CLOUD COMPUTING AND E-COMMERCE

PRESENTED BYSTEFFI MICHELLE WANNIANG

LL.M (BUSINESS LAW)I.D: 596.

AIMThe aim of this paper is to study as to how

Cloud Computing which is a new Technology and a High Tech product has brought about the prospects and the Development in the E-Commerce Industry.

OBJECTIVESTo study the importance of cloud computing in

the E-Commerce world. To examine the advantages and dis-advantages

of the Cloud Computing in E-Commerce business.

To study the legal issues involve in Cloud Computing.

To study the different features and characteristics in E-Commerce.

To analyse the improved efficiency of Cloud Computing in this computer modern world.

RESEARCH QUESTIONSHow Far has Cloud Computing been an easy

access to the E-Commerce and business in the IT Industry?

What are the legal issues involved in Cloud Computing?

What are the issues and challenges faced by Business people in Cloud Computing? Are there any disadvantages in this new revolution technology?

Whether Cloud Computing has been a strong influence upon E-Commerce?

HYPOTHESIS It is Hypothesized by the researcher that

Cloud Computing has improve efficiency of maximum utilization of this system which is also cost effective , reliable and easy access of data over the internet from any devices. It has brought about a new revolution and a radical change in business model of the IT Industry.

INTRODUCTION Cloud Computing is a new technology, it is a

high tech product and has broad prospects for development.

It is a network that involves a large no. of computers connected through the internet.

The term “cloud Computing” is mostly used to sell hosted services in the sense of application service provisioning that run client server software at a remote location.

Cloud providers typically use “pay as you go” model.

It is type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications.

These resources includes networks, servers, storage and software applications.

The third party company maintains these applications, servers, or network and the users can access them on the internet without having to download them or store in their computer.

FEATURES OF CLOUD COMPUTING. Centralized infrastructure in certain location with

lower costs Improve efficiency of unutilized system for

maximum utilization. Reliability is improved as multiple redundant sites

are used which makes well designed cloud computing

Apps can be easily purchased and billed by consumption

Easy access over the Internet by any device Easy maintenance because they do not need to be

installed on each users’ computer .

CLOUD COMPUTING CHARACTERISTICSThe salient characteristics of cloud

computing based on the definitions provided by the National Institute of Standards and Terminology (NIST) are outlined below:

On Demand self-serviceBroad Network access Resource Pooling Rapid Elasticity Measured service

WORKING ON CLOUD COMPUTING It eliminates the headache of managing the hardware and

software because that’s the responsibility of the third an experienced vendor like salesforce.com.

Only Pay for what we need, upgrades are automatic and scaling up or down is easy

Cloud based apps can be up and running in days or weeks and they cost less.

Cloud computing customers don’t generally own the physical infrastructure on which the applications run and store the data.

In a cloud computing system, there's a significant workload shift.

Cloud application providers strive to give the same or better service and performance as if the software programs were installed locally on end-user computers.

CLOUD COMPUTING WITH E-COMMERCE. To handle the conflict between enterprises' e-

commerce activities and the shortage of resources, enterprises have, by the application of advanced cloud computing service model, solved the problems of the shortage of funds, man power and technology which were required in the activities of e- commerce. 

One of the main growth areas for cloud computing that is still far from mature is the adoption of e-commerce from small companies.

INFLUENCE OF CLOUD COMPUTING UPON E-COMMERCE. cloud computing enables E-commerce enterprises to

rent rather than purchase hardware and software. By virtue of the cloud computing platform an E-

commerce enterprise can choose and rent IT products and services based on its demand so as to establish the technical architecture.

Cloud computing can provide a economic dependable E-commerce system, SaaS is a kind of software which generally provides this service.

cloud computing can provide good economic efficiency for the application of business enterprise E-Commerce.

CLOUD COMPUTING DELIEVRY MODEL (LAYERS OF CLOUD COMPUTING SERVICE PROVIDERS).

1. Infrastructure as a Service (IaaS): Infrastructure as a Service (IaaS) the capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. Infrastructure as a Service is a single layer cloud where cloud computing vendor’s dedicated resources are only shared with contracted clients at pay-per-use basis.

Platform as a Service (PaaS) : PaaS can be defined as a computing platform that allows the creation of web applications quickly and easily and without the complexity of buying and maintaining the software and infrastructure underneath it. PaaS is especially useful in any situation where multiple developers will be working on a development project or where other external parties need to interact with the development process.

Software as a Service (SaaS): Software as a Service (SaaS) is defined as:“…software that is deployed over the internet… With SaaS, a provider licenses an application to customers either as a service on demand, through a subscription, in a “pay-as-you-go” model, or (increasingly) at no charge when there is opportunity to generate revenue from streams other than the user, such as from advertisement or user list sales.”SaaS is a rapidly growing market as indicated in recent reports that predict ongoing double digit growth. E.g; Google Apps

CLOUD COMPUTING IMPACTS ON E-COMMERCE INDUSTRY.Cloud-based e-commerce applications' lower costs and

faster deployments enable IT and business leaders to evaluate new opportunities without large upfront investments.

The wide range of cloud-based e-commerce applications and integration platforms offers IT leader’s great flexibility when choosing deployment models and suppliers.

Cloud computing eliminates the need of purchasing hardware and software and enables e-commerce companies to rent the applications and hardware.

E-commerce companies can start with the basic requirements and upgrade their computing resources as their customer base grows with time.

ADVANTAGES OF CLOUD COMPUTING ON E-COMMERCE

It’s VirtualIt can be secured easily It’s flexible and scalable It can be affordableIt can help increase profit. It can help organizations do business 7 days

a week and 24 hours a day.It increases flexibility and ease of shopping

for the customer.

DISADVANTAGES OF CLOUD COMPUTING ON E –COMMERCECostSecurityInternet Connectivity technical Issues

LEGAL ISSUES IN CLOUD COMPUTING Cloud Computing arising out of exporting customers data

abroad.Cloud Services Provider has to contend with the Legal

Systems under different Jurisdictions with not so much of visibility as to where the Data resides and how it is routed to the End User while passing through different Legal Jurisdictions.

The legal issues differ from those arising from conventional outsourcing or hosting. A traditional data hosting or server hire contract may have involved use of someone else’s storage or computer.

With Cloud computing, however, the location(s) of your data may be unclear, possibly even unidentifiable and it is also much easier to set up such an arrangement.

CONCLUSION AND SUGGESTIONSCloud computing has become a significant technology

emerging trend, and many experts, researchers and academicians expect that cloud computing will reshape information technology (IT) sector and the IT marketplace in world.

. With the cloud computing technology, users use a wide variety of devices, including PCs, Laptops, Smart Phones, and PDAs to access different kinds of utility programs, storage, and application development platforms over the Internet, via services offered by cloud computing providers. An advantage of the cloud computing technology includes cost savings, high availability, and easy scalability.

Cloud Computing will eliminate the commercial and technical fragmentation that has thus far proven to be a barrier to successful collaboration between application providers and operators on a global scale.

Lawmakers, perhaps through a Proper subcommittee or an agency, should be tasked with evaluating which types of user data are the most sensitive and thus most entitled to protection.

There should be laws that should be implemented for such risk that involves through the online electronics. Security should be there and strong laws be made against any person or company infringing any acts or activities taken under this procedure.