Research Report

for

The Impact of Cloud

Computing on Business
Operations and Information
Security

Instructor: Dr. Adeel Ansari

Prepared by
Muhammad Jamshed Khan (1912120)
Izhan Alam Khan (1912115)
Kashan Ahmed (1912121)
Akshay Kumar (1912258)

Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology

The Impact of cloud computing in business operations and Information Security Page ii

Table of Contents

Table of Contents
Abstract.. .........................................................................................................................................1
1. Introduction ..............................................................................................................................1
2. Problem Statement...................................................................................................................1
3. Application Domain .................................................................................................................2
4. Problem Area ...........................................................................................................................2
5. Development Done ...................................................................................................................2
6. Literature review .....................................................................................................................1
7. Solution Statement ...................................................................................................................2
8. Objectives..................................................................................................................................2
9. Research Questions ..................................................................................................................2
10. Hypothesis.................................................................................................................................2
11. Scope..........................................................................................................................................2
12. Methodology .............................................................................................................................3
13. Limitations ................................................................................................................................4
14. Assumptions..............................................................................................................................4
15. Gantt chart ...............................................................................................................................1
The Impact of cloud computing in business operations and Information Security
become more prevalent. The benefits of cloud
computing, such as scalability, cost-effectiveness,
and accessibility, come with risks, including the
Abstract potential for security breaches and loss of data,
Cloud computing is a popular technology that which can significantly impact business operations.
enables businesses to access computing resources Additionally, businesses face challenges in
flexibly and cost-effectively. However, its adoption managing cloud computing resources and
comes with risks, including the potential for integrating them into their existing IT infrastructure.
security breaches and data loss, which can The lack of knowledge and expertise in cloud
computing and the absence of standardization in the
significantly impact business operations. This industry pose additional challenges for businesses in
research paper examines the impact of cloud ensuring the security of their data and maintaining
computing on business operations and information the continuity of their operations.
security. The study includes a literature review and
a qualitative research design, including semi- Therefore, this research paper aims to explore the
structured interviews with business professionals impact of cloud computing on business operations
and information security. The research will examine
and cloud computing experts. The research the benefits and risks associated with cloud
identifies the benefits and risks of cloud computing computing adoption and management, identify the
adoption and management, the challenges and challenges and opportunities, and explore strategies
opportunities, and strategies and best practices for and best practices for ensuring the security of data
ensuring data security and business continuity in the and maintaining the continuity of business
cloud. The findings indicate that cloud computing operations in the cloud.
offers several benefits, but businesses face
The paper is organized as follows: Section 2
challenges in managing cloud computing resources provides a literature review of cloud computing and
and integrating them into their IT infrastructure. its impact on business operations and information
The research contributes to the development of best security. Section 3 presents the research
practices for ensuring the security of data and methodology, including the research design, data
maintaining the continuity of business operations in collection, and analysis. Section 4 discusses the
the cloud. findings of the research, including the benefits and
risks of cloud computing, the challenges and
opportunities, and the strategies and best practices
Keywords: Cloud computing, business operations, for ensuring the security of data and maintaining the
information security, benefits, risks, challenges, continuity of business operations in the cloud.
opportunities, strategies, best practices.. Section 5 concludes the paper with a summary of
the research findings and their implications for
businesses.

1. Introduction
2. Problem Statement
Cloud computing has revolutionized the way
businesses access computing resources, providing a The adoption of cloud computing has become a
flexible, scalable, and cost-effective model that necessity for businesses to remain competitive and
enables businesses to focus on their core meet customer demands. However, the benefits of
competencies. With cloud computing, businesses cloud computing come with risks, including the
can access a wide range of computing services, potential for security breaches and loss of data,
including infrastructure, platforms, and which can significantly impact business operations.
applications, without the need for significant Moreover, businesses face challenges in managing
upfront investments in hardware and software. This cloud computing resources and integrating them
has made cloud computing a popular choice for into their existing IT infrastructure. The lack of
businesses of all sizes, from startups to knowledge and expertise in cloud computing and
multinational corporations. the absence of standardization in the industry pose
additional challenges for businesses in ensuring the
However, as more and more businesses adopt cloud security of their data and maintaining the continuity
computing, concerns regarding its impact on of their operations. Therefore, it is essential to
business operations and information security have understand the impact of cloud computing on
The Impact of cloud computing in business operations and Information Security
business operations and information security, measures to mitigate these risks by implementing
including the benefits and risks, to develop effective robust security measures and ensuring that their
strategies for its adoption and management. employees are adequately trained to use cloud
computing services securely.

