How secure is the cloud? and Amazon vs Walmart which giant will dominant?
1. Case Study
On
1. How secure is the cloud?
2. Amazon Vs Walmart: which Giant will dominate E-Commerce?
Submitted To:
Air Commodore M Abdus Samad Azad, BSP ndu, Psc PhD
B. Sc. (Hons) M.Sc. in Applied Physics & Electronic Engineering
MBA
PhD (Information System)
Professor (Adjunct) & Ex-Treasurer
University of Professionals (BUP)
Submitted By:
Mohammad Mydul Islam
Roll: 2023031053
ID no: 20011378
Date of Submission
16th
May, 2020
2. Case Study
No 1: How secure is the cloud?
Case Study Question & Answer
1. What is the biggest risk of cloud computing?
Answer: The biggest risk of cloud computing is that it is highly distributed. Claud
applications and application mash-ups reside in virtual libraries in large remote data centres
and server farms that supply business, services and data management for multiple corporate
clients.
2. What is the nature of cloud computing?
Answer: The dispersed nature of cloud computing makes it difficult to track unauthorized
activity. Virtually all cloud providers use encryption, such as secure socket Layers, to secure
the data they handle while the data are being transmitted. But if the data are stored on devices
that also store other companies’ data, it’s important to ensure these stored data are encrypted
as well.
3. Is there any option to prove the data security?
Answer: If your data is totally secure in the cloud, you may not able to prove it. Some cloud
providers don’t meet current compliance requirements regarding security and some of those
providers, such as Amazon, have asserted that they don’t intend to meet those and won’t
allow companies auditors on-site.
4. What security and control problems are described in this case?
Answer: There is a distinct lack of transparency with cloud computing providers. One of the
biggest risks of cloud computing is that it is highly distributed. Cloud applications and
application mash-ups reside in virtual libraries in large remote data centres and server farms
that supply business services and data management for multiple corporate clients. Cloud
computing providers often distribute work to data centres around the globe. Users may not
know precisely where their data are being hosted nor where the data are stored. Because
cloud computing is dispersed it’s difficult to track unauthorized activity. If data are stored on
devices that also store other companies’ data, it’s important to ensure these stored data are
encrypted as well.
3. 5. What people, organization, and technology factors contribute to these problems?
Answers: The factors are given below:
People: Cloud computing users and cloud providers may fall short in fully understanding the
security implications involved in the newest trend of distributed computing. Users are not
investigating the providers enough and making sure the providers are meeting all the
necessary security requirements. Providers are not being transparent enough in clearly
specifying what security services they provide, how they protect data, and how they intend to
meet corporate regulatory requirements.
Organization: Cloud providers must use a fault-tolerant computer system which minimizes or
eliminates downtime altogether by ensuring continuous availability of computing services.
Cloud users need to pay attention to their own security practices, especially access controls.
Cloud users should contract with a cloud vendor that is a public company, which is required
by law to disclose how it manages information.
Technology: Strong encryption technology is absolutely necessary for cloud computing.
Network traffic can use secure sockets layer and secure hypertext transfer protocols. Two
encryption methods that can be used for secure sessions between Internet client browser
software and servers are symmetric key encryption and public key encryption. Data stored on
cloud servers can be protected using firewalls, intrusion detection systems, antivirus and
antispyware software, and unified threat management systems.
6. How secure is cloud computing? Explain your answer
Answer: Depending on which cloud provider is used, it may be difficult to fully understand
how secure cloud computing is. Salesforce.com, as a public company, is required by law to
disclose how it manages information. It has strict processes and guidelines for managing its
data centres. Another option is to use a cloud provider that gives subscribers the option to
choose where their cloud computing work takes place. Other companies like Amazon EC2
and Microsoft Azure are not liable for data losses or fines or other legal penalties when
companies use their services. Both vendors offer guidance on how to use their cloud
platforms securely, and they may still be able to protect data better than some companies’
home-grown facilities. Some cloud providers don’t meet current compliance requirements
regarding security, and some of those providers, such as Amazon, have asserted that they
don’t intend to meet those rules and won’t allow compliance auditors on-site. Some
regulations call for proof that systems are securely managed, which may require confirmation
from an independent audit. Large providers are unlikely to allow another company’s auditors
to inspect their data Centres.
4. 7. If you were in charge of your company’s information systems department, what issues
would you want to clarify with prospective vendors?
