The Impact of Cloud Computing in Regard to Cost and Security.

Abstract

The use of computers and related technologies has become imperative in the daily operations of most organisations in Tanzania, Vodacom Tanzania Public Limited Company specifically. Cloud computing provides many attractive services to users of the services such as usage-based pricing, ubiquitous network access, transferring of risk to the service provider and provision of on demand self-service. However, it is not known whether these attractive services have resulted to positive gains in the operations of the organisations using these cloud services. The study aimed at assessing the impact of cloud computing on organisations in regard to cost and security within Vodacom Company. The objective of the study was achieved, where this study identified the cost risks and security benefits which organisations experience while utilizing cloud computing. The major cost risk which has been identified is the lack of accurate and sophisticated cost models on the current cloud market. The security benefits identified include increased data safety, security centralization, lower financial commitments for Risk Management, security maintenance and support, improved security software mechanisms and maintenance, and faster data recovery and transfer. This research has shown several major implications. Organisations should consider minimising their staff as a means of reducing operational costs, small and medium sized organisation should migrate to cloud computing for cost minimization and should consider hybrid cloud as the most appropriate cloud deployment model for them, representing a perfect balance between the sensitive data issue and cost savings. In order to avoid cost risks, organisations require developing new and more accurate cost models for precise calculation of the costs for cloud services, as well as an increased competition on the cloud market which should be stimulated. As for avoiding security risks organisations need to take serious analysis regarding which data should be stored in the cloud, developing advanced data protection mechanisms, and improving transparency regarding security measures taken by cloud providers. Also, there is a necessity of establishing international regulatory frameworks, interoperable and security standards on a supranational level as an essential prerequisite for secure cloud computing environment.