3. Application Domain 5. Development Done

Cloud computing has revolutionized the way • Hybrid and multi-cloud architectures:
businesses access computing resources, providing The research on the impact of cloud
them with a flexible, scalable, and cost-effective computing on business operations and
model. With cloud computing, businesses can easily information security has continued to evolve
access a wide range of computing services, with recent developments.
including infrastructure, platforms, and • One recent development is the increasing
applications, without having to make significant adoption of multi-cloud.
upfront investments. This has made cloud • Containerization and microservices: One
computing a popular choice for businesses of all recent development is the increasing
sizes, from startups to multinational corporations. adoption of multi-cloud environments,
By using cloud computing services, businesses can which provide businesses with greater
reduce their IT infrastructure costs, scale their flexibility and cost-effectiveness.
computing resources up or down as needed, and • Edge computing: Another development is
focus on their core competencies without having to the emergence of cloud security posture
worry about managing complex IT infrastructure. management (CSPM) tools, which help
Overall, cloud computing has transformed the way businesses monitor and manage their cloud
businesses operate, making computing resources security posture.
more accessible, affordable, and convenient. • AI and machine learning: The use of
artificial intelligence (AI) and machine
learning (ML) in cloud security has also
emerged as a recent trend, helping
4. Problem Area businesses detect and respond to security
threats in real time.
As cloud computing continues to gain popularity • Additionally, the development of cloud-
among businesses, concerns have arisen regarding native security solutions that are purpose-
its impact on business operations and information built for cloud environments has gained
security. While cloud computing offers several momentum in recent years, providing
benefits such as flexibility and cost-effectiveness, it businesses with greater security and control
also comes with inherent risks. Security breaches over their cloud resources.
and data loss can have a significant impact on
business operations, making it crucial for businesses
to address these risks proactively. Managing cloud
computing resources and integrating them into
existing IT infrastructure pose additional challenges
for businesses. The lack of knowledge and expertise
in cloud computing and the absence of
standardization in the industry make it challenging
for businesses to ensure the security of their data
and maintain the continuity of their operations.
Therefore, businesses must take appropriate
The Impact of cloud computing in business operations and Information Security

6. Literature review

Project title Year Methodology Limitation

The limitations of this study may also

point to areas for further research. First
This study defines the cloud service
off, we only used self-reporting data to
capability of cloud computing
measure all the components in this
vendor, which means the vendor's
work because we were unable to
ability to meet the needs of
Investigating the Impact collect any objective measurements to
enterprises migrating to the cloud,
of Cloud Computing complete our data set. We are also
2021 develops the scale to measure it,
Vendor on the Adoption prevented from delving into the
and empirically tests its impact on
of Cloud Computing. specific underlying mechanisms that
the adoption of cloud computing in
underlie the outcomes of this study due
order to investigate how the supply-
to the survey methodology used. Using
side of cloud computing influences
archived data sets or in-depth case
its adoption.
studies, future studies may build on
this research or confirm the results.

This study of cloud computing The definition of cloud computing is a

Adoption of Cloud Computing and topic of some discussion. Lack of
Knowledge Engineering and Their consensus on terminologies, for
The Impact of Knowledge
Effects on Business-Driven IT example, has long been a confusing
Engineering and Cloud
2018 monitoring the activities of a issue in the cloud because different
Computing Adoption on
multiplex collection of ubiquitous specialists offer varying definitions.
Business Driven IT
services, often known as the Through the Internet, cloud computing
Internet of Things, and developing will offer a variety of
new virtual environments. services to its users.

The main justification for most

The framework combines the businesses switching to a cloud
A Knowledge
Analytical Hierarchical Process, environment is the perceived cost
Management Based Cloud
Case Based Reasoning, and the effectiveness of cloud computing.
Computing Adoption 2016
Pugh Decision Framework to When considering whether to move to
Decision Making
enable decision making at the the cloud, there are numerous things to
Framework
Strategic and Tactical levels. consider as well as certain
hazards involved.
The Impact of cloud computing in business operations and Information Security

In this study, cloud computing has

Although there may be benefits to
been credited with significantly
cloud computing, this does not
reducing organisational
preclude the existence of
inefficiencies and boosting
disadvantages. The main worry now
BENEFITS AND corporate growth, which has helped
with clouds and cloud attacks is
CHALLENGES OF THE firms maintain their
security. Businesses must be on guard
ADOPTION OF 2016 competitiveness. In general, cloud
against attacks on their cloud storage.
CLOUD COMPUTING computing makes it possible for
In this study, the advantages and
IN BUSINESS businesses to run smoothly. Cloud
disadvantages of cloud computing for
computing reduces unnecessary
businesses will be discussed. This
procedural, administrative,
study also offers several strategies to
hardware, and software
get around the problems.
expenditures for businesses.

