The Role Of Cloud Computing In Reducing The Costs Of IT Infrastructure "Case Study In Telecommunication Companies"

The Role Of Cloud Computing In Reducing The

Costs Of IT Infrastructure "Case study in

telecommunication companies"

Mohammad Ismail Suleiman Alawamreh

a

, Audeh Ahmad Suleiman Bani-Ahmad

b

Abstrac

t:

The aim of this study is to examine the role of cloud computing in reducing the costs of IT infrastructure in companies. In order to achieve the objective of the study, the researcher developed a questionnaire to collect the data and verify the validity of the questionnaire and its validity and then distributed it to the sample of the study which consisted of 100 questionnaires and 85 questionnaires were retrieved. The researcher then perform the appropriate statistical analysis and extract the results, the most important of which is the role of computerization. (In terms of software costs, availability of communications, human resources and equipment costs) in companies using cloud computing, as well as the role of cloud comp uting on IT infrastructure beyond The role of cloud computing on the IT infrastructure by the human resources in the sample companies and finally there is a significant role of cloud computing. In the sample study companies, there is a significant role of cloud computing on the IT infrastructure by its dimension. On IT infrastructure (equipment costs) in the sample companies. The study recommended the need to apply cloud computing in companies because of its significant role in reducing costs hardware, software, human resources and communications.

Keywords

:

cloud computing, IT, Telecommunication companies, IT infrastructure.

——————————



——————————

1 INTRODUCTION

In the period of the revolution of information technology, global organizations and other institutions, there is a deep competition in terms of the development and using technology, with all its potentials, in order to survive in this harsh market and to be able to have an efficient technological system that can cope with the work even if it's expensive and effort consuming. The companies realized the need for developing computer programs in order to save and operate the programs besides the maintenance software and developing the computers itself and this lead to what was called later the "cloud computing" which provides the user multi uses in terms of the internet. The " cloud computing" is a major step in the world of the technology and communication which represents the cornerstone for many industries and a major leap in the world of programs, and this concept is made up of two words "computing" because its related to the computers and the other word is "cloud" since it is a concept used to express the internet, the " cloud computing" is defined as " transferring the processing from the user device or computer to other terminals on the internet, saving the user files in order to communicate or use it in any place" and this is the value of cloud computing here. Based upon the past reasons calling for the importance of providing the cloud computing, its role in limiting the infrastructure cost of technology and the different researches made on Jordan and other countries, a need for making a study on this issue was necessary here, and in order to shed the lights on the variables and providing the needed infrastructure for technology here. Different researches were made here about the issue of the or the variables pivotal in decreasing the cost of the needed infrastructure for technology here. Upon that, this research was launched about the role of the cloud computing in lowering the needed infrastructure for technology here.

2

THE

PROBLEM

STATEMENT

AND

COMPONENTS

The problem could be stated upon the following question: The first question: is there a role for the cloud computing in lowering the costs of the information technology infrastructure for companies? Based upon the past question, we've got the following secondary questions: -is there a role for the cloud computing in lowering software costs for the companies?

- is there a role for the cloud computing in lowering communications costs for the companies?

- is there a role for the cloud computing in lowering human resources costs for the companies?

-is there a role for the cloud computing in lowering hardware costs for the companies?

3 THE STUDY IMPORTANCE

1- Does implementing the cloud computing in companies had an impact on lowering the information technology infrastructure?

2- Does implementing the cloud computing in companies had an impact in saving information , clients privacy and secrecy in a way that instills confidence in the clients?

4 THE STUDY OBJECTIVES

This study aims to prioritizing the cloud computing role in lowering the information technology infrastructure costs for companies, and the following secondary objectives:

 the cloud computing role in lowering the software costs for companies.

 the cloud computing role in lowering the communication costs for companies.

 the cloud computing role in lowering the human resources costs for companies.

5 THE STUDY HYPOTHESIS

The study proposed the following hypothesis:

H0:there are no statistical significant differences for the cloud computing in lowering the cost of the information technology infrastructure for companies.

H1: there are no statistical significant differences for the cloud computing in lowering costs of software for companies.

H2: there are no statistical significant differences for the cloud computing in lowering costs of communications for companies.

H3: there are no statistical significant differences for the cloud computing in lowering costs of human resources for companies.

H4: there are no statistical significant differences for the cloud computing in lowering costs of hardware for companies.

6 LITERATURE REVIEW

The cloud computing has appeared as a concept in the 1960s by the scientist john mourthy the prominent optic computer scientist based on the figures using the clouds figures on the demonstrations dealt with the internet here in a way that led to use it in many papers and institutions here (marinescu, 2017). The encyclopedia Britannica on line had defined the cloud computing as" the cloud computing that can operate applications and save data from the central computers, providing the clients or users through the internet in a way that saves costs (cloud computing, 2019). It can be also to have another definition as" a group of programs connected to each other in a way that can be centrally administered by the intranet or the internet known AS the cloud, so that they will be able to provide many software of information technology to the users, so that : time and place Costs can be saved, using the technology potentials besides providing the computer resources so that the saving potential will be tremendous here in a way that achieves the best revenues for this side (salim, 2016). (armbrust et al., 2010) had another definition for this concept as " it’s a group of applications provided as services, internet, software and hardware and systems here". Eriany & alerifi (2017) had addressed this concept as " providing services for the users through the internet in any place or any time without past knowledge in addition to looking on the major applications or software provided or new methods in the information technology related to the internet. The cloud computing is of many uses, so that it can improve the performance , working efficiently through decreasing the costs, ease in implementation, providing guaranteed service,… (wang & kunze, 2008). From the most prominent papers or studies dealt with this issue the following: (mehibs & hashim, 2018) known as "proposed network intrusion detection in cloud environment based on back propagation neural network" which aimed to shed the lights on the potentials of the cloud computing in detecting hacking, intrusion or any detected activity and resources misuse. Findings showed that the detection of intrusion was very high in comparison with the slowness of alerting or warning process. (buyya et al., 2018) titled " cloud computing and emerging IT platforms: vision, hype, and

