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Friday, 28 June 2024
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Wednesday, 26 June 2024
What is Cloud Computing? Everything You Need to Know
The idea of the cloud is no longer a total mystery. It’s a term used so much in every aspect of digital transformation and modern technology that we’ve accepted that the cloud is going to be a part of everyday life – even if the implications of the cloud shift are not yet fully grasped. But not understanding cloud infrastructure and what it affords us means we’re taking this essential technology for granted.
And to better appreciate the cloud requires a better comprehension of cloud computing: What is it and how does it work?
What is Cloud Computing?
A few years ago, the basic concept of the cloud was derided by reducing it to the idea of “someone else’s computer,” a saying that decorates the coffee mugs of quite a few IT professionals. Oracle CTO Larry Ellison was equally skeptical, complaining that “we’ve redefined cloud computing to include everything that we already do.”
In the simplest terms, however, the definition of cloud computing is this:
A distributed digital infrastructural resource that delivers hosted services by way of the internet.
And while there are several different ways to define cloud computing, it all comes down to these five key aspects:
- Networking
- Data management
- Storage
- Services
- Devices
Types of Cloud Services
The cloud computing service sector has become a rapidly growing multibillion-dollar industry. To put this into perspective, Gartner estimates cloud spending will reach $260 billion by the end of 2018. And Gartner is not alone in highlighting cloud computing’s growing prevalence in the market.
In their Cloud Vendor Revenue Projection Project, 2017, Wikibon estimates that all categories comprising the enterprise cloud will expand at a compound annual growth rate (CAGR) of 19 percent from 2016 to 2026. Whereas, traditional infrastructure, on-premise software, and legacy methods of business process outsourcing will experience a negative 3 percent CAGR.
The dynamic effects of cloud adoption are already playing out and are most evident in the three wide-ranging and common models of cloud computing services: software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS).
Another defining cloud characteristic is that the computing, storage, networking, and integration capabilities of each SaaS, IaaS, and PaaS offering are effectively owned by the vendor and delivered as a service on an on-demand, subscription basis to the customer.
These three categories are designed to be stacked on top of another, which means they can work independently of each other or in a combination. Imagine a three-tiered pyramid with SaaS sitting on top benefiting end users, PaaS in the middle aiding developers and serving integration requirements, and IaaS at the base assisting system administrators.
1: Software-as-a-Service (SaaS)
Commonly referred to as the “on-demand software,” SaaS is the most commonly implemented cloud computing service for business customers. With a wide variety of application and service types, SaaS is replacing or augmenting traditional enterprise systems including ERP, accounting, human resources management, content management systems, supply chain and inventory management, and customer relationship management (CRM) programs, among others. Since SaaS doesn’t require purchasing an expensive licensed program, users can access numerous cloud applications on an as-needed basis. According to the 2017 State of the SaaS-Powered Workplace Report, the average business has 16 SaaS applications deployed, a 33 percent jump over the previous year. For more information on SaaS, read our top SaaS FAQ roundup.
2: Platform-as-a-Service (PaaS)
Think of PaaS as the middleman of cloud services as it sits central, linking SaaS and IaaS. This cloud service provides users with all the tools needed to create a digital platform. It features the groundwork for storage, networking, and virtual servers with software and hardware necessary to design, develop, test, implement, manage, and operate applications while integrating, analyzing, and sharing data.
3: Infrastructure-as-a-service (IaaS)
The IaaS layer offers essential building blocks, database storage, and a virtual platform. By building cost-saving and scalable IT solutions, the complex and expensive hardware is outsourced to a third-party cloud vendor. All of these IT components are automated for customers who are able to self-provision the storage or processing power of the IaaS platforms. Vendors are also responsible for ongoing maintenance, including system upkeep, backing up data, and business steadiness.
Types of Cloud Deployments
How an organization handles and secures business assets and needs can be reflected in how it deploys its cloud service. But cloud deployment is more than just a “private cloud vs. public cloud” debate. The rise of hybrid cloud deployment has added a whole different flavor.
1. Public Cloud
A public cloud is maintained through a third-party IaaS cloud provider. Servers, storage, and other digital resources are delivered through the internet. Since the provider absorbs all infrastructure and bandwidth costs, a customer only needs a web browser to access service and manage accounts.
