The cost effectiveness in cloud computing within an accounting organization

The Cost Effectiveness of Cloud Computing within an Accounting Organization
Table of Contents
1 Introduction 4
1.1 Background 4
1.2 Significance of the Topic 4
1.3 Research Problem 5
1.4 Research Questions 5
1.5 Purpose of the Study 5
1.6 Methodology 5
1.7 Good Title for Study 5
2 Literature Review 6
2.1 Cloud Computing Definition 6
2.2 Types of Cloud Computing Services 6
2.2.1 Infrastructure as a Service (IaaS) 6
2.2.2 Platform as a Service (PaaS) 7
2.2.3 Software as a Service (SaaS) 7
2.3 Deployment of Organizational Cloud Services 8
2.3.1 Public Cloud 8
2.3.2 Private Cloud 8
2.3.3 Hybrid Cloud 9
2.4 Effectiveness of Cloud Computing 9
2.4.1 Cost-Savings 9
2.4.2 Remote Accessibility 10
2.4.3 Scalability and Flexibility 11
2.4.4 Security 11
2.4.5 Energy Efficiency 11
3 Methodology 12
3.1 Research Approach and Design 12
3.2 Data Collection Sources & Selection Plan 12
3.3 Proposed Interview Questions 13
3.4 Sample Population 13
3.5 Ethical Considerations 14
3.6 Data Analysis Plan & Rationale 15
4 Contributions to Theory or Practice and their Significance 16
5 Ethical Issues and Methods to Address 17
6 Conclusion 17
Introduction
Background
Corporations of all sizes in the accounting industry, in addition to other industries such as retail, information technology, insurance, and media industries, capitalize on public cloud services. The steadily advancing features of the cloud, including infinite and unrestricted storage and powerful analytic tools, system infrastructure software, various accounting applications in addition to enterprise resource management and customer relationship management, play a pivotal role in everyday business operations. Significantly, in the contemporary setting, companies and entrepreneurs in the accounting sector are no longer constantly installing software apps on their computers or computer systems situated within the premises to operate their businesses. Rather, they are opting for the cloud. Cloud computing is facilitating substantial agility for companies. The advantages of solely paying for the software and hardware services utilized and also leveraging on the cutting-edge technologies enable the companies to improve their digital operations and aid them in innovation and, subsequently, success in the market.
Significance of the Topic
Cloud computing continues to be a significant topic in the accounting industry, owing to its ease in the level of flexibility, scalability, and simplicity of gaining access to systems across the world. Whereas customary IT structures can preclude an accounting organization’s capability of conducting business operations productively, cloud computing can facilitate a greater level of control and data backup, security accessibilities and also enables the accounting enterprises in business diversification. Numerous accounting organizations are shifting towards cloud computing owing to the reason that they presently understand the benefits facilitated, including increased mobility and heightened satisfactory interactions with consumers. Furthermore, rather than spending massive amounts of money on investing in servers, storage, and IT assets, progressively, more accounting organizations are emphasizing cloud computing because they can focus on various elements of their business operations when implementing the accounting software on the cloud platform. Furthermore, personnel and managers of the accounting organizations can gain accessibility to the cloud infrastructure at any given the time of day and from varying geographical areas. Ultimately, this provides the organization with a competitive advantage because the business operations continue running smoothly.
Research Problem
In the present day, the advancement of globalization has significantly increased the level of competition in industries and sectors. Multinational companies in different sectors, including the accounting industry, have business operations across the globe. However, there is increasing competition from both local and international businesses. Also, the advancement of technology has intensified the level of competition, prompting organizations to seek out competitive advantages. Significantly, competitive advantages do not simply emanate in one distinctive form, but rather they come about from different areas. A fundamental area in which companies are seeking out advantages over market rivals is cost. A cost-effective structure has numerous advantages for organizations. A company can weaken its rivals and have a greater level of profits generated by diminishing the costs incurred. Cloud computing has become one of the key ways in which accounting organizations have sought to have a competitive advantage over their market rivals.
