NIST Definition of Cloud Computing

Question: Discuss about the NIST Definition of Cloud Computing. Answer: Introduction Every day more and more companies are aligning to the cloud-based accounting system. From connected gadgets to internet-based education programs, individuals from all over the globe are utilizing the cloud as a medium to connect with consumers and make their own business measures more efficient. In short, it has become a trend and offices are now using it to gain specific advantages (Millard, 2013). Furthermore, even small businesses are attaining benefit from the cloud when it comes to financing management. Although there are various reasons to go for the cloud, yet few businesses opt to host accounting data the traditional-fashioned way. In short, it depends upon the business requirement to vouch for a specific system (Olsen, 2012). However, since accounting is a very delicate aspect of business, many accounting professionals, and entrepreneurs often shy away from experimenting traditional accounting methods as they rely on trusted and tested solutions. Therefore, the major relianc e is the trusted method and solutions (Rouse, 2013). Cloud-based accounting vs. Traditional-based accounting Cloud-based Accounting Traditional-based Accounting Cloud accounting software utilizes the cloud in order to store accounting data, making financial details available to employees and owners anywhere in the presence of an internet connection (Rouse, 2013). With traditional accounting software, a business has one dedicated hard-drive wherein accounting software is installed and financial information is recorded to make it accessible to employees and owners. Unlike cloud accounting, this does not require internet connectivity. This software tends to be a more affordable one because upfront costs involved are usually lesser than that of the traditional accounting system and the hardware that is needed to run in (Rouse, 2013). Managing the finances through a traditional accounting system requires some expenses because it does demand a local infrastructure that makes way for a chunk of investment to be wasted. Furthermore, even the maintenance cost of hardware increases the costing requirements in this method. With this software, a user can add many numbers of users and operate with them in the real-time in order to accelerate the activities. With just a few clicks, user permissions can be controlled and one can define which files are meant for whom (Hu, 2015). Since accounting is not a one-man arena, it requires detailing of all financial details taking place in the company. Moreover, multiple users have to come into action to keep accounting process updated and error-free. However, unlike cloud accounting, the traditional accounting only offers massive restrictions related to user-accessibility and location. Potential limitations The biggest limitation of cloud-based accounting system is that the accounting data is being shared with a third party and they can utilize such data for their self-business interests because the data storage is completely controlled by the providers (Peter Timothy, 2011). In addition, the data can also be stored in several countries wherein the government can audit or review such data if needed. Secondly, the cloud-based accounting system might not support every application possessed by the user. In simple words, some of the users requirements might not be efficiently available in the cloud accounting software (Millard, 2013). Hence, there are restrictions in the applications that make cloud-based accounting a very risky step. Last, but not the least, many of the cloud accounting software fails to offer an appropriate facility to backup the data that is stored in the users computer or laptop. Therefore, when a user might change the software, he or she might also lose the entire dat a that is already entered into with the prior cloud-based accounting software. Therefore, since cloud accounting software fails to offer confidentiality of data, data backup, and pursues many restrictions, the decision to move towards cloud accounting must be made after considering such potential risks, because at the end of the day, financial records are the most important for any organization (Mell, 2011). Moreover, once the system is changed to cloud-based it is difficult to retreat and use another concept. In this way, it creates an image of vendor lock in that adds to the potential limitation. Conclusion The size of the business does not matter when it comes to cloud-base accounting. With every segment of business being performed in the cloud, several different size businesses can gain advantage from using cloud-based accounting services. In simple words, eligibility for cloud benefits relies much more on the users computing requirements, applications used by the business, and workforce habits, than the business size. Nevertheless, businesses that can benefit the most are accountancy firms, data security firms, and global corporations. With cloud accounting, clients in accounting firms can upload significant financial data that is accessible to an accountant as per his requirements, and clients can even download copies of digital ledgers, tax papers from data stored in the cloud (O'Brien Marakas, 2009). Similarly, every office can stay in touch with others in order to share information through cloud accounting in global corporations. Even data security firms can move their customers files continuously by cloud computing, thereby making it difficult to be hacked. References O'Brien, J Marakas, G. (2009). Management Information Systems. McGraw-Hill Olsen, E. (2012). Strategic Planning Kit for Dummies. John Wiley Sons. Millard, C. (2013). Cloud Computing Law. Oxford University Press Mell, P. (2011). The NIST Definition of Cloud Computing. Accessed March 18, 2017 from https://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf Rouse, M. (2013).What is a multi-cloud strategy? Accessed March 18, 2017 from https://searchcloudapplications.techtarget.com/definition/multi-cloud-strategy Peter, M Timothy G. (2011).The NIST Definition of Cloud Computing. National Institute of Standards and Technology: U.S. Department of Commerce Hu, T.H. (2015).A Prehistory of the Cloud. MIT Press.