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Avinash Perera

Professor Alexandra Soya

COM 1101-15

25 April 2017

Effective Infrastructures for Growing Businesses

Business administrators depend on many components to maintain success of the

company. Many companies have different needs per their specific business operation; one

requirement remains the same regardless of the type of company. All businesses need to

communicate information internally between employees as well as externally between clients.

This is accomplished through communication infrastructure. Telephones, computers, software,

and e-mail are components of an infrastructure that are vital to most businesses.

A variety of different infrastructures are adopted by businesses to meet their business

needs. Two main types of infrastructures are on-premises infrastructures and cloud-based. Based

on the various advantages of cloud-computing systems and on-premises infrastructures, cloud

technology is more effective to help growing businesses that are just beginning because it allows

for quick access to hardware resources, scalability, and more innovation without information

technology setbacks.

On-premises infrastructures can take many forms as computer systems are variable, yet

all of them share several main characteristics. An on-premises system can be as simple as having

many computers on a central network, or as complex as having a company data-center with

hundreds of servers that hold all the software components of their business operation. The main

characteristics of this type of infrastructure are that the company has completely taken care of all
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the required hardware, software, and personnel requirements of their infrastructure. Capital

expenditures are made to acquire the computers and software needed, as well as to compensate

the technology professionals needed to work on the system.

Cloud-based infrastructures revolve around the concept of cloud computing. Cloud

computing can be defined many ways, yet all these definitions have common characteristics

including: pay-per-use, elastic amounts of resources, universal access, and abstraction of

resources. Cloud computing has changed meaning over the years, its first appearance as a term

was in the late 90s. Over time, many different models of cloud systems have evolved and made

their debut coming from the advancement of computing technologies. One of these

advancements that paved the way for cloud computing was the evolution of the internet and

networking technologies. Researchers and technical evangelists experimented by combining

different technologies to facilitate information circulation more efficiently based on the situation.

Out of this experimentation came cloud infrastructure services. These services allow clients

(usually businesses) to virtualize their technology resources for many advantageous reasons.

Due to the growing popularity of these cloud services bringing about connotations of the

future, there is a growing trend of companies implementing these technologies. Beaty asserts that

cloud computing is an industry of rapid change, transforming based on the evolution of the needs

of businesses. (Beaty, 1) A common problem is the business administrator choosing this type of

infrastructure because of how it sounds, not necessarily analyzing how the technology helps

them achieve business goals.

On-premises infrastructures have advantages where cloud computing falls short. On-

premises infrastructures are significantly more secure than cloud infrastructures because of the

fine-grained control the company has on all information circulating around the system.
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Fernandes, et al. examines the literature on security issues of cloud systems. (Fernandes, et al., 1)

They assert that, per current research, there are a variety of security problems with cloud

computing from advancing malware to web access security holes. Most of these security issues

deal with the dynamic networking and communication that cloud technology introduces, and on-

premises solutions minimize. On-premises solutions limit the access points in the system where

things can go wrong in communication, leaving vulnerabilities for hackers. In her study, Lin

finds that technology professionals in Taiwan are not going to widely adopt cloud technology for

their businesses until these security concerns are addressed. (Lin, 1)

On-premises infrastructures have disadvantages that can be large obstacles for growing

businesses. Implementing this type of system takes a significant amount of expense or capital.

This infrastructure also means expenditures that are proportional to how the business grows. If a

business has a bad year, and must make some cut backs on employees, then it is left with

hardware that is being unused. While it is secure for access in this structure to be limited, it also

makes it much harder to allow access from any internet connection.

Cloud computing has its disadvantages, mainly security. According to Nwobodo,

businesses and their customers have concerns about how secure their data is in the cloud. Due to

the nature cloud systems, transmission of so much data over a network opens up many access

points in the infrastructure for hackers. However, the manufacturers of this technology constantly

improve the security of this system, updating and increasing authentication measures. There are

also steps that companies can take during set up to make the infrastructure more secure.

Cloud computing has many advantages that can help businesses grow. For

implementation, there is a much lower threshold of expenditure required to begin operating with

a professional infrastructure. This means very quick access to hardware resources. These systems
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are also very scalable. If a business doubles in size within a year, it is just a matter of adding

users than investing in more hardware and setup. Also, Avram stakes the claim that another

advantage of cloud infrastructure is that it allows for high-grained business analytics that are

accessible by small and large businesses. (Avram, 2) Since cloud computing allows small

businesses to operate with complex and high quality infrastructures, it allows them to focus on

their products more. Due to the exponential increase of technology companies, this focus means

more innovative technologies in a faster amount of time for consumers.

On-premises infrastructures and cloud based infrastructures both have their respective

advantages. On-premises infrastructure allow for more control over each aspect of the system.

This can mean more possibilities for customizability however it more so means increased

security. Cloud computing has more business-critical advantages while its disadvantages can be

counteracted, actively. Author Kranz et al. even claims that due to the growing adoption by

businesses of cloud based technology, a profound effect is being seen on the on-premises

enterprise software industry. (Kranz et al., 1) Cloud computing reduces initial capital expenses. It

also allows businesses to have more access to professional and complex resources to further their

bottom line. This cloud technology is also scalable so as the size of business changes, the

technology can easily change size as well. These advantages allow for businesses to reduce

technology costs and plan for growth without having to account for large hardware costs. This is

the reason cloud infrastructure is more useful and effective for growing businesses.

This examination between types of infrastructures is important to the technology industry

as well as the business industry. Pointing out the flaws of each system allows for manufacturers

of the systems to improve the infrastructure or develop new systems altogether. This advances

technology allowing for greater technological innovations to be made and more problems to be
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solved. The business industry gains insight into how to approach choosing an infrastructure that

is right for the company. The would result in a higher chance of success for the business because

the computer system would be more adapted to the needs of the business.
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Works Cited

Avram, M. G. "Advantages and Challenges of Adopting Cloud Computing from an Enterprise

Perspective." Procedia technology 12 (2014): 529. Print.

Beaty, Donald L. "Cloud Computing 101." Ashrae Journal 55.10 (2013): 88-93. Print.

Fernandes, Diego A. B., et al. "Security Issues in Cloud Environments: A Survey." International

Journal of Information Security 13.2 (2014): 113-70. Print.

Kranz, Johann J., Andre Hanelt, Lutz M. Kolbe. "Understanding the Influence of Absorptive

Capacity and Ambidexterity on the Process of Business Model Change - the Case of on-

Premise and Cloud-Computing Software." Information Systems Journal 26.5 (2016): 477-

517. Print.

Lin, Angela. "Cloud Computing as an Innovation: Perception, Attitude, and Adoption."

International journal of information management 32.6 (1 Dec. 2012): 533. Print.

Nwobodo, Ikechukwu. "Cloud Computing: Models, Services, Utility, Advantages, Security

Issues, and Prototype." Wireless Communications, Networking and Applications

Proceedings of WCNA 2014.Springer India, 1 Jan. 2016. 1207. Print.