Research Questions
The following research questions will guide the research study:
1. What is the applicability of cloud computing in accounting organizations?
2. How do cloud computing services facilitate cost-effectiveness?
3. What are the various ways that cloud computing generates cost savings for accounting organizations?
Purpose of the Study
This study’s purpose is to comprehensively examine the impact of implementing cloud computing services to an accounting organization in terms of cost-effectiveness.
Methodology
The qualitative approach will be utilized in the research study. The data employed for this research study will be collected through interviews. These will be administered using structured interviews that will be undertaken through different avenues, e-mail, post, telephone, and Skype.
Good Title for Study
A suitable title for the study would be The cost-effectiveness of cloud computing within an accounting organization.
Literature Review
Cloud Computing Definition
Cloud computing is delineated as a computing capability that facilitates a construct between the computing resource and its fundamental technical construction and design, facilitating expedient, on-demand network accessibility to a collective group of configurable computing resources that can be quickly provided and divulged with negligible management struggle or service provider contact. This basic definition of cloud computing accentuates the five fundamental features, which include on-demand self-service, wide-ranging network accessibility, resource sharing, rapid elasticity, and services that are measured (Yarlikas and Bilgen, 2015).
Types of Cloud Computing Services
There are three most frequently and extensively embraced cloud computing services, including infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).
Infrastructure as a Service (IaaS)
This is a cloud computing model in which virtual infrastructure is provided and managed by external cloud providers for the organization. Concerning infrastructure as a Service, organizations can outsource for data and information storages, various services, data centers, in addition to different constituents for data networking, all of which are connected over the internet and provide the same kinds of services and functionalities as the infrastructure physically situated within the corporate premises. Fitting examples of the extensive usage of infrastructure as a Service are automatic and policy-oriented operations like internal networking, data recovery, backup services, and also website hosting. In this type of cloud computing service, it is the service provider that is fully liable for the construction of the servers and the storage centers, networking services, and installation of security and computer firewalls, and also physical data spaces and centers that are situated within the organizational buildings. Some of the renowned IaaS service providers include Google Cloud Platform and also Amazon EC2 (Mehmood, Katib, and Chlamtac, 2020).
Platform as a Service (PaaS)
Notably, Platform as a Service advances its services from Information as a Service. In this particular case, the vendor of cloud services partake in the delivery and rendering of computing resources, both cloud software and hardware infrastructure constituents such as operating systems, necessitated for developing, testing, and advancing applications. The Platform as a Service setting facilitates cloud users, obtaining their level of accessibility through different webpages, in order to partake in the installation and hosting of various data sets, development of implements and applications for business analysis, in addition to constructing and preserving essential hardware (Prabhu, 2015).
Software as a Service (SaaS)
This type of cloud computing service is distinctive in the sense that it includes both Platform as a Services (PaaS) and Infrastructure as a Service (IaaS). In this particular case, the cloud service provider is responsible for the delivery of the whole software suite. A fitting example is a pay-per-use model whereby the organization solely pays for the software and hardware services utilized. Software as a Service enables the users to gain simple accessibility to software applications over the internet, for instance, electronic mail, and accounting worksheets. For example, one of the most renowned examples of SaaS is Microsoft Office 360, which encompasses different applications such as Microsoft Word and Microsoft Excel over the internet. SAP and Oracle Cloud are other fitting examples (Jamsa, 2016).
Deployment of Organizational Cloud Services
Cloud computing services can be deployed to accounting organizations in three different types of ways to facilitate the capability of the business enterprises in the management and protection of assets, in addition to business necessities (Surianarayanan and Chelliah, 2019).
Public Cloud
Overall, the public cloud is delineated as software as a Service (SaaS) services that are provided to both individual and organizational users over the internet. The public cloud is considered to be the most cost-effective option for the different users whereby the cloud service provider takes up the costs incurred for building infrastructure and also setting up the bandwidth (Surianarayanan and Chelliah, 2019). For the most part, the public cloud has configurations that are confined, and the expense is ascertained by the level of capacity used. Bearing this in mind, the restrictions of the public cloud take into account its lack of provisions. Furthermore, despite the significant reliability of the public cloud, diminished costs, and negligible maintenance on top of on-demand scalability, this kind of cloud deployment is not appropriate for companies operating with sensitive and private data and information as they have to comply with strict security rules and regulations (Surianarayanan and Chelliah, 2019).
