Basic Cloud Computing Explained
What is Cloud Computing
According to Carl Hewitt, in a paper published in 2008 by IEEE, cloud computing is defined as “a paradigm in which information is permanently stored in servers on the internet and cached temporarily on clients that includes desktops, entertainment centres, table computers, notebooks, wall computers, handhelds, sensors, monitors, etc.” According to Chee and Franklin (2010), cloud computing is “an information-processing model in which centrally administered computing capabilities are delivered as services, on an as-needed basis, across the network to a variety of user-facing devices.
So cloud computing is a construct that allows various parties to connect with each other through the internet. With this, they can share software with each other without having to buy them or install them in your computer. For example, an office might need a lot of Microsoft Word software to be installed in its computers. Rather than doing that, which would incur a lot of cost for the product and licensing, it would be better to use cloud computing. Besides, not everyone might use the application as much as anyone else.
The company could have another company host the application, which means the latter will handle the cost of the servers, updating the software and so on, which would mean lesser cost for the company.
All in all, cloud computing is a style of computing whose foundation is the delivery of services, software and processing capacity using private or public networks. The focus of cloud computing is the user experience, and the kernel is to decouple the delivery of computing services from the underlying technology. The technology behind the cloud remains unseen to the user, only the convenient user interface, making cloud computing incredibly user-friendly. Cloud computing is an ever rising approach to shared infrastructure where large pools of systems are linked together in private or public networks to provide IT solutions.
What are the advantages and disadvantages of using cloud computing in logistics?
Advantages
Scalability
This refers to the ability of a system or network, to handle a growing amount of work in a capable manner or its ability to be enlarged to accommodate that growth. For example, take a company who is suddenly being met with an upsurge of demand. Rather than purchasing or installing new software and equipment, it would be best to buy addition CPU storage or cycles from another third party. The cost would be reduced, as you are now paying only for consumption rather than for purchase.
Once the demand has reduced, one needs to only adjust the dealings that one has with the third party contractor.
Simplicity and reducing cost
Tasks are reduced and made simple, now that staff would not need to run around installing new equipments or software, they could instead be made to start work immediately by using software available from the cloud computing concept.
As stated, the cost for using cloud computing is cheaper than having to buy the software and the overall cost of maintaining it.
Improved Performance
With cloud computing, the software used need not be installed in the computer, thus it prevents the need for computers to be bogged with too many programs. According to Miller (2008), this concept of lower-cost cloud computing mirrors the earlier attempt of Larry Ellison of New Internet Computer Company, back in 2000. The idea was to sell computers without a hard drive or a CD drive that would then be connected via internet to a supercomputer that hosts all the needed applications. Changing the single supercomputer by Ellison with multiple computers acting as supercomputers brings about cloud computing.
Ellison’s project was a miserable failure, however, after the company was closed down three years later.
The computing company, IBM’s Watson and Zurich Research Centres, embraced cloud computing to schedule and complete far more projects than they otherwise could manage. Rather than the normal two weeks required to request, schedule and provision a particular software stack for a research project, cloud computing allowed them to reserve IBM resources in numerous remote locations in a fraction of the time. This has driven resource allocation and improved productivity.
Easy access to information
Once a computer has been registered with a cloud, the user can now access it from different places and using different devices. Even in an office compound, employees using different computers are all able to access the cloud.
A huge benefit to businesses is the ability for multiple employees to access, edit and share folders and files that they are currently working on. This would mean that collaboration between teams of people can be greatly improved, and no time is wasted on uploading and emailing files individually.
Convenience to start up a new business
For a new company who wants to get down to business quicker, it is more convenient to set up be plugged in to a cloud than to get a new server, run them and to install software.
Disadvantages
Security threats
In cloud computing, you are basically putting your saved folders and documents on the internet. This can pose as a security risk as the sheer volume and type of data that cloud solution providers store from multiple clients make them attractive targets for hackers trying to steal your private and vital information. Engaging a cloud service provider means outsourcing the security of data to that service provider, so businesses should look for certification from reliable auditors and this should be made a priority.
