalwesen) geklickt 69
A.2.11 Frage G6/9a, Filter: Frage G5 Pos. 9 (Aussendienstunter-
stützung) geklickt . . . . . . . . . . . . . . . . . . . . . . . . . 69
A.2.12 Frage G6/10a, Filter: Frage G5 Pos. 10 (Unterstützung des
Einkaufsprozesses) geklickt . . . . . . . . . . . . . . . . . . . . 70
A.2.13 Frage G6/11a, Filter: Frage G5 Pos. 11 (Web Applications
Development) geklickt . . . . . . . . . . . . . . . . . . . . . . 70
A.2.14 Frage G7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
A.2.15 Frage G8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
A.2.15.1 Antwortmöglichkeiten: . . . . . . . . . . . . . . . . . 72
A.2.16 Frage G10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
A.2.17 Frage G11, Filter: G10 Pos. 1-2 . . . . . . . . . . . . . . . . . 73
A.2.18 Frage G12, Filter: G10 Pos. 3-5 . . . . . . . . . . . . . . . . . 73
A.2.19 Frage G13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
A.2.20 Frage G14, Filter: Frage G13 Pos. 3-4 geklickt ("kommt in
Frage"/ "in nächster Zeit geplant") . . . . . . . . . . . . . . . . 73
A.2.21 Frage G15 , Filter: Frage G13 Pos. 3-5 geklickt ("kommt in
Frage"/ "in nächster Zeit geplant"/"wird bereits genutzt") . . . 73
A.2.22 Frage G16, Filter: Frage G15_1 Pos. 1-2 ("SaaS wird bereits
genutzt", "Nutzung ist geplant") . . . . . . . . . . . . . . . . . 74
6
A.2.23 Frage G21, Filter: Frage G15_3 Pos. 1 ("IaaS wird bereits
genutzt") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
A.2.24 Frage G22, Filter: Frage G13 Pos. 3-5 geklickt ("kommt in
Frage"/ "in nächster Zeit geplant"/ "wird bereits genutzt") . . . 75
A.2.25 Frage G23, Filter: Frage G13 Pos. 3-5 geklickt ("kommt in
Frage"/ "in nächster Zeit geplant"/ "wird bereits genutzt") . . . 75
A.2.26 Frage G24, Filter: Frage G13 Pos. 3-5 geklickt ("kommt in
Frage""in nächster Zeit geplant""wird bereits genutzt")
. . . . 75
A.2.27 Frage G25, Filter: Frage G13 Pos. 3-4 geklickt ("kommt in
Frage"/"in nächster Zeit geplant") . . . . . . . . . . . . . . . . 75
A.2.28 Frage G26, Filter: Frage G13 Pos. 1-4 geklickt ("noch nichts
von Cloud gehört"/"kommt nicht in Frage"/"kommt in Frage"/"in
nächster Zeit geplant") . . . . . . . . . . . . . . . . . . . . . . 76
List of Figures
77
List of Abbreviations
78
Bibliography
79
7
CHAPTER 1
Introduction
1.1
Context
The way people and companies are communicating and interacting with each other
is nowadays very different than decades ago. The standalone mainframe solution in
charge of processing information was enhanced with client-server solutions. With
the propagation of the internet, quick distribution of information and the interwork-
ing among systems started playing an important role. Today, new technologies are
enabling companies to virtualize the infrastructure and execute applications using
the internet, opening immense possibilities of using software and information tech-
nologies "in the cloud".
Cloud computing is considered as the next IT revolution as well as just a hype. The
term is not only found in several articles, specialized magazines, books and confer-
ences, but it is also a subject widely discussed in the consulting industry.
Focusing on the industry, cloud computing is gaining importance in many small-
and medium-sized companies due to the many benefits in terms of cost savings,
faster time to market, mobility and flexibility, among others. Additionally, small-
and medium-sized companies using cloud computing services can concentrate on the
core business and do not need to invest any effort in setting up and running an own
infrastructure and software, which can be replaced with cloud computing solutions.
1.2
Objective and structure
In the scope of this book, cloud computing applications for small- and medium-sized
companies are identified as well as the key success factors for adoption of cloud com-
puting services are analyzed based on the empirical investigation performed in scope
of this work. The advantages and disadvantages of the different cloud computing
service models are also presented including the state-of-the-art research in the area.
Additionally, an analysis of the acceptance and current usage of cloud computing in
small- and medium-sized businesses is included.
This book is divided into seven chapters:
Chapter 1 gives a short introduction and describes the structure of the document.
