Cutting down on my Tax expenses through Cloud computing

Maintaining an IT function requires serious capital investment. Tax depreciable asset registers can grow significantly as a result and can be difficult and costly in terms of time and money to maintain and update. The high cost is also a barrier for new businesses, which would likely prefer to spend funds raised on actively pursuing the business venture.

Existing large businesses are more likely to progressively shift to private clouds, such as running their own inhouse cloud for security. Large corporates are less likely to move to external clouds until they are confident that security, privacy and other legal issues are unlikely to be problems in either the immediate or long term. 

A shift to the cloud means moving from maintaining your own capital-intensive IT infrastructure, to operational service-based expenditure for day-to-day running by third party specialists. From a tax perspective, the benefits could include cost savings resulting from the shift from capital expenditure deductible over time to expenditure on revenue account.

References:

http://www.deloitte.com/assets/Dcom-Australia/Local%20Assets/Documents/Services/Consulting/Deloitte_Cloud_and_Tax_2012.pdf

Security a blindside of Cloud Computing

Cloud Computing is a flexible, cost-effective, and proven delivery platform for providing business or consumer IT services over the Internet. Though, cloud Computing presents an added level of risk because essential services are often outsourced to a third party, which makes it harder to maintain data security and privacy, support data and service availability, and demonstrate compliance.  Despite of the hype surrounding the cloud, enterprise customers are still reluctant to deploy their business in the cloud. Security is one of the major issues which reduces the growth of cloud computing and complications with data privacy and data protection continue to plague the market.

References:

http://www.sciencedirect.com/science/article/pii/S1084804510001281

Issues to be considered when implementing Cloud computing

The idea of cloud has been such popularized that there is a rush of implementing virtualization amongst CIOs. This has lead to more complexities than solutions. The issues with cloud implementation are mostly due to the haste without proper analysis of one’s situations and requirements beforehand. Following is a brief discussion on the challenges faced by organizations during implementing cloud computing.

References:
http://www-304.ibm.com/easyaccess3/fileserve?contentid=215289

Lessons from the Megaupload episode

Often i wonder what would happen to my data should a cloud service provider such as dropbox or Facebook close shop. After all we saw megaupload forced to shut down. Is that a way of saying the good old hardware storage device is still an option?

References:
http://www.extremetech.com/computing/114803-megauploads-demise-what-happens-to-your-files-when-a-cloud-service-dies

http://www.techdirt.com/blog/innovation/articles/20120216/03595717776/how-megaupload-shutdown-has-put-cloud-computing-business-plans-risk.shtml

Some issues with cloud computing

While cloud computing could be about one of the biggest revolutions of the internet business thinking of moving this IT platform must consider a few challenges that  are associated with this great technology and they include:

Issues of legislation: Legislation is one valid concern that is far from fully addressed with concern to cloud computing as such the need for both the client and service provider to be well informed about the specific terms and conditions in the contract they signed.

Data theft: Hackers are constantly on the lookout for ways to get private information and cloud platform is one place they are always targeting.

Availability of data: Where would your data be if a cloud provider is to close shop is one issue a business must deal with in moving to the cloud, this is important as the client does not actually know where is data are stored.

Reference:
http://cloud-practice.de/sites/default/files/downloads/ca_technologies_cloud_primer.pdf

Cloud computing changing the usual way of doing things

Cloud computing can be easily likened to technologies such as the Walkman and the microcomputers which changed the way things are done. While it is not an invention it can be considered a practical innovation that combines numerous existing technologies such as bandwidth, networks, time sharing and browser interfaces in just one platform. Prof. Kenneth C. at the Informs conference in Dallas 1997 described cloud computing as “a computing paradigm where the boundaries of computing will be determined by economic rationale rather than technical limits”, a business model that sure fits in with SMEs.
Reference:
http://cloud-practice.de/sites/default/files/downloads/ca_technologies_cloud_primer.pdf