Cloud Computing is a computerized system
based on network / Internet. The resource, software, and application
information is provided for used by other computers. Why that concept called
Cloud Computing? Because the Internet can be considered as a large cloud
(usually in the network scheme, emblem of the internet is cloud) that contains
a large collection of connected computers, so the Cloud Computing can be
defined as a computerized -based collection of connected computers.
Cloud computing can be considered as an
extension of virtualization . The Companie or private person can put an
application or system on the internet , not manage it with internally. Examples
of cloud computing is a public version: Google Docs, Google Spreadsheets , Etc.
2. Benefits of Cloud
Computing
1.
Achieve
economies of scale – increase volume output or productivity with fewer
people. Your cost per unit, project or product plummets.
2.
Reduce
spending on technology infrastructure. Maintain easy access to your
information with minimal upfront spending. Pay as you go (weekly, quarterly or
yearly), based on demand.
3.
Globalize
your workforce on the cheap. People worldwide can access the cloud,
provided they have an Internet connection.
4.
Streamline
processes. Get more work done in less time with less people.
5.
Reduce
capital costs. There’s no need to spend big money on hardware, software or
licensing fees.
6.
Improve
accessibility. You have access anytime, anywhere, making your life so much
easier!
7.
Monitor
projects more effectively. Stay within budget and ahead of completion
cycle times.
8.
Less
personnel training is needed. It takes fewer people to do more work on a
cloud, with a minimal learning curve on hardware and software issues.
9.
Minimize
licensing new software. Stretch and grow without the need to buy expensive
software licenses or programs.
10.
Improve
flexibility. You can change direction without serious “people” or
“financial” issues at stake.
3. Cloud Computing
Based Services Principles
Cloud Based Services is the general term
given to a variety of services that are accessed via the Internet or a
proprietary network. Broadly divided into three categories:
Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and
Software-as-a-Service (SaaS), Cloud Based Services allow users to store data,
access software and access services and platforms from almost any device that
can access the cloud via a broadband connection. The use of cloud services has
greatly increased over the past decade. As a result, states have taken a
wide range of positions regarding the way they characterize Cloud Based
Services for purposes of applying sales and use tax, some of which are
difficult for businesses to understand and comply with. In addition, the
inconsistency between the states creates further complexity and confusion.
The National Conference of State
Legislatures’ Executive Committee Task Force on State and Local Taxation has
undertaken a process to study and better understand Cloud Based Services.
Based on this effort, the Task Force recommends the following principles for
states to consider if developing legislation governing the taxation of Cloud
Based Services:
1. To ensure that taxation is equitable, states contemplating taxes on Cloud Based Services should:
1. To ensure that taxation is equitable, states contemplating taxes on Cloud Based Services should:
·
Establish
consistent sourcing regimes that recognize the special challenges that cloud
computing presents so as to avoid the multiple taxation of individuals or
businesses in multiple states; and
·
not
impose discriminatory taxes on Cloud Based Services.
2. States considering taxes on Cloud Based
Services should base their decisions on the nature of the service and not on
the nature or type of provider.
3. To ensure that taxation is clear,
efficient, and fair, states choosing to impose a tax on Cloud Based Services
should:
·
Avoid
imposing any tax on Cloud Based Services through administrative action and only
consider imposing the tax through statutory imposition;
·
Carefully
draft definitions to provide clarity to buyers and sellers of Cloud Based Services;
·
Recognize
the broad range of services included in Cloud Based Services and address those
differences within the statutory scheme;
·
Design
any tax impositions only on specific and clearly delineated services or
where state statutes provide for broad taxation of services, exclusions or
exemptions, if any, for certain Cloud Based Services should be clearly
delineated.
·
Encourage
the involvement of providers of Cloud Based Services in any drafting efforts
involving the taxation or sourcing of those services; and
·
Provide
clear and consistent rules to govern bundled transactions involving Cloud Based
Services.
4. Characteristics of
Cloud Computing
Cloud computing requires
searching for a cloud provider. Whether your cloud is public, private, or
hybrid, look for elasticity, scalability, provisioning, standardization, and
billed usage:
·
Elasticity
and scalability. The cloud is elastic, meaning that resource allocation
can get bigger or smaller depending on demand. Elasticity enables scalability,
which means that the cloud can scale upward for peak demand and downward for
lighter demand. Scalability also means that an application can scale when
adding users and when application requirements change.
·
Self-service
provisioning. Cloud customers can provision cloud services without
going through a lengthy process. You request an amount of computing, storage,
software, process, or more from the service provider. After you use these
resources, they can be automaticallydeprovisioned.
·
Standardized
interfaces. Cloud services should have standardized APIs, which provide
instructions on how two application or data sources can communicate with each
other. A standardized interface lets the customer more easily link cloud
services together.
·
Billing
and service usage metering. You can be billed for resources as you use
them. This pay-as-you-go model means usage is metered and you pay only for what
you consume.
5. Risks of Cloud
Computing
Before considering cloud computing
technology, it is important to understand the risks involved when moving your
business into the cloud. You should carry out a risk assessment process before
any control is handed over to a service provider.
You should consider the following issues:
1. Privacy
agreement and service level agreement
You will need to have suitable agreements
in place with your service providers before services commence. This will
safeguard you against certain risks and also outline the responsibilities of
each party in the form of a service level agreement (SLA). You should read the
SLA and ensure that you understand what you are agreeing to before you sign.
Make sure that you understand the responsibilities of the service provider, as
well as your own obligations.
2. Security
and data protection
You must consider how your data will be
stored and secured when outsourcing to a third party. This should be outlined
in the agreement with your service provider, and must address mitigations to
governance and security risks. It must cover who has access to the data and the
security measures in place to protect your data.
3. Location
of data
Cloud computing service providers are
often located outside Australia. Before committing, you should investigate
where your data is being stored and which privacy and security laws will apply
to the data.
4.
Legislation and regulation
You will need to be aware of Australian
legislative and regulatory requirements when storing personal data (e.g.
the Privacy Act 1988 and the Archives Act 1983 will apply). If the data is being
stored outside of Australia (e.g. if your business uses an overseas service
provider), you will also need to be aware of the legislation and regulation
requirements in that geographic location.
6. The Concept of
Cloud Computing
Cloud Computing is a technology that uses
the internet and central remote servers to manage data and applications . Cloud
Computing helps consumers and businesses to use an applications without
installation, and can accessing their personal files at any computer with
internet access. This technology give more efficient by centralizing storage,
memory, processing and bandwidth.
On the concept of Cloud computing there is
a term back-end and front-end. Both are connected by a network. While the back
end is what is referred to as a cloud, the resource of the cloud taken by the
front-end. Where it provides what is needed by the Front-end.
3 segments of the Cloud Computing: applications,
platforms, and infrastructure . Each segment gives
purpose and offers different products for businesses and individuals around the
world . In June 2009 , the study conducted by VersionOne found that 41 % of
senior professionals in the IT field do not know what cloud computing is and
two- thirds from finance professionals are confused by the concept.
References :
