International Journal of Computer and Information Technology (ISSN: 2279 – 0764) Volume 04 – Issue 01, January 2015 Opportunities of Adopting Cloud Computing in Palestinian Industries AlaaEddin Almabhouh Assistant Professor, Head of MIS Department University of Palestine Gaza, Palestine Email: a.mabhouh [AT] up.edu.ps Abstract—Cloud computing is a term that refers to resources • Access to a huge range of applications without and computer systems available on demand through the having to download or install anything network, which can provide a number of computer integrated • services without being restricted by local resources.This Users can avoid expenditure on hardware and research attempts to determine the opportunities and software; only using what they need strategies of cloud computing adoption in Palestine. A focus • Makes the hardware and software easily group has been conducted in order to accomplish the research maintainable. objectives. Data were collected from 12 Palestinian firms. Accepted methodology was used to explore the current stage of • Applications can be accessed from any computer, cloud computing adoption in Palestinian firms and to identify anywhere in the world the most important barriers hindering the adoption. The main obstacles that were identified as performing a significance role • Consumption is billed as a utility with minimal in Palestinian firms’ adoption of cloud computing services upfront costs include: lack of top management awareness, insufficient • financial resources and budgets, shortage of cloud computing Companies can share resources in one place experts and professionals, inadequate network bandwidth, • Scalability via on-demand resources weakness of IT companies capabilities, sensitivity of data, legal and regulatory issues, and compatibility with the existing IT Market Info Group (2011) acknowledges that the global systems. In actuality, these results should present a basis for market for cloud computing technologies is going to grow by the Palestinian IT managers in terms of formulating a concrete 23.4% over the next five years, with an aggregate of over plans for cloud computing adoption. $300 billion over that period.As perIDC, cloud services are expected to grow at a compound annual growth rate of 27% Keywords cloud computing; cloud computingadoption;deployment and reach $42billion by 2012 and $55 billion by 2014 models; development models;Palestinian Industries respectively; spending on non-cloud IT services is expected to grow at 5% [7].A recent study conducted by market- 1. INTRODUCTION research firm IDC also predicts a $100 billion spending Cloud computing is a model for enabling convenient, on- volume in the cloud service market in 2016[8]. Furthermore, demand network access to a shared pool of configurable cloud computing in just three years has risen to the top of the computing resources (e.g. servers, networks, storage, IT strategic technologies, and has been announced as the top services, and applications) that can be rapidly provisioned technology to watch in the years 2010-2013[9, 10]. and released with minimal management effort or service Currently, millions of people are already being used provider interaction[1]. In addition, cloud computing is a cloud computing in various manifestations including email technology of computing in which internet and central services, office productivity applications and numerous remote servers are provided “as a service” to subscription-based software as a service (SaaS) services [11]. users[2].According to [3, 4], cloud computing is the term In addition, several companies around the world have started given to the use of multiple server computers via a digital to move their data and ICT operations into the network as if they were one computer. The “Cloud” itself is a cloud[12]. Some of the potential benefits from cloud virtualization of resources which the end user has on-demand computing can actually help companiesreduce high access to it. These resources can be provided with minimal expenditures on hardware, software and IT maintenanceas management or service provider interaction[5]. They also well as provides businesses with a centralized, virtual data argue that cloud computing offers the end user resources center that is accessible at any time and any location [13, without the requirement of having knowledge of the systems 14]. Lina and Chenb[15] point out that the promised benefits that deliver it. Moreover, cloud computing can provide the of adopting cloud computing can be very appealing for user and business with a far greater range of services and companies, which offers increased return on investment and applicationsincluding[1, 6]: maxims competitive advantage. www.ijcit.com 103 International Journal of Computer and Information Technology (ISSN: 2279 – 0764) Volume 04 – Issue 01, January 2015 Despite this proliferation of cloud computing resources allowing also for an optimum resource utilization. This pool and interest in such resources, this technology is not being of resources is typically exploited by a pay-per-use model in adopted with its full potential in Palestine. Furthermore, very which guarantees are offered by the infrastructure provider few studies have been carried out on how businesses are by means of customized SLAs” [20]. adopting and diffusing cloud computing technology in emerging economies, such as Palestine. This research is an According to Gupta, et al. [12], cloud computing is the effort to fill this knowledge gap by contributingto identify next stage in evolution of the Internet, which is derived from the current stage of awareness and understanding toward the idea of businesses and users being able to access cloud computing technology and to determine the strategies applications and services from anywhere in the world on and the plans of adopting this technology in Palestine. This demand. Moreover, cloud computing provides the means study couldalso provide practical benefits to information through which everything, from computing power to technology practitioners in the successful adoption and computing infrastructure, applications, business processes to implementation of cloud computing in Palestinian personal collaboration can be delivered to users as a services. organizations. Cloud computing is offered in different deployment and delivery models. 2. LITERATURE REVIEW C. Cloud Deployment Models A. The Current State of ICT in Palestine Many researchers [5, 6, 21-23] agreed that there are four Palestinian industries quickly respond to technological models for cloud computing service deployment. These offering. A study conducted by Wihaidi[16] indicates that deployment models may have different derivatives which the Palestinian private and public sectors as well as may address different specific needs or situations [21]. consumers has strengths in the adoption of proven ICT According to them, the basic deployment models are public products and services supported by experienced human cloud, private cloud, community cloud, and hybrid cloud. resource and advanced and accessible telecom infrastructure. 1) Public cloud: This cloud infrastructure is available to Despite these encouraging characteristics, the Palestinian a large industry group and is owned by a vendor selling organizations faces serious challenges that need to be cloud services. In this deployment model, public cloud addressed such as: international perceptions of the applications, storage, and other resources are made available technology adoption, ICT market access, travel impediments, to the general public by a service provider. These services access to equity based finance and investment, relatively are free or offered on a pay-per-use model of payment [19]. high telecom cost to do business and inadequate legal and 2) Private cloud: This cloud infrastructure is managed regulatory framework in support of technology industry. Moreover, there are few threats that cannot be overlooked by the organization or a third party and is operated solely for including the ongoing political conflict, commoditization of the needs of the organization. A private cloud is a particular IT products, lack of policies and government investment in model of cloud computing that involves a distinct and the sector and a growing ICT brain drain [17]. secure cloud based environment in which only the specified client can operate [24]. In spite of these challenges, Palestinian ICT sector is on 3) Community cloud: This cloud infrastructure is shared the verge of developing into an innovative high tech industry and has the potential to become the engine of the Palestinian by more than one organization and support a specific economy [18]. community that has common considerations. This may be managed by the organizations or a third party [19]. B. An overview of cloud computing 4) Hybrid cloud: This cloud infrastructure is composed In recent years, the advent of cloud computing has of two or more types of clouds listed above that remain excited an interest for the various organizations, institutions unique entities but are connected via standardized and users. This is a result of the new economic model for the technology that affords portability of data and applications IT department that cloud computing promises. The model [19]. promises a shift from an organization required to invest heavily for limited IT resources that are internally managed, D. Cloud Service/Delivery Models to a model where the organization can buy or rent resources Regardless of the deployment