Pros: Reliable service, cost-effective through economies of scale, no maintenance, elastic scalability
Cons: Often deemed unsafe for handling highly private and sensitive data; must comply with strict security regulations
2. Private Cloud
In a private cloud, cloud computing services, infrastructure, and networking are operated solely by an organization independent of other enterprises or public platforms. A private cloud can be maintained in one of two ways: A company’s data center is physically located in-house, or a third-party vendor is paid to host everything on a private instance.
Pros: More control, customizable, scalable, flexible, secure
Cons: More expensive and maintenance (if kept on-site)
3. Hybrid Cloud
As assumed, a hybrid cloud deployment is a blend of private and public clouds. This infrastructure allows data, information, and apps to be shared and transferred interchangeably. The private side can be used for sensitive processes such as finances and data recovery, whereas the public side can run high-volume applications
Pros: Enhanced agility, accessibility, security
Cons: More maintenance, complex compatibility
Cloud Computing Examples
In this day of the digital age, it’s almost impossible for anyone not to be impacted by the cloud. Some of the most common (and even mundane) everyday tasks rely on cloud computing. Here are a couple of simple examples:
Email: It’s used for personal reasons and business responsibilities. But this standardized communication method has fully shifted from a downloaded and stored method to one that’s cloud-based. That goes for any device, from a desktop computer to smartphone.
Credit/debit cards: Fewer and fewer people are using cold hard cash nowadays to finalize in-person purchases. Credit and debit cards are more abundant and convenient mostly because every bank and credit card company database is integrated with the cloud. And that’s especially true for emerging payment apps like Venmo and PayPal.
Leading Cloud Computing Companies
The biggest and most well-known tech brands wouldn’t exist without ongoing advancements in cloud computing. In fact, the top cloud computing companies have created what’s known as the “cloud wars” with never-ending one-upmanship and extensive strategic SaaS, PaaS, and IaaS deployments. And the two enterprises below have taken the wheel at dominating the IaaS cloud market thus far.
Microsoft: Deeply invested in all three levels of the cloud, Microsoft cloud computing – with its Microsoft Azure and Dynamics 365 products – is still frontrunner as a global enterprise-cloud provider. Microsoft continues to develop and deploy products around artificial intelligence (AI), machine learning (ML), and Blockchain. The company saw a $6 billion profit in Q1 this year, more than half $1 billion ahead of any other cloud computing companies.
Amazon: The massive e-commerce brand isn’t far behind Microsoft in the cloud service space. it’s $5.44 billion 2018 Q1 is still second, but Amazon cloud computing, Amazon Web Services (AWS), is making strides in the cloud services movement, and still ahead of Google’s cloud computing ventures.
Benefits of Cloud Computing
Today’s business environment relies more and more on devices with Internet of Things (IoT) capabilities (especially smartphones and tablets). As a result, a majority of offices are essentially becoming virtual workspaces. Therefore, easier and more efficient access to data is possible through cloud computing.
A recent study by market research company Vanson Bourne revealed that cloud computing is having a measurable business impact. Companies that have implemented cloud services have seen a nearly 21 percent increase in speed to market, a 19 percent jump in process efficiency, and a 20 percent uptick in company growth. Here are even more advantages of cloud computing:
- Flexible costs: Cloud computing spins the table on traditional capital expenditure (capex) spending, instead the majority of cloud spend is operational expenditure (opex). Since a third-party vendor will take care of maintenance, a company doesn’t have to fund a support team to fix problem servers. The upfront costs of infrastructure needs like local server purchases are reduced.
- Improved mobility: With the cloud, apps and data are accessible anywhere, anytime. And that’s all due to the ever-increasing number of mobile devices like smartphones and tablets. The “anywhere, anytime” benefit also certainly applies to business. Employees gain flexibility, becoming more efficient with workflows and customer service.
- Increased collaboration: Cloud computing is essentially built for improving work processes, and that includes data flows between coworkers and business partners. Organizations demand more apps for file sharing and streamlined workflows. Remote workers can instantly connect and communicate with fellow employees and important clients.
- Economies of Scale: Cloud computing reduces cost by leveraging economies of scale. A Booz Allen Hamilton study found that the cloud approach could reduce costs by 50 to 67% for a deployment of 1000 servers. Cloud customers can take advantage of lower costs from vendors’ economies of scale, reducing their investments in on-premises infrastructure.
