Information Technology (IT) innovation is transforming the traditional business world. Cloud computing as a flexible collection of computers on the Internet begins to perform tasks traditionally performed on corporate computers. Currently, cloud computing is the fastest growing form of computing, with companies spending about $109 billion on public cloud services in 2012, and an estimated $207 billion by the end of 2016 (Gartner, 2012).
The strength of cloud computing and the growth of the mobile digital platform allow organizations to rely more on telework, remote work, and distributed decision making. This same platform means firms can outsource more work, and rely on markets (rather than employees) to build value. It also means that firms can collaborate with suppliers and customers to create new products, or make existing products more efficiently.
1. Write an introduction, which is expected to be a simple and brief overview of what you are discussing in your document. (5 Marks)
2. In the context of cloud computing provide a definition of the term “Software as a Service (SaaS)” drawn from research using articles/journals. (10 Marks)
3. Conduct research, using journal articles, on an organisation within an industry sector that you are familiar with. Within your chosen organisation identify the use of SaaS model for a business information system (e.g. accounting, customer relationship management, management information systems, or human resource management). From your research you should then:
a. Discuss two key benefits for an organisation adopting cloud based SaaS model for the type of information system you have identified. Your answer should be supported by articles/journals from your research. (20 Marks)
b. Identify three key challenges associated with introducing cloud based information system relating to the business information system you have identified in part 3a. (30 Marks)
c. For each of the three key challenges identified in part 3b, use supporting evidence from your research to analyse three key measures/approaches that minimise the impact of the challenges you have identified. (30 Marks)
4. Use of relevant structure, spelling, grammar and Harvard referencing (5 Marks)

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Cloud computing can be described as a hosted service delivery via the Internet, it allows companies to utilize computing resources instead of building and maintaining in-house computing infrastructure. Putting it in simple terms, cloud computing allows for storage and access to data and programs online, instead of taking the space on the hard drive of a computer. According to the National Institute of Standards and Technology (NIST), cloud computing is defined as a model that enables on-demand network access to a pool of shared computing resources which are the servers, storage, networks, applications and services. These resources can be provided rapidly and released with a minimal effort and interaction. (NIST cloud computing, no date)
Cloud Computing as a term encompasses a range of services which are Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS)....

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