This paper examines how cloud computing has transformed IT management strategies, using Ericsson's adoption of Amazon Web Services (AWS) as a central case study. It outlines the key benefits Ericsson realized — including cost reduction, automated software updates, expanded remote access, and on-demand availability — and surveys the main AWS product offerings, such as Amazon EC2 and Amazon S3. The paper also addresses persistent security concerns, including data protection and IT governance challenges, that continue to prevent a majority of businesses from fully embracing cloud infrastructure. The paper concludes that despite these concerns, cloud computing offers unparalleled scalability and cost efficiency for both consumers and businesses.
As cloud computing grew increasingly popular, many major businesses seized the opportunity to integrate cloud strategies and services into their IT management frameworks. Ericsson was one such company and has realized major benefits in terms of cost reduction, automatic software updates, increased remote access capabilities, and on-demand availability.
Since its adoption of AWS services provided by Amazon, Ericsson has seen vast benefits. Several cloud services offered by Amazon have helped increase the company's scalability with relatively little initial investment (Amazon, 2012). According to the research, Ericsson has benefited from cloud services that "lead to efficiency gains, operational flexibility, and substantial cost savings" (Ericsson, 2012, p. 10).
Cost reductions stem from the ability to eliminate expensive hardware and in-house servers that would otherwise be required to handle large volumes of data. Rather than purchasing costly hardware upfront, Ericsson has been able to enjoy a more flexible, per-use cost model, which helps enormously by "reducing their total cost of ownership" (Ericsson, 2012, p. 10). Moreover, the automated software updates included in the AWS strategy have increased the efficiency of keeping software current while reducing the cost of training personnel and maintaining active update cycles.
The expansion of remote access has also enabled Ericsson and its teams to grow within a global market. Clients, employees, and sales teams can access critical information from anywhere, effectively expanding their capabilities and competitive advantage. Finally, because Ericsson can now leverage on-demand services, "they are essentially intermediating brokers, enabling users to switch cloud vendors without worrying about network-related details" (Ericsson, 2012, p. 8). This has significantly increased both the ease of use and the overall range of services available.
Amazon, which partnered with Ericsson to achieve these results, offers a range of products that operate within a cloud environment. Compared to other service providers, Amazon Web Services (AWS) is "the most integrated public cloud provider in the RightScale Cloud Management Platform" (Amazon, 2012). Amazon currently leads the market in delivering scalability, manageability, and adaptability, and its services function across a wide variety of contexts, including both consumer and commercial applications.
First, there is Amazon Elastic Compute Cloud (Amazon EC2), in which "the business runs its own applications on the Amazon infrastructure" (Amazon, 2012). This allows businesses to retain full control, enhancing manageability while benefiting from the quick and reliable scalability of Amazon's infrastructure. Second, there is Amazon Simple Storage Service (Amazon S3), which "offers businesses cloud storage capacity without the processing power" (Amazon, 2012). The scalability of S3 is particularly beneficial for developers, though some manageability is sacrificed relative to EC2. Both services, however, are highly adaptable to individual business and consumer needs and can be integrated into nearly any network or network application.
RightScale also provides significant value to businesses seeking scalable and manageable solutions on a web-based platform. It allows users to take full advantage of Amazon's robust network without needing to build or maintain their own infrastructure.
"Data protection and IT governance fears limit adoption"
There is also concern about what transitioning to a cloud system would mean for a company's IT governance. With the entire structure of an IT department potentially being reorganized around a cloud service implementation, many fear that existing IT teams will not integrate smoothly with the new strategy. Targeted training can help employees stay current, while streamlining IT strategies to align with cloud computing systems can help alleviate these concerns.
Unfortunately, it is precisely these concerns that have reportedly kept 68% of businesses from investing in a cloud infrastructure (Tyson, 2012).
Despite posing some security challenges, cloud computing is a major innovative strategy that allows both consumers and businesses to benefit from powerful, highly capable networks without having to build and maintain costly infrastructure. Cloud computing through major providers like Amazon delivers a level of scalability and reliability that is virtually unmatched unless an organization has invested in a massive, enterprise-grade private network — and cloud computing achieves this at a fraction of the cost. Working with cloud infrastructure empowers users on a broader scale than has ever been seen before.
Amazon Web Services. (2012). AWS case study: Ericsson. AWS Products and Solutions. Retrieved August 23, 2012, from http://aws.amazon.com/solutions/case-studies/ericsson/
Ericsson. (2012). The telecom cloud opportunity: How telecom operators can leverage their unique advantages in the emerging cloud market. Ericsson Discussion Paper. Retrieved August 23, 2012, from
Tyson, B. (2010). Amazon Web Services (AWS): Learn why Amazon leads cloud computing. Helium. Retrieved August 23, 2012, from
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