Chapter 2 gives basic information about the different software applications used in
the industry. Additionally, the term cloud computing is introduced as well as the
fundamentals of the success factor's theory. Finally, the forms and characteristics
of small- and medium-sized businesses are explained.
Chapter 3 presents the state-of-the-art research in cloud computing and summarizes
some studies available in the literature, which focus on the cloud computing model
and its implementation in different industry branches. The main results concerning
applications and key success factors for adoption of cloud computing services are
also presented.
Chapter 4 gives information about the empirical investigation performed within the
scope of this book and presents the method used and the survey's sample.
Chapter 5 presents the results of the empirical investigate and analyzes the usage of
cloud computing solutions and of the most significant cloud applications for small-
and medium-sized businesses.
Chapter 6 outlines the key success factors for adoption of cloud computing services
based on the empirical investigation.
Chapter 7 summarizes the analysis of applications and success factors for small- and
medium-sized business which were analyzed in this book.
1.3
Methods
Diverse specialized literature and internet websites were used for the preparation
of this book. The literature used focuses mainly on cloud computing. The most
relevant aspects handled in this literature are:
· The implementation and acceptance of cloud computing in different branches
· The relevance of cloud computing as a new option for companies
· The opportunities and risks of using cloud computing from a corporate point
of view
· The strategical approach of cloud computing
The complete literature is available in the library of the Bonn-Rhine-Sieg University
of Applied Sciences in Rheinbach and Sankt Augustin, Germany.
9
Many computer related definitions were taken from business informatics books as
well as from experienced and specialized magazines prepared by companies with a
broad cloud computing theoretical and practical experience like T-Systems. Cloud
computing related definitions were taken also from specialized research companies
pioneers in the cloud computing area like Gartner research and Forrester research.
The websites from salesforce and the "initiative cloud services made in Germany"
were also important sources used in this work.
Some investigations already done in the cloud computing area were used within the
scope of this book: the diploma thesis investigating the application of cloud com-
puting in E-business
1
gives a good overview to cloud computing and its application;
an empirical investigation performed by the Fraunhofer institute
2
related to the ap-
plication of cloud computing in the health insurance area provides good information
about the practical use of cloud computing. This last study gave good guidelines
for the empirical studies done in this work.
Finally, an empirical investigation was done as part of the book, which has been
performed in cooperation with the cloud services business unit of Deutsche Telekom.
The study consisted of an online survey directed to IT decision makers of small- and
medium-sized companies. A total of 613 companies had participated in the survey.
The main focus of this survey was the identification of relevant cloud computing
applications and the key success factors for the adoption of cloud computing services.
1
[11]Möller, Christian: Cloud Computing-Einsatz im E-Business, 2010
2
[23]Weidmann, Monika; Renner, Thomas; Rex, Sascha:
Cloud computing in der Ver-
sicherungsbranche, 2010
10
CHAPTER 2
Fundamentals
2.1
Fundamentals of software applications
2.1.1
Definition and characteristics
Software applications
1
are used to perform specific tasks using computer systems.
In the last years, software applications gained an important role for facilitating the
process of many tasks in parallel and improving the efficiency in the companies.
An application software
2
may consist of a single program, such as a specific invoice
program or a chat program. It may be also a collection of programs or software
packages that interact closely together to accomplish different tasks, such as spread-
sheet or text processing functions. This software is commonly known as software
suite. There are also very specific software applications used for engineering, pro-
cess automation or billing processing. Finally, complex software applications used
to coordinate the different aspects of the value chain management play a key role in
the companies as the different processes are controlled and managed from a unique
application.
2.1.2
Type of software applications
Following sections present the most relevant software applications used in a wide
range of industries.
2.1.2.1
Email communication
Email communication software
3
allows to send and receive text messages including
also files, audio and video independently of the platform used. It is possible to send
email messages to different receiver. It is not required that the users are online in
order to receive the messages as they are stored in the exchange servers.
Email software is one of the most used applications in companies.
1
See [44] Webopedia, IT Business Edge: Application software definition,
<http://www.webopedia.com/TERM/A/application.html>
2
See [37] Open projects software: Software definition,
<http://www.openprojects.org/software-definition.htm>
3
See [50] Holey, Thomas, et al: Wirtschaftsinformatik, 2007, p. 279
2.1.2.2
Office applications
Office applications
4
refer to applications used to support office activities for word
processing, spreadsheet calculations, preparation of presentation slides, graphic arts
and database processing. There exist in the market several office applications such
as Microsoft office, Lotus Smart Suite, Star Office and Wordperfect Office. The
most known application suite is Microsoft Office, which includes Microsoft Word,
Excel, PowerPoint and Access. The applications work closely together allowing the
easy interaction and object exchange among each other.
