understanding the factors of cloud computing adoption in malaysia.docx

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    CHAPTER 1 : INTRODUCTION

    1.0 Introduction

    The computing industry is experiencing and witnessing a paradigm shift in the

    magnitude on how millennium computing is performed globally. The emergence of cloud

    computing has drastically changed the way information technology (IT) services are used,

    manipulated and operated within organizations. The primary obstacle in embracing and

    migrating towards IT appreciation in pursuing excellence and productivity within the overall

    business performance is non-other than the capital and operational expenditure investment to

    establish IT platform infrastructure. When the cost of computing increases due to complex

    information architecture and infrastructure that deters organizations from employing

    advanced IT services, the emergence of cloud computing provides and offers solutions to the

    problem by reducing upfront expenses of computing (Marston et al., 2011). In addition,

    cloud computing services are extensively used for financial analysis, medical information and

    diagnoses to online gaming. International Data Corporation (IDC) projects cloud services will

    outpace traditional IT spending by 2014 (Gens, 2010).

    Cloud computing services involve a complex infrastructure of software, hardware, processing

    and storage integration (Maggiani, 2009). In addition, it can be consider as a relative new

    form of computing where scalable, elastic IT capabilities are delivered to customers using the

    Internet (Plummer, 2009). Clouds are defined as clusters of distributed computers, providing

    on-demand resources and services over a network, with the scale and reliability of a data

    centre (Grossman, 2009). According to Zhang and Zhou (2009), cloud computing provides an

    environment to enable resource sharing in terms of scalable infrastructures, middleware and

    application platforms and value-added business applications. Resources (e.g., CPU and

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    storage) in the cloud model are provided as general utilities that can be leased and released by

    users through the Internet in an on-demand fashion (Zhang, Cheng & Boutaba, 2010).

    The primary business survival will highly dependable on its capability to balance off between

    the cost and productivity to generate extensive and scalable revenue or returns. The

    complexity and global competition is driving organizations to concentrate on the effort to

    reduce cost, increase profitability and enhance productivity ( Misra & Mondal, 2011; Sultan,

    2009; Winans & Brown, 2009). The availability of Information Technology (IT) products,

    software and solutions offered by service provider made available across the globe had put

    tremendous pressure on organizations to choose and adopt the newest technology which

    enable them to achieve their corporate business philosophy of reducing cost, sustaining

    competitive edge, and improve the end result (Demirkan et. al., 2008;Gill,2011).

    Cloud Computing is an innovation where information technology services and capabilities

    are integrated and delivered to an organization or individual over the internet by a centralized

    provider, often for a fee (Robinson, 2009). According to Gill (2011), cloud computing is a

    technology process for delivering highly scalable services enabling organizations to adapt to

    changing and challenging business requirements by easily acquiring and releasing computing

    services as needed.