Another issue is the sense of losing control over your documents. Through cloud, somebody else is hosting the hardware, software and data which could raise security concerns.
Dependency on the internet connection
Say one day your company has some problem connecting to the internet this will in turn cost the company the operations needed to be run for the day. Companies should ensure that their technical team and backup systems are always prepared and adequate.
Storage limit
While your local hard drive may be able to hold 500GB or more of data, the fact is a remote server might only allow you to store about 5GB. If you want more room then you’ll have to pay. However, even with a paid account, it can’t begin to touch the amount of room you have locally. There also may be a limit on the size of the data that can be stored.
Slow speed
Uploading and downloading documents might be rather slow, especially if there is something wrong with the connection. Of course any profitable company wouldn’t want this to affect their operations.
Unpredictable cost
When you are paying each month depending on your usage, then would mean that the cost is unpredictable and will be different each month.
Quality of service provider
This may or may not apply to a company it depends then on the service of the host company that it is subscribing to, which is lack of support. If there is a problem in using cloud, the subscriber would have to refer to the host company and late replies and responses could be costly.
The New York Times puts it this way: "The bottom line: If you need handholding or if you are not comfortable trying to find advice on user forums, the cloud probably is not ideal".
Reluctance from IT staff
Staff might not agree with moving to cloud computing as they will feel threatened to be pushed to the sidelines of doing mundane jobs, or more likely, losing their job altogether.
Applications of cloud computing in various warehouse operations
In terms of warehouse operations, we can see cloud computing giving benefits to many aspects. Warehouse operations need to store their data, so operations regarding the use of barcode technology would be better managed and controlled. In achieving better inventory management, with many different items to record, cloud computing is a good tool to be integrated.
These programs include initiatives designed to improve storage, file-sharing and communication, all of which have a big impact on inventory management. By placing warehouse management systems (WMS) in the cloud, companies give greater visibility to their supply chains.
The increased transparency renders it easier to identify trouble spots, reroute packages to areas that are facing shortages and it could also improve forecasting. Centralizing the data from the entire supply chain gives businesses greater control over their inventory. The additional productivity provides a notable advantage over traditional inventory management systems by allowing firms to make faster, more accurate adjustments based on real-time market conditions.
The benefits of having flexibility, savings and scalability are driving the adoption of cloud-based platforms and providing firms with the tools to greatly improve their supply chains.
A WMS business will often show tremendous benefit in terms of improved order fill rates, inventory accuracy and ability to provide customers with value-added services. This will help justify for the significant upfront costs in terms of software licenses, infrastructure build out (hardware, networking), and project implementation costs. While these business cases often show positive return on investment, reaching a breakeven point may take several years.
A cloud deployment option can significantly alter this business case, resulting in an earlier payback. This is true for several reasons. Firstly, cloud computing deployments happen faster. There is no infrastructure that needs to be purchased and installed. The user’s IT team does not need to be trained on system administration, system back-up/recovery or upgrades. These activities are all managed by the software provider. Removing these tasks can shorten WMS implementations by one-third, according to industry estimates.
A common challenge for many line-of-business technology buyers is the dependence on the IT organization. Operations may have a strong return on investment associated with the implementation of a WMS but they aren’t able to prioritize the WMS project high enough to get the scarce resources in the IT department.
Cloud-deployed WMS significantly reduces the burden on a company’s IT organization. As was mentioned above, tasks that typically would be the responsibility of the IT organization like server set-up, back-up and recovery are left to the technology provider. This approach allows the line-of-business user to re-prioritize their WMS project and remove the dependence on already constrained IT resources.
Cloud WMS works in the same way as the installed software; it avails reliable practices for:
Flow through.
Receiving.
Order processing.
Inventory management.
Pick ad pack processes.
Replenishment.
Loading.
Shipping.