2.1.2.3
Project management
Project management applications
5
allow project managers and team members to
keep track of any project from its conception to its launch. The software manages
all the project related aspects including resource management, budget management,
time management, task assignments, quality control, issue reports and documenta-
tion management. Project management software provides a centralized view to the
whole project and gives more transparency to all involved team members.
2.1.2.4
Team collaboration
Team collaboration software
6
offers proper conditions for the support and coordina-
tion of work related tasks within the company or among different companies. Using
team collaboration software, project teams can work together to solve common prob-
lems and achieve better and faster goals. The team members have the possibility to
work in parallel independant of the time and location. Team collaboration software
has gained ultimately more importance with the globalization, the internationaliza-
tion and the geographical distances between teams within the companies.
Team collaboration software combines different office and communication software
such as the tools already mentioned in 2.1.2.1 and 2.1.2.2 but also includes project
management functions, such as team tasks and time management, shared calendars,
real-time joint view of information as well as problem solving processes in teams.
2.1.2.5
Customer relationship management
Customer relationship management software
7
gives the company the tools required
to manage customer information. This information is important in order to deliver
the customers what they want, provide them the best customer service possible,
cross-sell and up-sell more effectively, close deals, understand who the customer is
4
See [43] Holey, Thomas, et al: Wirtschaftsinformatik, 2007, p. 272
5
See [41] Project management software: Project management software definition,
<http://www.projectmanagementsoftware.com>
6
See [56] Holey, Thomas, et al: Wirtschaftsinformatik, 2007, p. 281
7
See [45] Webopedia, IT Business Edge: Customer relationship management software,
<http://www.webopedia.com/TERM/C/CRM.html>
12
and retain current customers. The customer relationship management software will
collect, manage and link the customer information with the goal of optimizing the
customer's interaction.
2.1.2.6
Procurement
Procurement software
8
supports the purchase automatization functions in the com-
panies.
All the activities related to create and approve purchase orders, select and order
any product or service, receive and match an invoice and pay a bill are handled
electronically and can be analyzed separately. The procurement department benefits
of the information's centralization as it is possible to see what was ordered, ensure
the needed approvals are available and compare current prices to get the best deal
for the company.
2.1.2.7
Web development
Web development software
9
relates to software applications used to facilitate the
design, implementation and deployment of a company's internet website, applica-
tions and web services. This type of software consists of a programming-oriented
set of tools for linking web pages to databases and for manipulating other software
components. A HTML editor for web development is included generally.
2.1.2.8
Unified messaging
Unified messaging software
10
is used to improve the communication within the com-
pany, accelerate and improve the quality of decisions based on real-time information,
improve operational effectiveness and reduce travel and expenses cost. The main
components of a unified messaging software are instant messaging, fax, email, web
conferencing, real-time collaboration, presence and telephony integration.
2.1.2.9
Enterprise resource planning
Enterprise resource planning software
11
allows the companies to use a system of
integrated applications to manage the business by integrating all aspects of the
company's value chain including development, manufacturing, logistics, sales and
marketing. Specifically, the enterprise resource planning software consists of different
enterprise software modules, each one is focused on a specific area of the business
8
See [55] Holey, Thomas, et al: Wirtschaftsinformatik, 2007, p. 287
9
See [40] PC magazine encyclopedia: Web development software,
<http://www.pcmag.com/encyclopedia>
10
See [34] IBM corporation: Unified communications,
<http://www-142.ibm.com/software/products/us/en/category/SWAAA>
11
See [46] Webopedia, IT Business Edge: Enterprise Resource Planning software,
<http://www.webopedia.com/TERM/E/ERP.html>
13
process. The most common modules include those for product planning, material
purchasing, inventory control, sales, accounting, marketing, finance and HR. The
most important goal of the enterprise resource planning software is to provide one
central repository for all information that is shared by all business processes in order
to improve the flow of data across the company.
2.1.2.10
Fleet management
Fleet management software
12
is used for managing all the aspects and operations
related to a fleet of vehicles operated by a company. Among the main functions of
fleet management software are to manage all the processes, tasks and events such as
notification of routine maintenance, scheduled maintenance, warranty tracking, work
scheduling, depreciation, expense tracking, work order, parts inventory management
and operational cost tracking.
