Lecture 8- Cloud computing in accounting

Cloud computing- The provision of [blank_start]information technology[blank_end] resources as a [blank_start]service[blank_end] through the [blank_start]internet[blank_end] or similar [blank_start]network[blank_end]

One feature of cloud computing is [blank_start]on-demand self-service[blank_end]. This involves users of cloud computing services [blank_start]requesting[blank_end] computing [blank_start]capabilities[blank_end] as needed, typically [blank_start]automatically[blank_end]

Another feature of cloud computing is [blank_start]broad network access[blank_end]. This involves [blank_start]services[blank_end] being available over a [blank_start]network[blank_end] & accessed through [blank_start]standard equipment[blank_end]

Third feature of cloud computing is [blank_start]resource pooling[blank_end]. This involves computing resources being [blank_start]pooled[blank_end] to [blank_start]serve multiple customers[blank_end] with different [blank_start]demand[blank_end] needs. There is also location independence

Fourth feature of cloud computing is [blank_start]rapid elasticity[blank_end]. This involves services being [blank_start]rapidly provisioned[blank_end] & [blank_start]released[blank_end] according to [blank_start]demand[blank_end]

Fifth feature of cloud computing is [blank_start]measured service[blank_end]. This involves cloud systems [blank_start]automatically controlling[blank_end] & [blank_start]optimising[blank_end] resource use by leveraging a metering capability at some level appropriate to the type of [blank_start]service[blank_end]

One common cloud computing model is [blank_start]software-as-a-service[blank_end]. This refers to a [blank_start]cloud-based service[blank_end] where a [blank_start]customer[blank_end] uses software [blank_start]applications offered[blank_end] by the cloud service [blank_start]provider[blank_end]

Another common cloud computing model is [blank_start]platform-as-a-service[blank_end]. This refers to a [blank_start]cloud-based services[blank_end] offering [blank_start]infrastructure[blank_end] to the [blank_start]customer[blank_end] where the customer [blank_start]does not manage[blank_end] the underlying infrastructure or operating system

Third common cloud computing model is [blank_start]infrastructure-as-a-service[blank_end]. This refers to a cloud-based services where the [blank_start]provider[blank_end] offers [blank_start]processing power[blank_end], [blank_start]storage[blank_end], [blank_start]networks[blank_end] & [blank_start]similar infrastructure[blank_end]

Public cloud- Cloud infrastructure [blank_start]available[blank_end] for use by [blank_start]any member[blank_end] of the [blank_start]public[blank_end]

Private cloud- Cloud infrastructure which is [blank_start]exclusively[blank_end] used by a [blank_start]single organisation[blank_end]

One advantage of cloud computing is [blank_start]lower barriers[blank_end] to [blank_start]technology innovation[blank_end]. As costs are [blank_start]lower[blank_end] & availability is [blank_start]instant[blank_end], start-up businesses can provide products & services much [blank_start]faster[blank_end]

Another advantage of cloud computing is [blank_start]immediate access[blank_end], [blank_start]no upfront cost[blank_end]. There are no upfront [blank_start]capital costs[blank_end] for [blank_start]hardware[blank_end] or other [blank_start]infrastructure[blank_end]

Drawback of cloud computing is [blank_start]security & privacy[blank_end]. [blank_start]Security[blank_end] of data is lower over public internet infrastructure than over private business networks. Also, there is [blank_start]lack[blank_end] of [blank_start]standardised[blank_end] data protection regulation from country to country

Another drawback of cloud computing is [blank_start]vendor management[blank_end]. Cloud computing is relatively new so [blank_start]consumers[blank_end] of cloud services need to [blank_start]develop skills[blank_end] to manage their cloud resources, including [blank_start]vendors[blank_end]

One advantage of cloud computing for small businesses is [blank_start]access[blank_end]. Only an [blank_start]internet connection[blank_end] is required to [blank_start]access[blank_end] cloud accounting [blank_start]software[blank_end]

Another advantage of cloud computing for small businesses is [blank_start]collaboration with experts[blank_end]. External accountants can [blank_start]access[blank_end] the [blank_start]records[blank_end] of a business through [blank_start]cloud accounting software[blank_end], and therefore accountants can [blank_start]collaborate[blank_end] with small business in a more [blank_start]effective[blank_end] way