Sample Technology Paper on adoption of cloud computing technology

Executive Summary

The feature highlights the themes connected with the adoption of cloud computing technology to solve old applications found at the Timely Technologies institution. The primary objective is to point out the problems facing the company in connection with the management of information systems and describes how the organization tackles the menace.

Timely Technology is a firm that experiences a lapse due to a significant recession in 2008. The industry has previously shown impetus growth in financial gains. However, there is a change in the preceding years, that is, the period 2006 to 2012, where the company had a single positive net worth within a session of twenty quarters.

The company boasts of $750 million in terms of revenue before the time of inflation.  However, the downturn negatively affected the organization leading to a generation of revenue worth $250 million annually (Drum, Becker & Fish, 2013). Equally, there is a reduction of profit margin from $20 million, resulting in a loss of $49 million within the same recess time.

The firm has decided to lay off 3000 employees in information technology, manufacturing, and administration sectors to counteract the effects of economic depression. The prolonged quarter losses have made the organization to compare the details of accounting as well as available institution data with the finance for gathering it. The company aims at implementing effective money saving strategies.

The slump led to a decline in the sale of the company’s primary product (laptop), and there were no significant indicators of rebounding. There is anxiety within the institution as the management figure out what sound decision to take since the information at their disposal of the ERP software is not sufficient. The case practically gives an insight into the adoption of a cloud computing system.

Background 

The Timely Technology (TT) organization has several application drawbacks. TT company lost $60 million because of the closure of the production unit in 2009, an extra $20 million in the renovation of an Asian plant in 2012.

The low purchase of laptops and its components was a significant blow to the company since it was its primary commodity. Besides, ERP software (Mac-Pac) is out of date since the vendor does not support it and does not integrate smoothly with the accounting and human resource applications. Technology Organization Environment (TOE) prototype is essential for formulating decision of adopting a cloud computing system because it has an environmental feature that describes the opportunities and limitations of implementing a new system.

Drafting an IT plan of action is not easy when a firm is experiencing financial issues. Limited resources result from trade-offs. Adoption of cloud computing technology is vital because acquiring timely information from the existing ERP system is complex. The cloud software seamlessly integrates into the IT unit because of its high compatibility nature providing better services and effective company communication across all managerial levels.

The firm depends on the client to make an order other than signing a contract. The organization has a significant challenge in managing the rising demand for orders of customers.

The institution faces the risk of planning for the essentials of capacity to effectively use production space since it is not in contractual terms with the buyers.

Moreover, failing to implement technologies and production capacity to attain the market demand will negatively affect the TT venture leading to losses.  It is difficult to impose contract sales agreements with clients to cater for the pricing of commodities since it will make clients shift to the side of competitors who do not uphold such regulations.

Timely Technologies’ current situation is worse as it has a debt bearing a colossal rate of interest, which is over 8%. Besides, this interest is beyond the rate on secured loans during the time of crisis.

Problem Statement 

Limited capacity to consummate demands for new and real-time information, streamline data processing, and expand clients’ service-oriented pleas has been a problem for Timely Technology firm. The old ERP system does not seamlessly integrate with human resource and accounting software.

The company management is formulating decisions to make use of a cloud computing application to help in the integration of existing ERP software and ledger with software as a service component (SaaS). SaaS is a prototype of cloud technology (Maheshwari, Toshniwal & Dubey, 2020). SaaS units will enhance venture resource planning, accounting, clients, and vendor management.

Timely Technology organization, therefore, will not spend extra money to acquire an application that will be obsolete or difficult for integration with previous IT infrastructure, thus saving on cost.

Analysis 

The selection of an information technology model is a crucial decision to be made by Timely Technology firm. TT needs to establish the security of its data and system, which facilitates easy access to the retrieval of information and reduces the cost of operation.

There is a need to explore different prototypes while TT decides to migrate from traditional IT platforms to cloud computing infrastructure.

The traditional platform has a remote server within the company premises connecting to computers that employees can use to retrieve venture information. The organizations operating under this model requires upgrading of extra hardware to have additional system users and scale-up storage of institution information in case of a hardware failure. Moreover, customization of traditional IT architecture enables a firm to run different kinds of applications concurrently.

The Cloud technology platform is a virtual model. It supports various servers and networks on clouds and provides real-time information. There is a need to reduce the cost of acquiring in-house servers since the industry can rent space for storing data as the cloud system upholds a cost reduction means of pay-per-use.

The comparison between salient features of cloud computing platforms and traditional infrastructure

In cloud computing, there is channeling of data and software to every server within a network. Information is not lost in case of system failure since there is an avoidance of downtime. Cloud platforms provide adequate space for resources, increasing the efficiency of applications.

Traditional architecture, on the other hand, does not have sufficient storage capacity and is vulnerable to downtime reducing the production level of a company.

Cloud IT infrastructure is more flexible and scalable. Cloud technology has unique attributes like the flexibility that puts it at the forefront of IT infrastructure (Karim & Rampersad, 2017). The high demand for virtual storage areas is vital for the firm to scale up or down based on web traffic by installing various software.

Traditional platforms do not have adequate space, creating an extra cost of purchasing an additional server, hiring more staff results to incur an extra charge in purchasing application licenses, and uploading the software within institution premises.

Cloud computing companies provide the firmware and security of servers. However, traditional information infrastructure is costly since the deployment of in-house administration is vital. Similarly, trained personnel are essential for the configuration and troubleshooting of servers.

Cloud IT infrastructure is less secure in information storage compared to a local server. Individuals who are not restricted to access the server can freely use the applications and data in the cloud.

In traditional infrastructure, the company oversees the right to access the server by approving people who can access the stored information and software. The company IT department is responsible for safeguarding the server. The company needs to adopt this model should have a budget of investing in security strategies and acquire superior information recovery applications.

Recommendations and Conclusions

Timely Technology suffers from an economic crisis resulting from the slump.  The old ERP software does not offer accurate information and does not smoothly integrate with HR and accounting systems. Susan, the CFO, and managers have a concern about security issues of adopting cloud computing technology. TT is using solutions to cloud computing for inventory processes.

I would vouch for adopting the cloud system since it allows smooth integration of the current ERP software and additional applications. The cloud platform will enhance real-time data sharing with larger storage space. A reduction in downtime enhances the production of a work station and maximizes profit.

The company must select a cloud service firm that embraces transparency and, at the same time, offer optimum security during migration to cloud platforms. A hybrid information technology model is the future infrastructure that will enhance flexibility as well as scalability.

 

References

Drum, D., Becker, D., & Fish, M. (2013). Technology Adoption in Troubled Times. Journal of Cases on Information Technology, 15(2), 57-71. doi:10.4018/jcit.2013040104

Karim, F., & Rampersad, G. (2017). Cloud Computing in Education in Developing Countries. Computer and Information Science10(2), 87-96. https://doi.org/10.5539/cis.v10n2p87

Maheshwari, R., Toshniwal, A., & Dubey, A. (2020, January). Software as A Service Architecture and its Security Issues: A Review. In 2020 Fourth International Conference on Inventive Systems and Control (ICISC) (pp. 766-770). IEEE. https:// doi.org/10.1109/ICISC47916.2020.9171145