In order to gather data for this

study, a 5-point Likert scale
Although the study makes a number of
questionnaire is used as a
intriguing discoveries, the data need to
measurement tool. Taiwanese
be evaluated with care.
businesses that have embraced
There are numerous restrictions. First
cloud computing were the subjects.
off, the data comes from Taiwanese
The study's central thesis is that the
enterprises, the majority of which are
The Perceived Business dependent variable—the benefit of
SEMs. This particular feature of the
Benefit of Cloud 2016 cloud computing—may vary
local economy may have an impact on
Computing. depending on the independent
how cloud computing is used there.
variable, the type of cloud
Second, the individuals freely choose
computing service, and that the
whether or not to respond to the
relationship between those two
questionnaires after being randomly
variables is influenced by two
selected from four Taiwanese company
moderating variables, the area of
directories.
adoption in the value
chain and firm size.

in managing cloud computing resources and

integrating them into their existing IT infrastructure.
The lack of knowledge and expertise in cloud
computing and the absence of standardization in the
7. Solution Statement industry can make it difficult for businesses to
ensure the security of their data and maintain
Cloud computing adoption has become a necessity business continuity. To effectively adopt and
for businesses to remain competitive and meet manage cloud computing, businesses must
customer demands. However, as with any new understand its impact on their operations and
technology, cloud computing also comes with risks information security. By developing effective
that businesses must manage. Security breaches and strategies for cloud computing adoption and
data loss are among the significant risks associated management, businesses can mitigate risks, improve
with cloud computing that can negatively impact their operations, and stay ahead of the competition.
business operations. Businesses also face challenges
The Impact of cloud computing in business operations and Information Security
2. What are the challenges faced by businesses
8. Objectives in terms of information security when
migrating to the cloud?
1st Objective: Identifying the Factors/Parameters 3. How has the adoption of cloud computing
Factors or parameters for a research paper include impacted the cost structure of businesses,
the research question, hypothesis, variables, and and what are the potential cost savings?
population/sample being studied. 4. What are the disaster recovery capabilities
• What are the benefits and challenges of of cloud service providers, and how have
adopting cloud computing for businesses, they improved business continuity in the
and how do they impact business operations event of a disaster?
and information security? 5. How has cloud computing impacted the
• What are the key factors that influence the accessibility of data and applications?
adoption of cloud computing by businesses,
and how do they impact business operations
and information security?
• What are the best practices for securing 10. Hypothesis
cloud-based systems, and how can
organizations ensure that their data is Null Hypothesis
protected in a cloud environment? There is no significant impact of cloud computing
• What are the legal and regulatory issues on business operations and information security. In
associated with cloud computing, and how other words, the use of cloud computing technology
can organizations ensure compliance while has no effect on the efficiency, effectiveness, or
leveraging the benefits of the cloud? security of business operations. Any observed
• How can organizations manage vendor risk differences in these areas can be attributed to
when outsourcing their IT infrastructure to chance or other factors unrelated to cloud
cloud service providers? computing.

Alternative Hypothesis
2nd Objective: Current Limitations of Previous Organizations that adopt cloud computing
Work experience a significant improvement in the
performance of their business operations compared
(Refer to Literature Review) to those that do not adopt cloud computing. This
3rd Objective: Design Development Assessment improvement may include increased efficiency,
• Identify a clear and focused research productivity, and profitability in various aspects of
question. the business, such as data management,
• Conduct a comprehensive literature review collaboration, and scalability. The extent of the
on cloud computing. improvement may depend on the specific
• Develop a research methodology including implementation and usage of cloud computing in
sample population, data collection, analysis, the organization.
and ethical considerations.
• Collect and rigorously analyze data using
chosen methods.
• Interpret findings and draw conclusions 11. Scope
relevant to identified problems and
solutions. Business Operations:
• Write a well-organized academic paper • Changes in productivity, collaboration,
following a standard format. remote work, and accessibility of data and
• Evaluate the paper for clarity, accuracy, and applications
completeness, and seek feedback from peers • Implications for compliance and regulatory
or colleagues. requirements and impact on the job market
Information Security:
• Challenges related to data privacy, security
breaches, and potential risks related to
9. Research Questions public cloud services
• Benefits of improved security measures
1. How has the adoption of cloud computing provided by cloud service providers and the
impacted the efficiency and productivity of role of disaster recovery in business
businesses? continuity
The Impact of cloud computing in business operations and Information Security
IT Infrastructure: 10. Write Research Paper: Write a paper
• Changes in cost structures, scalability, and including intro, lit review, methodology,
flexibility of businesses results, discussion, and conclusion sections,
• Role of cloud service providers in managing and cite all sources used.
infrastructure and potential implications for
legacy systems. Phase 2
Problems:

1. Security and Privacy Concerns: Cloud

12. Methodology computing can create security and privacy
concerns due to potential data breaches,
Phase 1 hacking, and cyber attacks.
2. Data Loss: Cloud providers can experience
outages or hardware failures that may result
in data loss, making data backup crucial.
3. Vendor Lock-In: Switching cloud providers
may be difficult and costly, which can create
vendor lock-in issues.
4. Performance and Reliability: Cloud service
quality can vary, with some experiencing
downtime, slow performance, or limited
availability.
5. Cost: The total cost of ownership should be
considered, including subscription fees, data
transfer costs, and maintenance costs.
6. Regulatory Compliance: Compliance with
regulatory requirements is crucial, and
organizations must ensure that cloud
providers meet regulatory standards.
7. Lack of Control: With cloud computing,
organizations may have limited control over
the underlying infrastructure and
1. Research Topic: Choose a specific area of environment.
cloud computing to study (security,
performance, cost optimization) Solutions:
2. Literature Review: Review existing 1. Security and Privacy: Encryption, access
research to identify gaps and opportunities control, and data masking can be
for investigation implemented to address security and privacy
3. Formulate Research Questions: Develop concerns.
questions or hypotheses that address the 2. Resource Allocation and Management:
identified gaps/issues Workload balancing, resource provisioning,
4. Design Research Methodology: Determine and load balancing techniques can optimize
the methodology (experimental, survey, case resource utilization and improve system
study, simulation) performance.
5. Collect Data: Collect and analyze data from 3. Cost Optimization: Cost models,
relevant sources (cloud providers, research optimization algorithms, and techniques
participants, datasets) such as server consolidation and usage-
6. Analyze Data: Analyze collected data using based pricing can help reduce cloud
statistical or relevant methods to draw computing costs.
conclusions 4. Service Availability and Reliability:
7. Interpret Results: Interpret results, Redundancy, replication, and failover
including significant findings and insights mechanisms can be used to ensure cloud
8. Draw Conclusions: Draw conclusions service availability and prevent data loss.
based on research results and discuss 5. Vendor Lock-In: Standardization techniques
implications for cloud computing and interoperability standards can reduce
9. Make Recommendations: Provide vendor lock-in and improve cloud service
recommendations for future research or portability.
practical applications of findings
The Impact of cloud computing in business operations and Information Security
6. Best Practices: Monitoring and performance consequences for businesses if a cloud
tuning, regular backups and disaster provider does not comply with these
recovery planning, and compliance with regulations.
industry regulations are best practices that
ensure cloud computing is secure, reliable,
and cost-effective.
14. Assumptions
Phase 3
1. Conduct a comprehensive assessment before • Flexibility and Scalability: Cloud
adopting cloud computing. computing is assumed to offer greater
2. Conduct empirical studies to understand flexibility and scalability, allowing
factors influencing adoption. businesses to quickly and easily scale up or
3. Adopt comprehensive security strategies, down their computing resources as needed,
including data encryption and monitoring. without investing in costly hardware and
4. Consult legal and regulatory experts to software.
ensure compliance. • Cost-effectiveness: Cloud computing is
5. Conduct due diligence on cloud service assumed to be more cost-effective compared
providers and negotiate clear contractual to traditional IT infrastructures, as
terms. businesses can pay for only the resources
6. Establish procedures for monitoring and they use, rather than investing in and
verifying compliance. maintaining their own infrastructure.
7. Have contingency plans in place in case of • Improved Efficiency: Cloud computing is
vendor failures or disruptions. assumed to improve business efficiency by
enabling faster deployment of new
applications and services, as well as
reducing the time and resources required for
13. Limitations maintenance and support.
• Data Security and Privacy: Cloud
• Dependence on Internet Connectivity: computing is assumed to offer greater data
Cloud computing requires a stable and fast security and privacy compared to traditional
internet connection, which can cause IT infrastructures, as cloud providers
disruptions in business operations if the typically have more resources and expertise
internet connection is slow or unreliable. to invest in security measures.
• Data Privacy and Security: Storing data • Dependence on Internet Connectivity:
and applications on remote servers owned Cloud computing is assumed to require a
and managed by third-party vendors can stable and fast internet connection. If the
raise concerns about data privacy and internet connection is slow or unreliable, it
security if the cloud provider does not have can cause disruptions in business operations
adequate security measures in place. and make it difficult for employees to access
• Limited Control over Infrastructure: critical data and applications.
Businesses have limited control over the • Compliance with Regulations: Cloud
infrastructure and software stack that their computing is assumed to enable businesses
applications run on, making it difficult to to comply with data privacy and security
customize the environment to meet specific regulations more easily, by providing tools
business needs. and services that meet regulatory
• Cost: Cloud computing can be expensive, requirements.
especially if a business requires a lot of
storage or processing power. Additionally,
unexpected costs for data transfer, support,
and maintenance may arise.
• Compliance: Strict regulations around data
privacy and security in certain industries and
regions can lead to legal and financial
The Impact of cloud computing in business operations and Information Security

15. Gantt chart