2.1.2.11
Human resource
Human resource software
13
is used to support the human resource activities of the
companies. The main functions of this software is to provide support in the recruit-
ment process, payroll, time repoint, benefit administration, learning and training
management, performance record, scheduling and absence management.
2.2
Fundamentals of cloud computing
2.2.1
Definition and characteristics
The term cloud computing refers to the possibility to execute any kind of process
using a server connected to the internet. It is possible to upload and download
documents, videos or pictures, which is commonly known as online storage. Cloud
computing facilitates as well the execution of computer programs without having
them installed at the own machines as the software is executed from supplier's servers
connected to internet.
There are many definitions available to describe the term cloud computing. One
simple definition
14
refers to cloud computing as the delivery of computing services
without owning an own infrastructure.
Other entities define cloud computing as follows:
12
See [51] Wikipedia: Fleet management software,
<http://en.wikipedia.org/wiki/Fleet_management_software>
13
See [53] Wikipedia: Human resource management system,
<http://en.wikipedia.org/wiki/Human_resource_management_system>
14
See [10] Metzger, Christian, et al: Cloud computing Chancen und Risiken aus technischer und
unternehmerischer Sicht, 2011, p. 2
14
· NIST
15
defines cloud computing as a model for enabling ubiquitous, convenient,
on-demand network access to a shared pool of configurable computing resources
(e.g. networks, servers, storage, applications, and services) that can be rapidly
provisioned and released with minimal management effort or service provider
interaction. This cloud model is composed of five essential characteristics (on-
demand self-service, broad network access, resource pooling, rapid elasticity,
measured service), three service models (cloud software as a service (SaaS),
cloud platform as a service (PaaS), cloud infrastructure as a service (IaaS))
and four deployment models (private cloud, community cloud, public cloud,
hybrid cloud).
· Gartner
16
considers cloud computing as a style of computing where massively
scalable IT-related capabilities are provided "as a service" across the internet
to multiple external customers.
· Forrester
17
sees cloud computing as a pool of abstracted, highly scalable, and
managed infrastructure capable of hosting end-customer applications and billed
by consumption.
· T-Systems, a german IT consulting company, defines cloud computing
18 19 20
as the renting of infrastructure and software, as well as bandwidths, under
defined service conditions. These components should be able to be adjusted
daily to the needs of the customer and offered with the upmost availability and
security. Included in cloud computing are end-to-end service level agreements
(SLAs) and use-dependent service invoices.
Other definitions and aspects of cloud computing can be found in the following
bibliographic references
21 22 23 24 25
:
In general terms, cloud computing refers to offer solutions and applications to the end
users without a need for installation and deployment in the own end user premises.
A cloud computing service can be software as a service, which delivers the entire
application. In the infrastructure as a service model
26
, only the servers and operating
systems are provided, and customers deploy their own applications on the hardware.
15
See [36] National Institute of Standards and Technology: NIST Definition of Cloud Comput-
ing, <http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf>, pp. 2-3
16
See [29] Gartner research: Gartner says cloud computing will be as influential as E-business,
<http://www.gartner.com/it/page.jsp?id=707508>
17
See [27] Forrester Research: Cloud computing definition,
<http://www.forrester.com/rb/research>
18
See [16] T-Systems Enterprise Services, White Paper. Cloud Computing I, 2011
19
See [17] T-Systems Enterprise Services, White Paper. Cloud Computing II, 2011
20
See [18] T-Systems Enterprise Services, White Paper. Dynamic Services, 2011
21
See [19] Van Zütphen, Thomas: Avancen aus der Wolke, 2011
22
See [15] Terplan, Kornel; Voigt, Christian: Cloud Computing, 2011
23
See [21] Velte, Anthony, et al: Cloud computing: A practical approach, 2010
24
See [1] Baun, Christian; Kunze, Marcel: Cloud computing: Web-basierte dynamische IT-
Services, 2010
25
See [20] Van Zütphen, Thomas: Der CIO als Cloud-Broker, 2011
26
See [39] PC magazine encyclopedia: Definition of cloud computing, 2012
15
Section 2.2.3 will explain in detail the existing cloud computing service models.
The cloud computing model is characterized by the benefits offered to the companies
in terms of productivity, cost and flexibility. Cloud computing is seen as a trend
with high potential to dominate the IT market due to the many advantages offered
compared to current IT technologies. Nowadays, companies are forced to increase
productivity, improve the cost structure and react faster to the changing market.