- Operational: Technology will never be perfect, but some are just less complex. That includes the infrastructure of cloud computing, which usually runs on separate servers through a third-party vendor. So, when problems do arise, it’s the vendor’s job to promptly fix the problem instead of having on-site IT staff spend time and resources file claims or updating servers.
Disadvantages of Cloud Computing
But that’s not to say that cloud computing doesn’t have its shortcomings (technology will never be perfect, remember?) There will still be some level of downtime, albeit minimal, and there’s always the chance of a data breach and leaky security. The disadvantages of cloud computing aren’t all doom and gloom, though. There are ways to mitigate risks.
1. Downtime
As more companies rely on third-party cloud service vendors, these providers can become overloaded with excessive client requests and may face technical stoppage. Just like any cloud-related outage or lost internet connection, a business can come to a halt with inaccessible apps, data, and servers.
How to minimize the problem: Demand a service level agreement (SLA) from your provider guaranteeing uptimes in excess of 99.55 percent.
2. Security
Even the biggest and most well-known brands with the best security practices aren’t completely protected from having their data compromised. And storing important, sensitive information on external service clouds aren’t foolproof measures, either. There are always loopholes in susceptible systems, especially in public clouds where accessibility is wide open to hackers, careless users, and other vulnerabilities.
How to minimize the problem: Limit data access based on user context.
3. Limited control
The cloud offloads much traditional IT maintenance to the cloud service. However, this also leads to less control over IT process. A company’s application leader will only have access to the frontend management tooling for apps, services, and data, but not the backend infrastructure.
How to minimize the problem: Total control might not be an option on the backend, but there’s always a possibility for more visibility into how critical data is being handled by the cloud services provider.
Future of Cloud Computing
The International Data Corporation (IDC) estimates that already in 2024 at least half of IT spending is cloud-based and only set to grow over the coming years. In fact, it is likely that virtually all enterprises worldwide will consume some form of cloud service, signaling that inevitably most applications and enterprise information flows will be cloud-based.
The cloud will become more that than just a consumption model – it will be central to shaping business IT strategy.
Monday, 24 June 2024
AI in finance is like ‘moving from typewriters to word processors
The accounting and finance professions have long adapted to technology — from calculators and spreadsheets to cloud computing. However, the emergence of generative artificial intelligence presents both new challenges and opportunities for students looking to get ahead in the world of finance.
Research last year by investment bank Evercore and Visionary Future, which incubates new ventures, highlights the workforce disruption being wreaked by generative AI. Analysing 160mn US jobs, the study reveals that service sectors such as legal and financial are highly susceptible to disruption by AI, although full job replacement is unlikely.
Instead, generative AI is expected to enhance productivity, the research concludes, particularly for those in high-value roles paying above $100,000 annually. But, for current students and graduates earning below this threshold, the challenge will be navigating these changes and identifying the skills that will be in demand in future.
Generative AI is being swiftly integrated into finance and accounting, by automating specific tasks. Stuart Tait, chief technology officer for tax and legal at KPMG UK, describes it as a “game changer for tax”, because it is capable of handling complex tasks beyond routine automation. “Gen AI for tax research and technical analysis will give an efficiency gain akin to moving from typewriters to word processors,” he says. The tools can answer tax queries within minutes, with more than 95 per cent accuracy, Tait says
While such advances present challenges for workers, including potentially making some tasks and skills redundant, they also offer opportunities. Simon Stephens, AI lead for audit and assurance at Deloitte UK, says: “One way it will help is by automating large portions of manual data entry, saving time whilst allowing people to focus on more value-added and often more interesting tasks.”
He suggests junior staff could engage in more complex, discerning work earlier in their careers. In response to these changes, financial training programmes are evolving to place a much sharper emphasis on AI. David Shrier, professor of practice in AI and innovation at London’s Imperial College Business School, observes: “We absolutely need finance education to produce students who are fit for purpose in this new world.” HEC Paris, for instance, already trains students to use generative AI for financial data analysis. Soon, it will be used for decision-making, too.
It is about readying them for the “possibility that gen-AI will replace spreadsheets”, notes Evran Örs, academic director of HEC’s Master in International Finance programme. Similarly, Cambridge Judge Business School in the UK has introduced technical courses and recruited specialist practitioners for its Master of Finance degree, aimed at professionals with work experience.