Private Cloud
The private cloud is utilized by major organizations to partake in the construction and management of their individual data centers for distinctive needs relating to accounting operations and information technology operations. Specifically, with the private cloud, the organization can obtain a greater level of control over personalized, scalable, and flexible services, whereas enhancing the protection and security of organizational assets and business operations (Surianarayanan and Chelliah, 2019). Furthermore, it is conceivable to build the infrastructure within the organizational premises or outsource such infrastructure to an external third-party service provider. Irrespective of whichever option that the organization selects, it has the capability of sustaining the hardware and software setting over a private network exclusively for the organization. This type of cloud service deployment is preferred by major accounting companies, both large-scale and medium-scale, also, to accounting enterprises linked to the government (Chang, Abu-Amara, and Sanford, 2018).
Hybrid Cloud
Hybrid cloud is the integration of both a public cloud and private cloud, which renders an additional level of flexibility to the organization and at the same time facilitating a level of control over pivotal operations and business assets, on top of greater traceability and cost-efficacy (Surianarayanan and Chelliah, 2019). The construction and design of the hybrid cloud facilitate the organizations to leverage and capitalize on the public cloud when essential, owing to their simple capability to transfer organizational workload. Within the hybrid system, it becomes conceivable for the organization to utilize the public cloud for undertaking significant and high amounts of business operations such as e-mails and in-house communication. However, the private cloud is employed for dealing with sensitive and important organizational data and information such as the accounting data, financial reports, and recovering pivotal data, in addition to undertaking business maintenance (Surianarayanan and Chelliah, 2019).
Effectiveness of Cloud Computing
Cost-Savings
The costs incurred by an organization within the premise comprise hardware and software costs, personnel costs, system support costs, design, and building costs, and several others. In due time, these expenses usually tally up and become an expensive outlay to bear. In contrast, cloud computing expenses are substantially more cost-effective. With the advent of the pay per use model, companies are able to save plenty of money compared to on-premise services. For instance, with cloud computing, the costs incurred for the investment in servers and storage centers disappear as they are not necessitated (Hsien, Yang and Hwan, 2016). Secondly, cloud computing is beneficial to the organization as it helps in prolonging the life span of the computers being utilized. Furthermore, organizations are able to save money on personnel costs. This is largely because all activities are undertaken online through the cloud platforms, which implies that there is no need for employing IT staff. What is more, the company is able to achieve cost savings in regard to maintenance and downtime. This is largely because this responsibility is taken up by the cloud service provider, who actively partakes in the monitoring, maintenance, and upgrading of the hosted programs, curtailing downtime, and guaranteeing that the applications are accessible when necessitated. Therefore, when the company has decreased downtime, it implies that there is a greater level of productivity, greater revenue, and greater prospects (Chang, 2015).
Remote Accessibility
Through cloud computing, organizations can gain accessibility of their data, files, and folders from any company device at any given time and any given geographical location. Such remote accessibility enables the company to carry out fast and simpler security updates, resolve problems faced in real-time and also updating company settings devoid of shifting (Chang, 2015). This helps the company in saving costs, time, and also maintaining high levels of productivity. Cloud computing is also beneficial to the company because it implies that since files, applications and data can be accessed online, it means that the firm does not need to make investments of computers, servers, and storage centers in different locations and different premises. In the long run, this provides the company with cost savings. Furthermore, information sharing facilitates by cloud computing makes it possible for maximizing efficiency levels and also costs incurred by the firm as a whole (Sahana, 2019).
Scalability and Flexibility
Cloud computing comes with rapid elasticity, and this facilitates resources engaged for a certain application to quickly grow and well along in the future decline to track the actual workload for cloud consumers to have the ability to satisfy consumer demand devoid of taking financial risks linked with precisely forecasting future demand. Furthermore, different from infrastructure set within the premises, cloud computing provides organizations with an exceedingly scalable platform that will develop and advance alongside the business. By embracing cloud computing solutions, it enables organizations to adapt easily (Rittinghouse and Ransome, 2016).
