Cloud Computing and Amazon Web Services

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Cost reduction

AWS offers a lot of economic benefits to Ericsson Company by reducing its expenses. Ericsson derives operational advantages including quicker setting up of infrastructure and convenient cost effective finishing of huge computational projects (Malaher, 2009). Amazon provides a free tier which allows Amazon EC2 to get started at no charge.

AWS does not include long-term commitments and up-front costs making its initialization to be easy and cost effective. Amazon cloud computing services allow Ericsson to save a lot of money by providing inexpensive plans for compute capacity consumed.

Amazon allows Ericsson Company to cut the costs by cutting the Information Technology (IT) staff. By obtaining expertise outside the company, Ericsson can lay off its IT staff since its services are maintained by experts from Amazon (Mitchell & Wilson, 2008).

Automated software updates

Flexibility is derived from support of several operating systems, multiple instances and software. To update the software, only an internet connection is needed, and therefore a business can expand by serving more clients at a time. With this service, less malfunctioning is experienced; applications used in this platform are upgraded less frequently and are managed by Amazon.

Remote access

Amazon EC2 comes with a unique mobilization which allows access of services from anywhere in the world. Employees are able to conduct business over mobile devices and track their leads quickly (DCLUG, 2006).

Amazon EC2 comes with a unique mobilization which allows access of services from anywhere in the world. A whole new level of opportunities is created by giving employees new professional devices, which motivates them and makes their jobs more convenient.

On-demand availability

Amazon Web Services give client companies on-demand access to various cloud infrastructure services. AWS charges are calculated using the resources actually consumed by the end user. AWS allows Ericsson Company to get rid of expensive hardware and the management hassles that come with owning and using them (Malaher, 2009).

Amazon Elastic Compute Cloud provides quicker and more responsive services compared to internal IT systems; a client can choose between 500 Mbps and 1000 Mbps depending on the instance applied (Malaher, 2009).

Scalability

Amazon EC2, Amazon S3 and RightScale are designed with capability to adapt with the size and amount of data and the number of users. The systems are designed with capability of altering requests and size of instances; in essence, they are flexible.

Dependability

Amazon EC2, Amazon S3 and RightScale support the contemporary applications used in clouds. They have proved their ability to ensure the systems operate without disruptions. Systems are designed to avoid data loss and unnecessary code resets during execution. Amazon has applied redundant resource utilization; reliability solutions are mostly software based.

Manageability

Amazon EC2, Amazon S3 and RightScale have been designed with redundancy of data to enable the systems to m ask failures and ability for fault tolerance. Manageability and load balancing are made possible through data and service replication and allocation to different resources.

Cloud technology is still immature; vendors are still doing more research and development to give its business clients more service and quality. A potential security concern is that a client company has no entire control of its business information and data files which are vital assets.

The issues of privacy and security are not guaranteed and site audit inspections are difficult to perform. There is also a remote possibility of loss of data since data is backed up in a virtual environment. To cope with these concerns, vendors should assure their clients by allowing them to access their data files.

Scalability issues

The client does not have the freedom to make any customizations that are not accepted or supported by Amazon as the vendor. A deep knowledge of how a cloud system operates including virtualization and deployment of hardware and software is required, and might be complicated to a client company. Vendor companies should be able to cover all technical needs of their clients, as an after sale service (Malaher, 2009).

Reliability issues

The disadvantage of dependency is also experienced by the client since the company does not have any influence on the levels of maintenance of the system. The client has very little insight on the contingency procedures of vendors. Vendors should come up with a more versatile platform that will give client companies more powers over the cloud; this will get rid of reliability issues (Malaher, 2009).

Cost issues

There are possibilities of IT improvements determined by the vendor at a later stage. These services are coupled with hidden costs that are not directly mentioned by vendors. These costs include the data backup and data restore costs, compliancy costs, disaster recovery and problem solving costs (Turban & Volonino, 2011).

When launching or adopting the services, the expense may seem low but the cost structure is opaque. Vendor companies should attempt to balance the issues of costs by including all the costs at the initial stages of the contract.

References

Amazon.com, I. ( 2011, May). Amazon Web Services: Overview of Security Processes. Retrieved from Amazon Web Services: awsmedia.s3.amazonaws.com/pdf/AWS_Security_Whitepaper.pdf

DCLUG. (2006, October 15). Amazon Web Services. Retrieved from Washington D.C. Linux User Group (DCLUG) : dclug.tux.org/200611/AmazonEC2.pdf

Malaher, T. (2009, March). Cloud Computing and Amazon Web Services. Retrieved from malaher.org: malaher.org/__…/cloud_computing_and_amazon_web_services.pdf

Mitchell, S., & Wilson, M. (2008, October 8). Using Amazon Web Service. Retrieved from Kansas City Java Users Group: www.kcjava.org/media/Using_Amazon_Web_Services.pdf

Turban, E., & Volonino, L. (2011). Information technology for management (8th ed.). Hoboken, NJ: John Wiley & Sons.

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