Answer: Issues cloud users should clarify with prospective vendors include:
a) Regardless of where data are stored or transferred, are users protected at a level that
meets their corporate requirements?
b) Does the cloud provider store and process data in specific jurisdictions according to the
privacy rules of those jurisdictions?
c) How does the cloud provider segregate corporate data from other companies?
d) Ask for proof that encryption mechanisms are sound.
e) How will the cloud provider respond if a disaster strikes, will the provider be able to
completely restore data and how long will it take?
f) Will the cloud provider submit to external audits and security certifications?
8. Would you entrust your corporate systems to a cloud computing provider? Why or why
not?
Answer: Answers should the issues raised in Question 7. As enticing as cloud computing may
be because it lowers TCO costs of IT infrastructures, some companies may need to stay away
from it altogether.
5. No 2: Amazon Vs Walmart: which Giant will dominate E-Commerce?
Case Study Question & Answer
1. What concepts in the chapter are illustrated in this case?
Answer: E – Commerce business model.
2. Analyse Amazon and Walmart.com using the value chain and competitive forces models?
Answer: Supply chain is a network of organizations and business processes for procuring raw
materials, transforming these materials into intermediate and finished products and
distributing the finished products to customers. It links suppliers, manufacturing plants,
distribution centres, retail outlets and customers to supply goods and services from source
through the supply chain in both directions.
Supply chain management system automate the flow of information among members of the
supply chain so they can use it to make better decisions about when and how much to
purchase, produce or ship. More accurate information from supply chain management
systems reduces uncertainty and the impact of the bullwhip effect. Supply chain management
software includes software for supply chain planning and for supply chains by providing the
connectivity for organizations in different countries to share supply chain information.
Improved communication among supply chain members also facilitates efficient customer
response and movement toward a demand-driven model.
In attaining competitive advantage Porter’s five competitive forces can be used to determine
industry profitability. These forces include threat of new entrances within the market, market
power of suppliers, substitutions of products and services, bargaining power of the buyers
and industry competition. The internet has changed the nature of doing business, so has the
competition that surrounds it. By supplying a wide range of product to the consumer,
amazon.com share a market space with the likes of Wal-Mart. Rivalries among existing firms
are strong as the industry is growing and the products that are being sold to the consumer are
not so differentiated.
3. What are the management, organization and technology factors that have contributed to the
success of both Wal-Mart and Amazon?
Answer: Both of them using e-commerce is a fascinating combination of business models and
new information technologies. The three major electronic commerce categories are business
to consumer (B2C) e commerce, business to business (B2B) e commerce and consumer to
consumer (C2C). E-commerce can be viewed as the conduct of business commercial
communications and management by using Internet technologies and through electronic
6. methods, such as electronic data interchange (EDI) and automated data-collection systems. It
may also involve the electronic transfer of information between businesses (EDI). E-business,
on the other hand, has come to refer to the automation of an organization’s internal business
processes using Internet and browser technologies. In using the Internet, many organizations
have looked to add more value to the tangible products they sell by providing additional
‘information-based’ services. These can include online support, order tracking, order history,
etc. Many of these initiatives focus on deepening the relationship with customers and
suppliers. Others have moved their trading platform either partially or entirely onto the
Internet. From the website, customers can search for a specific book, topic or author, or they
can browse their way through the book catalogue and then complete the sale by entering their
credit card information. Orders are processed immediately and books in stock, generally
bestsellers, are shipped the same day. Customers are contacted by email when their order has
been dispatched. All contact with the company is done either through their World Wide
Website or by email. The company has also branched out into electronic auctions. It has also
pioneered technologies such as customer profiling and ‘1-click’ shopping.
4. Compare Wal-Mart’s and Amazon’s e-commerce business models. Which is stronger?
Explain your answer
Answer: Both sites are online merchants that have been made by an identical model, where
the menu of product categories on the left page margin. The last category in Walmart, they
called Halloween shop which means a category where there are seasonal products. In the
middle of the page at the top of both sites have search engines for products that can be
searched by all departments or for each department separately. In the middle of the page both
have special offers, best-selling products, and amazon.com has the products you are currently
viewing by other users. Shop Walmart is simpler and easier to reach the required product,
while at amazon.com and search for products on the home page have a lot of things that
detract from the required product. The product categories are more or less similar but
amazon.com has a special category for the book which is understandable because it is the first
business was the main job. I think that amazon still as the stronger online retailer; they
always do continuing new innovative. The profiling technology has enabled Amazon to
recommend books based on previous purchasing history and what other customers who have
bought similar books are also reading. Even today, the company strives to maintain their
founding commitment to customer satisfaction and the delivery of an educational and
inspiring shopping experience.
5. Where would you prefer to make your internet purchases? Amazon or Walmart.com? Why
Answer: Amazon, the product more complete than Walmart and it has special category for
the book as the main job.