Security
Cloud computing facilitates greater security by ensuring that sensitive data is safe via applying solutions that are secure and encrypted, recovery of backup, and also firewalls. The heightened level of security guarantees that the organization can achieve cost savings through an avoided loss of data (Xue and Xin, 2016).
Energy Efficiency
An additional advantage of cloud computing is the efficacies linked to energy savings. Specifically, cloud service providers have both the scale and infrastructure essential to facilitate efficacious sharing of computing, storage, security, networking, and also data center resources amongst a massive group of consumers for cloud computing (Bauer and Adams, 2015). The major advantage is linked to not just the reduction of the number of servers required by the organization, but also the associated decreased amount of power, floor space, and cooling that the company consumes. The sharing of cloud computing infrastructure facilitates increased utilization of resources of a small amount of resources contrasted against committed IT resources for every individual and separate cloud company or consumer (Bauer and Adams, 2015).
Methodology
Research Approach and Design
The study will employ a qualitative research method. The research study will employ the inductive research approach. This approach begins with data gathering and, after that, examining the data to develop a theory to explain the research phenomenon. The objective of inductive research is not to examine causality. Instead, inductive research seeks to explore a given research phenomenon in depth. Taking into account the qualitative nature of the study, the case study design will be employed. The fundamental objective of a case study is to provide a comprehensive delineation of the experiences of a person, group, or company (Saunders, Lewis and Thornhill, 2015). In this case, the researcher will directly interact with the research participants to gain insight into their experiences with cloud computing and the specific benefits that the companies obtain with the cost.
Data Collection Sources & Selection Plan
From a qualitative research perspective, interviews were deemed to be the ideal research instrument. Following Saunders, Lewis, and Thornhill (2015), an interview is characteristically a face-to-face discussion between a researcher and a respondent involving the transference of information to the interviewer. Also, interviews are beneficial in following-up with individual respondents after questionnaires, with the main intent of conducting further investigation of their responses (Saunders, Lewis, and Thornhill, 2015). The utilization of interviews in a qualitative study is extensive and pervasive. Interviews are pivotal when the researcher requires direct interrelation with the study participants, and for carrying out comprehensive interrogation. In the present research study, structured interviews were deemed necessary. This facilitated well-ordered interview sessions. More significantly, taking into consideration the nature of the research study topic, it was beneficial to have a prearranged set of questions concentrating on specific themes such as “cloud computing,” “accounting organization,” and “cost-effectiveness.”
Interviews are categorized into three different kinds, including structured, unstructured, and semi-structured interviews. In this case, the study will capitalize on the structured format of interviews, which includes the researcher coming up with pre-determined questions. The rationale for formulating these interview questions is making certain that the researcher adheres to them during the interview sessions and avoid straying from the main research topic. This is also designed to guarantee consistency and reliability and also having orderly sessions. These interview questions are after that asked the different interviews. Due to the limitation in time, space, and resources, interviews will be conducted via telephone, e-mail, or Skype. This will ensure that the researcher can conduct interview sessions with all of the interviewees in the research timeline set. Each of the interview sessions will take up approximately 30 – 45 minutes (Saunders, Lewis, and Thornhill, 2015).
Proposed Interview Questions
The proposed interview questions include the following:
1. What type of cloud computing does the organization employ?
2. Why does the company prefer cloud computing over traditional computing services?
3. How does cloud computing aid the organization in terms of cost-effectiveness?
4. What are the various ways cloud computing enables cost savings for an accounting organization?
Sample Population
The sample size is 15 respondents from accounting organizations operating in the United States. The participants will be mainly drawn from people who work within different managerial levels in these organizations. The main reason for choosing this sample size was because of limited time to conduct the study, given that the researcher could not interview all participants occupying similar positions across the whole country. Furthermore, unlike a survey, interviews necessitate a small sample size (Saunders, Lewis, and Thornhill, 2015). Different factors were also considered in choosing the target population for this particular survey. People with managerial accounting experience were selected for the study since they are believed to possess knowledge about the use of cloud computing applications within the organization, reasons for selecting cloud computing, and the advantages experienced. It is also supposed that this population is appropriate for the study because it signifies the general opinions of the other practitioners within the same level for the reason that they are probably bound to face the same aspects in their business operations. Essentially, it is the management within a particular organization that is tasked with responsibilities that are related to issues such as investment, application, and implementation decisions linked to cloud computing.