By using cloud computing, companies benefit of the flexibility, scalability, price
efficiency and mobility that can be reached with this service model.
Gartner research
27
estimates the cloud services revenue reached 68.3 US billion in
2010. Looking at the future, Gartner estimates the industry will strongly growth
and reach a revenue of about 148.8 million by 2014.
2.2.2
Computer topology evolution
Over the last years, the computer topology moved from a monolithic and central-
ized environment based on mainframes to a distributed environments based on the
client-server model. Recently, mesh environments are gaining importance. The
mesh connectivity allows each system to communicate directly to others increasing
the redundancy within the system. As a result, the data processing and storage may
be shared between them in a dynamic manner. Figure 2.1
28
shows the computer
topology evolution stages.
2.2.2.1
Mainframe
Mainframe computers
29
were introduced in the 1960s and consisted of centralized
servers, which were deployed at customer's premises. This technology consisted of
high available and performance computer systems that were very expensive and
complex. Mainframes used normally the star network topology. This topology
consists of computers connected directly to a mainframe.
Mainframes
30
were initially designed for big companies requiring the processing of
high amount of information and data. Mainframes were scalable systems and con-
nected to high-speed disk subsystems.
27
See [28] Gartner research: Gartner Says Worldwide Cloud Services Market to Surpass $68
Billion in 2010, <http://www.gartner.com/it/page.jsp?id=1389313>
28
See [14] Rhoton, John: Cloud Computing Explained, 2010, p. 31
29
See [52] Wikipedia: Grossrechner, <http://de.wikipedia.org/wiki/Grossrechner, 2012>
30
See [47] Webopedia, IT Business Edge: What is mainframe?,
<http://www.webopedia.com/TERM/M/mainframe.html>
16
Figure 2.1: Connectivity evolution
2.2.2.2
Client-Server
The client-server model
31
introduced the possibility for a service requesters (also
called client) to send tasks or workloads into a network for the further processing
by service receivers (also called server). The servers receiving the requests process
the information themselves or send it further to other computers connected to the
network.
The servers in the client-server architecture
32
have high capacity and high perfor-
mance for computing processing. This architecture provides a higher availability
than the mainframe model as the clients are not only connected to one single server
and in case of failover of one server, any other server connected to the network can
process the information. The client-server model started to be used in the 1980s as
applications were migrated from mainframes to networks of desktop computers.
2.2.2.3
Mesh topology
Finally, with the popularization of internet in the 1990s, the technology has seen an
increased trend into the mesh connectivity. The mesh connectivity
33
allows that each
31
See [48] Wikipedia: Client-server model,
<http://en.wikipedia.org/wiki/Client-server_model>
32
See [38] PC magazine encyclopedia: Definition of client/server,
<http://www.pcmag.com/encyclopedia>
33
See [14] Rhoton, John: Cloud Computing Explained, 2010, pp. 30-31
17
computer on the network can communicate to each other. Data processing, storage
or any other computer process required can be dynamically shared and executed
between systems. This model is highly scalable as the processes can be executed by
distributed servers. Cloud computing bases on the mesh connectivity model.
Figure 2.2
34
summarizes the computer topology evolution and presents the main
characteristics.
Figure 2.2: IT topology evolution
34
See: [24] Bias, Randy: Debunking the "No Such Thing as A Private Cloud" Myth,
<http://www.cloudscaling.com/blog/cloud-computing/debunking-the-no-such-thing-as-a-private-
cloud-myth/>
18
2.2.3
Cloud computing service models
With the introduction of cloud computing, companies perceive the deployment of
infrastructure and software applications in a different way. There is not longer a
need to invest high amount of money buying expensive and redundant systems or
purchasing a high number of software licenses.
Several services models are identified in cloud computing covering from infrastruc-
ture and database virtualization to user applications. As of today, three cloud
computing service models are identified in the literature as the most relevant:
· Infrastructure as a service
· Platform as a service
· Software as a service
The most know payment model is the pay-as-you-go-model (PAYG)
35
.
Figure 2.3
36
shows some applications for each cloud computing service model, which
will be described in more detail in the following sections 2.2.3.1, 2.2.3.2 and 2.2.3.3.
Figure 2.3: Cloud computing service models
35
See [36] National Institute of Standards and Technology: NIST Definition of Cloud Comput-
ing, <http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf>, 2011, pp. 2-3
36
See [14] Rhoton, J.: Cloud Computing Explained, 2010, p. 22
19