You read about cloud computing in Chapter 3 of the course text, which discussed cloud computing as it applies to all types of applications. What are the specific advantages and disadvantages of cloud computing for enterprise resource planning (ERP)? Dr. Patterson, our guest speaker, spoke about the benefit of using global standards in INF220 Week Four Network Technology Development Approaches (Links to an external site.). Would using global standards be good when integrating cloud computing in the organization? Why or why not?
For discussion two, this video compares Cloud ERP to an On-premise ERP solutions. Cloud ERP is provided as a service through a company or referred to as Software as a Service (SAS). Through On-premise ERP, solutions are installed on local servers while managed by technical staff. SAS is managed by a vendor and information is accessible to customers using a web-browser.
There are several advantages of cloud computing through Cloud ERP when compared to On-premise ERP. Ownership costs should be considered. According to the video material, an On-premise ERP is a huge investment that requires on-going maintenance. However, cloud is much lower and offers cost-savings at approximately 50% less. On-Premise involves redeploying system changes while cloud requires upgrades only every few years. Some other advantages of cloud are system flexibility, which allows allocation of more resources to system functions, better performance and security and a pay-as-you-go system.
I believe using global standards would be good when integrating cloud computing. As Dr. Jeriod Patterson of Alcatel-Lucent explains in his video, Network Technologies Development Approaches, applying global standards to meet SLAs is part of understanding a customer’s requirements through technology. Alcatel-Lucent manages service contracts in approximately 80 networks while covering over 200 million subscribers. I think integration makes this form of computing easier. Many devices can be managed and supported remotely.
Our text explains that cloud computing is defined by the National Institute of Standards and Technology (NIST) 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 (http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf (Links to an external site.))” (Valacich & Schneider, 2016). They also explain that Enterprise Resource Planning (ERP) “applications make accessing information easier by providing a central information repository, giving personnel access to accurate, up-to-date information throughout the organization” (Valacich & Schneider, 2016). This would mean that the advantages are the access to the information being easy and fast, the information being accessed would be as accurate as possible because as it is being accessed as quick as the updates happen. Some of the disadvantages would be that some of the information might not be for everyone that is able to access it and there could be some leaks that could be potential hazards. The lack of security could be an issue when the data is being accessed. Another thing is that just because the system is fast some data could be wrong and it might cause an issue if data is not recorded properly when uploaded.
When it comes to the global standards, the guest speaker explains that some organizations that do not understand the technology, goals, or the cost would benefit from this by utilizing them to retain their customer base, transition easier and get a better understanding through these services (Ivy, 2015). I think that using the global standards would be beneficial when cloud computing as it would allow for more growth and the ability to get a better handle on things when it comes to the cost and transitioning with growth. It would allow the organization to understand how things are progressing and guide them in a way.