Marwa Hammam, co-director of the programme, notes that all students now cover the foundational concepts of machine learning and its practical applications in trading, asset management, accounting, and auditing. Beyond technical abilities such as data analysis, however, soft skills such as critical thinking, leadership, and networking are increasingly important for finance professionals, experts say. Angela Gallo, director of the banking and international finance MSc at Bayes Business School in London, stresses the enduring relevance of interpersonal skills in a more automated sector. “While automation has improved efficiency, it has sometimes sacrificed client relationships,” she says. “AI could restore the importance of those relationships.”
Gérard Despinoy, executive director of the Master in Finance at France’s Essec Business School, suggests finance graduates should strengthen their programming skills, particularly in VBA, Java, R or Python. Mastery of these languages can streamline financial analysis, automate routine tasks, and enable the development of fresh financial solutions, he says. Students can acquire these skills through coursework, industry certifications, and online learning platforms.
Andrew Harding, chief executive of management accounting at the Association of International Certified Professional Accountants, highlights the importance of life-long professional development to stay competitive in an evolving job market: “Accounting and finance professionals must adapt their mindset to learn, unlearn, and relearn,” he says.
Friday, 21 June 2024
The Future of Technology: Insights from the Mobile World Congress 2024
The International MBA class had the pleasure of attending the Mobile World Congress (MWC) and 4 Years from Now (4YFN) in Barcelona this past February. These significant exhibits played an immense role in their Global Trends in Tech Innovation course taught by Professor and Entrepreneur Bart Huisken. The course focuses on exploring the future of technology and its impact on well-established companies as well as startups.
An Insight into MWC & 4YFN
MWC is an annual trade show with exhibitors from the mobile communications industry and over 100,000 attendees from all around the world. This trade show partners with 4YFN to connect digital startup innovators with investors and venture capitalists. The exhibitors and speakers range from big-name companies like Huawei and NTT Data to startups including Cocoon Creations and Bike-On Technologies.
As part of the Global Trends in Tech Innovation course, students worked with their final project teams to conduct research on the impact of future technologies within the industry. At MWC and 4YFN, students interviewed and networked with speakers, attendees, and exhibitors to learn more about the future of technology and startups.
At the event, students tried out some of the coolest, latest technologies such as playing with a robot dog named Tecno, having a conversation with AI human Ameca, using AI glasses, and experiencing extended reality (ER) through the five senses. In addition, there were many sessions where speakers from large and small companies shared their experience and knowledge on hot-tech topics today. On top of these industry talks were sessions exploring interested investors and startup experiences for people who want to create their own startup.
Student Takeaways
Alberto Valdovinos, an MBA student from Mexico, noted that “AI is everywhere. You have to get used to using it because it’s the new Internet phenomenon – you have to jump on board, or you’ll be left behind. At MWC, AI proved to be more in the early stages of being figured out by companies. So, we’re now starting to see the successful and unsuccessful attempts of using it.”
Nowadays, technology is omnipresent, constantly changing and advancing, making it hard to keep up with. Attending MWC and 4YFN was an extraordinary opportunity for MBA participants to better understand the impact of technology on businesses and how to use this technology as a competitive tool in a company or startup.
The MBA class concluded their MWC and 4YFN experience by presenting their findings on interviews with attendees from the trade show. MBA student, Jessica Che, from the United States, expressed how insightful the trade show was for her team’s final project to open an electric vehicle repair workshop. “We spoke with a few people with extensive experience in the automotive industry who emphasized the growing relevance of AI in vehicles as well as repairs. One key insight we got was to consider EV repairs in terms of the whole ecosystem rather than solely the repairs, which helped put our project into more perspective.”
For their final project, MBA student, Camilo Videla from Chile and his team, are focusing on the usage of satellite imagery with drones to reduce damage in crops and increase production. During the four days at MWC, he learned the ways “drones and satellite imagery have the potential to revolutionize industries such as agriculture, wine production, and help prevent the impact of climate change, such as floods or fires.”
Attending MWC and 4YFN for Global Tech Trends was a phenomenal and unique opportunity for the International MBA class. They not only learned more about technology today, but also put their research to the test while making connections with experts in the field. Camilo remarks,
Author, Jessica Che, International MBA participant
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