According to Carl Hewitt, in a paper published in 2008 by IEEE, cloud computing is defined as “a paradigm in which information is permanently stored in servers on the internet and cached temporarily on clients that includes desktops, entertainment centres, table computers, notebooks, wall computers, handhelds, sensors, monitors, etc.” According to Chee and Franklin (2010), cloud computing is “an information-processing model in which centrally administered computing capabilities are delivered as services, on an as-needed basis, across the network to a variety of user-facing devices.
So cloud computing is a construct that allows various parties to connect with each other through the internet. With this, they can share software with each other without having to buy them or install them in your computer. For example, an office might need a lot of Microsoft Word software to be installed in its computers. Rather than doing that, which would incur a lot of cost for the product and licensing, it would be better to use cloud computing. Besides, not everyone might use the application as much as anyone else.
The company could have another company host the application, which means the latter will handle the cost of the servers, updating the software and so on, which would mean lesser cost for the company.
All in all, cloud computing is a style of computing whose foundation is the delivery of services, software and processing capacity using private or public networks. The focus of cloud computing is the user experience, and the kernel is to decouple the delivery of computing services from the underlying technology. The technology behind the cloud remains unseen to the user, only the convenient user interface, making cloud computing incredibly user-friendly. Cloud computing is an ever rising approach to shared infrastructure where large pools of systems are linked together in private or public networks to provide IT solutions.
What are the advantages and disadvantages of using cloud computing in logistics?
Advantages
Scalability
This refers to the ability of a system or network, to handle a growing amount of work in a capable manner or its ability to be enlarged to accommodate that growth. For example, take a company who is suddenly being met with an upsurge of demand. Rather than purchasing or installing new software and equipment, it would be best to buy addition CPU storage or cycles from another third party. The cost would be reduced, as you are now paying only for consumption rather than for purchase.
Once the demand has reduced, one needs to only adjust the dealings that one has with the third party contractor.
Simplicity and reducing cost
Tasks are reduced and made simple, now that staff would not need to run around installing new equipments or software, they could instead be made to start work immediately by using software available from the cloud computing concept.
As stated, the cost for using cloud computing is cheaper than having to buy the software and the overall cost of maintaining it.
Improved Performance
With cloud computing, the software used need not be installed in the computer, thus it prevents the need for computers to be bogged with too many programs. According to Miller (2008), this concept of lower-cost cloud computing mirrors the earlier attempt of Larry Ellison of New Internet Computer Company, back in 2000. The idea was to sell computers without a hard drive or a CD drive that would then be connected via internet to a supercomputer that hosts all the needed applications. Changing the single supercomputer by Ellison with multiple computers acting as supercomputers brings about cloud computing.
Ellison’s project was a miserable failure, however, after the company was closed down three years later.
The computing company, IBM’s Watson and Zurich Research Centres, embraced cloud computing to schedule and complete far more projects than they otherwise could manage. Rather than the normal two weeks required to request, schedule and provision a particular software stack for a research project, cloud computing allowed them to reserve IBM resources in numerous remote locations in a fraction of the time. This has driven resource allocation and improved productivity.
Easy access to information
Once a computer has been registered with a cloud, the user can now access it from different places and using different devices. Even in an office compound, employees using different computers are all able to access the cloud.
A huge benefit to businesses is the ability for multiple employees to access, edit and share folders and files that they are currently working on. This would mean that collaboration between teams of people can be greatly improved, and no time is wasted on uploading and emailing files individually.
Convenience to start up a new business
For a new company who wants to get down to business quicker, it is more convenient to set up be plugged in to a cloud than to get a new server, run them and to install software.
Disadvantages
Security threats
In cloud computing, you are basically putting your saved folders and documents on the internet. This can pose as a security risk as the sheer volume and type of data that cloud solution providers store from multiple clients make them attractive targets for hackers trying to steal your private and vital information. Engaging a cloud service provider means outsourcing the security of data to that service provider, so businesses should look for certification from reliable auditors and this should be made a priority.