Ethical Considerations
Research ethics is pivotal in promoting the fundamental aims of a research study, including knowledge, accuracy, honesty, and evading error. These ethics also support the values necessitated for combined work, for instance, mutual respect and impartiality. This is indispensable for the reason that scientific research is reliant on cooperation between the researcher and the study participants (Saunders, Lewis, and Thornhill, 2015). Several ethical considerations would be incorporated into the study. To begin with, the research study will encompass consenting from the research participants. The researcher will highlight ahead of time which data will be collected and how they are to be employed. The researcher will entirely explain to the participants the various facets of the research in a language that is easily understood. The clarifications rendered by the researcher will comprise of the nature of the research study, the potential role of the participants, the research study objective, as well as the way study outcomes will be published and utilized (Saunders, Lewis, and Thornhill, 2015). For that reason, any participation from the respondents will be entirely voluntary. The research participants will be provided insight into their option and freedom of partaking in the study and to withdraw their participation at any point they desire devoid of any sort of consequences (Saunders, Lewis, and Thornhill, 2015).
An additional ethical consideration integrated into the study is privacy and confidentiality. To begin with, the researcher will guarantee that no personal data and information from the research participants will be divulged. Any personally identifiable information of the respondents will not be included in the final report. Also, the researcher will guarantee the participants that all data and information obtained from the interview sessions would be exclusively and solely utilized for academic purposes. Imperatively, the research study will be undertaken in line with the pertinent rules on privacy and safeguarding of data. Any individually distinguishable details will not be exposed to any third party. Moreover, no financial incentives or bribes will be offered to any research participants to be involved (Queirós, Faria, & Almeida, 2017).
Data Analysis Plan & Rationale
Data analysis in a qualitative study is largely dissimilar to a quantitative study. Data analysis is the systematic organization and amalgamation of the research data and the testing of the research hypothesis by capitalizing on those data. What is more, it encompasses grouping, ordering, manipulating, as well as summarizing the data and delineating them in meaningful terms (Saunders, Lewis, and Thornhill, 2015). From a quantitative standpoint, the data analysis process will begin by transcribing the interview responses obtained from the interview sessions. Transcribing the responses obtained will be necessary for ensuring that specific codes are notable from all the data. The researcher will carry out coding by highlighting parts of the transcripts and coming up with codes to delineate their content. After that, the process encompasses determining patterns amongst them and generating themes (Maguire and Delahunt, 2017). The subsequent phase is thematic analysis. This will include prudent and comprehensive scrutiny of the data to determine perceptible themes that are common from all of the responses. These themes will, after that, be tied back to the existing literature carried out in the endeavor to answer the different research questions that were initially formulated to answer the research topic.
Contributions to Theory or Practice and their Significance
The findings for this research study will provide a significant contribution to both theory and practice. From a theoretical standpoint, the study findings will be a major addition to the literature associated with cloud computing and cost-effectiveness. The findings of this research will seek to fill the existing research gaps in the literature in addition to providing an updated finding on the research topic. From a practical standpoint, the study findings will significantly contribute to different players. First and foremost, the study’s findings will be largely beneficial to accounting organizations. In the present day competitive accounting world, progressively, more companies are seeking to achieve a competitive advantage through cost savings. This enables companies to become more successful in the market through greater profits. The findings of the study will demonstrate that through the espousal and execution of cloud computing services, accounting firms will be able to save on their outlays and accomplish increased efficacies. The findings will show accounting firms that by practically applying cloud computing, they will be able to save on costs in different ways, including greater levels of flexibility and scalability, and energy efficiencies. Also, the ability to attain remote accessibility of the files and folders ensures that the organizations can run their business smoothly at all times. Furthermore, it implies that through cloud computing, the organizations will cut back on hiring in-house IT personnel and also decrease the required investment in procuring data centers, servers, and also fewer costs for computers due to prolonged life spans.
