Cloud Computing Adoption

Topics: Cloud computing, Enterprise resource planning, Grid computing Pages: 9 (3479 words) Published: April 3, 2013
Literature review

Cloud Enterprise Systems Adoption


In recent years, Cloud computing has revolutionalized the IT industry by introducing a whole new concept and platform of enterprise systems (ES). The traditional ES seem to be too clunky, expensive and complex for most organizations to implement and use. To improve such situation Cloud ES concept was recently introduced to offer competitive advantage to organizations through flexibility, scalability and independence in IT infrastructure and capabilities. Today, this area has not been fully explored in theory due to little available literature but it has attracted tremendous interest from the general practitioners. In the wake of the recent financial and economic crises, firms have looked ways to consolidate their infrastructures and services so that they can increase their return on investments. In line with the initiative, the development of new Information Systems (IS) applications have foster most of the firms to re-design their enterprise paradigms to form highly dynamic and agile units which is known as virtual enterprises around turbulent markets (Loo, 2011). As the world continues to move toward a truly global economy based largely on e-commerce, a new paradigm of integrated systems that possess a flexible and web-based integrated infrastructure has emerged and they are, Virtual Enterprise Resource Planning (VERP) and Federated ERP merged with Service Oriented Architecture (SOA). To further continue the competition, organizations set up ES solutions such as Cloud Computing (Loo, 2011) aiming at solving the problems of complication faced in the traditional On-Premise ES. A decision to recommend new technology may be based on evaluating capabilities, features, and challenges of the technology. Looking at the expansive literature available on both ES and Cloud Computing, few researchers have explored the integration of both systems. A significant study done by Saeed (Saeed, 2012) seek to overcome users’ concerns by developing a framework of Cloud ES. Clearly SaaS applications are maturing. Companies that either are using or plan to use SaaS applications in the next year have grown considerably over the past few years, suggesting that the barriers to adoption — either real or perceived — are being overcome. There are both SaaS offerings from an increasing number of small and medium-sized software vendors and hosted options from the well-known, large industry players (Ellis, 2010). The existing IT ecosystems has undergone structural changes, where IT infrastructures and resources are being increasingly provided as standardised and virtualised cloud services via the Internet (Karabek, 2011). The emergence of a phenomenon known as cloud computing represents a fundamental change in the way IT services are invented, developed, deployed, scaled, updated, maintained and paid for (Marston, 2010 ). Therefore, this literature review covers domains such as Current ES deployment, Conceptualisation of Cloud ES, Advantages and Challenges of Cloud ES Adoption, and Cloud ES and SMEs (SMall Enterprise).

Current ES Deployment
The review depicts traditional ES as an internal integrated information system that took shape on the manufacturing roots to seek external advantage, which could not support the e-business challenge and intensive data requirements. Hence, a newly enterprise systems, ERPΙΙ was introduced to enable the inter-enterprise collaboration through value chain participation, which requires companies to combine ES with other new types of intelligent business tools to reinforce both upstream and downstream chains (Loo, 2011) so as to extend the traditional ES capabilities. Other than that, Tarantilis coined that a new generation of Web-based enterprise information systems emerged, where the system structure is entirely modular, pluggable and separable (Tarantilis, 2008). Karabek further noted that IT resources are being increasingly provided as...

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Saini, S.L., D.K. Saini, J.H. Yousif and S.V. Khandage. 2011. Cloud computing and enterprise resource planning. Paper presented to Proceedings of the World Congress on Engineering 2011 WCE 2011, London, U.K., July 6 – 8.
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