Another issue is the sense of losing control over your documents. Through cloud, somebody else is hosting the hardware, software and data which could raise security concerns.
Dependency on the internet connection
Say one day your company has some problem connecting to the internet this will in turn cost the company the operations needed to be run for the day. Companies should ensure that their technical team and backup systems are always prepared and adequate.
Storage limit
While your local hard drive may be able to hold 500GB or more of data, the fact is a remote server might only allow you to store about 5GB. If you want more room then you’ll have to pay. However, even with a paid account, it can’t begin to touch the amount of room you have locally. There also may be a limit on the size of the data that can be stored.
Slow speed
Uploading and downloading documents might be rather slow, especially if there is something wrong with the connection. Of course any profitable company wouldn’t want this to affect their operations.
Unpredictable cost
When you are paying each month depending on your usage, then would mean that the cost is unpredictable and will be different each month.
Quality of service provider
This may or may not apply to a company it depends then on the service of the host company that it is subscribing to, which is lack of support. If there is a problem in using cloud, the subscriber would have to refer to the host company and late replies and responses could be costly.
The New York Times puts it this way: "The bottom line: If you need handholding or if you are not comfortable trying to find advice on user forums, the cloud probably is not ideal".
Reluctance from IT staff
Staff might not agree with moving to cloud computing as they will feel threatened to be pushed to the sidelines of doing mundane jobs, or more likely, losing their job altogether.
Applications of cloud computing in various warehouse operations
In terms of warehouse operations, we can see cloud computing giving benefits to many aspects. Warehouse operations need to store their data, so operations regarding the use of barcode technology would be better managed and controlled. In achieving better inventory management, with many different items to record, cloud computing is a good tool to be integrated.
These programs include initiatives designed to improve storage, file-sharing and communication, all of which have a big impact on inventory management. By placing warehouse management systems (WMS) in the cloud, companies give greater visibility to their supply chains.
The increased transparency renders it easier to identify trouble spots, reroute packages to areas that are facing shortages and it could also improve forecasting. Centralizing the data from the entire supply chain gives businesses greater control over their inventory. The additional productivity provides a notable advantage over traditional inventory management systems by allowing firms to make faster, more accurate adjustments based on real-time market conditions.
The benefits of having flexibility, savings and scalability are driving the adoption of cloud-based platforms and providing firms with the tools to greatly improve their supply chains.
A WMS business will often show tremendous benefit in terms of improved order fill rates, inventory accuracy and ability to provide customers with value-added services. This will help justify for the significant upfront costs in terms of software licenses, infrastructure build out (hardware, networking), and project implementation costs. While these business cases often show positive return on investment, reaching a breakeven point may take several years.
A cloud deployment option can significantly alter this business case, resulting in an earlier payback. This is true for several reasons. Firstly, cloud computing deployments happen faster. There is no infrastructure that needs to be purchased and installed. The user’s IT team does not need to be trained on system administration, system back-up/recovery or upgrades. These activities are all managed by the software provider. Removing these tasks can shorten WMS implementations by one-third, according to industry estimates.
A common challenge for many line-of-business technology buyers is the dependence on the IT organization. Operations may have a strong return on investment associated with the implementation of a WMS but they aren’t able to prioritize the WMS project high enough to get the scarce resources in the IT department.
Cloud-deployed WMS significantly reduces the burden on a company’s IT organization. As was mentioned above, tasks that typically would be the responsibility of the IT organization like server set-up, back-up and recovery are left to the technology provider. This approach allows the line-of-business user to re-prioritize their WMS project and remove the dependence on already constrained IT resources.
Cloud WMS works in the same way as the installed software; it avails reliable practices for:
Flow through.
Receiving.
Order processing.
Inventory management.
Pick ad pack processes.
Replenishment.
Loading.
Shipping.
An example of cloud computing in action
Comments
Post a Comment