Ethical Issues and Methods to Address
One of the ethical issues to address this study will be biasedness. Considering the interview participants will not be selected using the random sampling but rather the convenient sampling method, one of the fundamental concerns will be the biasedness linked to the study. A key approach to deal with this issue will be to send out the interview questions to different expert practitioners in the accounting industry to ensure they are relevant and encompass the industry as a whole. Secondly, an additional ethical issue will be to ensure that any information obtained from the interviewees are private and confidential and that no personal details will be divulged in the final research report.
Conclusion
In recent times, cloud computing has become a significant tool for companies and industries across the globe. This study purposes of examining the impact of cloud computing on cost-effectiveness for an accounting organization. The study will employ a qualitative research method and conduct interviews with managers from various accounting organizations in the United States. Based on the research conducted, it is expected that the research study will show that cloud computing facilitates cost-effectiveness for accounting organizations in different ways. First, there is the advantage of cost savings in terms of diminished investment for different IT components such as computers, servers, and data centers. Through cloud computing, all aspects are carried out online, which means that these physical investments within the premises are not required. Secondly, cloud computing facilitates remote accessibility. This means that the company executives can gain access to the files from anywhere at any time. This enables the company to cut costs from opening new premises because personnel can access such information and work from their devices. Third, there are decreased personnel costs. Since the cloud service providers are responsible for the maintenance and upgrade of the system, it implies that the company does not need to hire an in-house IT department. All of these aspects indicate that the implementation of cloud computing within an organization facilitates cost-effectiveness.




References
Bauer, E., & Adams, R. (2015). Reliability and availability of cloud computing. Hoboken: John Wiley & Sons.
Chang, W. Y., Abu-Amara, H., & Sanford, J. F. (2018). Transforming enterprise cloud services. New York: Springer Science & Business Media.
Chang, V. (Ed.). (2015). Delivery and adoption of cloud computing Services in Contemporary Organizations. IGI Global.
Hsien, W. F., Yang, C. C., & Hwang, M. S. (2016). A Survey of Public Auditing for Secure Data Storage in Cloud Computing. IJ Network Security, 18(1), 133-142.
Jamsa, K. (2016). Cloud computing. New York: Jones & Bartlett Publishers.
Maguire, M., & Delahunt, B. (2017). Doing a thematic analysis: A practical, step-by-step guide for learning and teaching scholars. AISHE-J: The All Ireland Journal of Teaching and Learning in Higher Education, 9(3).
Mehmood, R., Katib, S. S. I., & Chlamtac, I. (2020). Smart Infrastructure and Applications. New York: Springer International Publishing.
Prabhu, C. S. R. (2015). E-governance: concepts and case studies. New Delhi: PHI Learning Pvt. Ltd.
Queirós, A., Faria, D., & Almeida, F. (2017). Strengths and limitations of qualitative and quantitative research methods. European Journal of Education Studies.
Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud computing: implementation, management, and security. CRC press.
Sahana, S. (2019). Economics and Security Implications of Cloud Computing. Educreation Publishing.
Saunders, M., Lewis, P., and Thornhill, A. (2015). Research methods for business students. London: Pearson Education.
Surianarayanan, C., & Chelliah, P. R. (2019). Essentials of Cloud Computing: A Holistic Perspective. New Delhi: Springer Nature.
Xue, C. T. S., & Xin, F. T. W. (2016). Benefits and challenges of the adoption of cloud computing in business. International Journal on Cloud Computing: Services and Architecture, 6(6), 01-15.
Yarlikas, S., Bilgen, S. (2015). Cloud computing effectiveness assessment. International Journal of Cloud Computing and Services Science, 2(4): 226 - 248.