reality for delivering computing as the 5th utility" which deakt with cloud computing and emerging IT platforms for delivering computing as water, electricity, gas, communication with high efficiency and the most modern technology in this side. (ginidin & khomoenk, 2018) titled "performance evaluation of cloud computing accounting for expenses in information security" that showed that the cloud computing impact on the accounting processes happened in the company besides the neatly valued expenditures through the use of such accounting cloud software in general, increasing the efficiency of the cloud computing applications will lead to providing more accurate evaluation for the accounting implemented here. (alzoubi, 2018) titled "the effect of cloud computing on the elements of accounting information system" which shed the lights on the cloud computing in terms of decreasing the enterprise effect for the plant and the shareholder out of the premise that will ease the ownership for the shares from any place, enhancing the operational performance and accounting specific transactions. (noor, 2016) titled " the use and technological acceptance of cloud computing in Saudi universities" that led to knowledge of the motivators and retards or obstacles for the cloud computing in the Saudi Arabia. The findings showed that the most important motivators from the students perspectives were: the internet connection and provision for students whereas the obstacles were permanent connection , dependency, recognition and privacy. (huang ,2016) titled" discussion on the application of cloud accounting in enterprise accounting information" which showed that cloud computing role in the accounting services provided for the administration or departments in decision making compared to the other accounting services. (Gupta at al. , 2013) titled " the usage and adoption of cloud computing by small and medium businesses" that showed the most important factors affecting the use of the cloud computing in medium businesses which were: easiness, convenience in use, security and privacy in using it besides cost savings but not quality or credibility. (Moulnar & scheter, 2010) titled " self hosting vs. cloud hosting accounting for security impact of hosting in the cloud" Which aimed to shed the light on the impact of information & data sharing from the self infrastructure of the business to the rented infrastructure in a way that saves costs and leveraging security. The method followed in this study is the descriptive and quantitative method here in order to test the hypothesis, results and the recommendations put forward from analyzing the cloud computing concept in its role in lowering the costs of the IT infrastructure.

7 POPULATION AND STUDY SAMPLE

for the study analysis, which represents 85% of the study sample, but the others discarded of wrong details or left.

8 METHODOLOGY

The questionnaire provided for the concept in analysis was developed on the basis that the cloud computing will save costs of the IT infrastructure for those companies, and based on the past literature related to this subject regarding the instrument items here.

aspect No. of questions Cronbach alpha

Cloud computing 11 89.9

Software costs 7 78.1

Communication costs 5 85

HR costs 9 75

Hardware costs 7 85.3

total 39 90.4

Based on the values of the Cronbach alpha, its recognized that all of the values were distributing between strong and weak values. Which means that the instrument- based on the experts views- is good.

The sample characteristics

As its indicated earlier, the sample respondents (85) of the companies randomly chosen workers of the companies using the cloud computing, and the following schedule shows sample respondents distribution according to the personal and job variables.

sample respondents distribution

variables category frequency percent experience Less than 3

yrs.

9 10.6

From 3-6 23 27.1

From 6-9 24 28.2

More than 9 yrs.

29 34.1

total 85 100

accounting 22 25.9

finance 3 3.5

major Accounting

systems

11 12.9

business 10 11.8

IT 25 29.4

MIS 8 9.4

other 6 7.1

total 85 100

manager 2 2.4

Dept. head 8 9.4

Job title accountant 62 72.9

other 13 15.3

total 85 100

9 THE RESULTS

This part of the study is related to the means ans standard deviations that reflects the respondents agreement about the items of the cloud computing (the independent variable) and the IT infrastructure items

(as the dependent variable) with all its scales (the software costs, communication provision, human resources and the hardware costs) in the communication companies. And the results showed the following:

Question

no. item M SD

1

The company administration uses the cloud computing to connect the IT with the services provided to the clients

4.31 .578

2

The company administration aims through using the cloud computing to increase the time management efficiency and operations speed

4.27 .521

3

The company administration aims through using the cloud computing to save electricity costs.

4.76 .454

4

The company administration aims through using the cloud computing to provide vast saving spaces for the clients in order to achieve the ultimate revenues.

4.36 .574

5

The company administration aims through using the cloud computing to save information and to make it provided for the clients all the time.

4.42 .605

6

The company administration aims through using the cloud computing to get a competitive advantage that will put the company in the lead.

4.13 .593

7

The company administration aims through using the cloud computing to achieve flexibility and to move easily between different services.

4.02 .672

8

The company administration aims through using the cloud computing to create a reverse relation between the

number of

computers used and cloud computing used.

4.19 .648

administration aims through using the cloud computing in using and testing the vital applications at the same time.

10

The company administration aims through using the cloud computing in achieving flexibility in achieving goals and its information.

3.19 .526

11

The company administration aims through using the cloud computing to share the information resources through cloud computing.

3.89 .673

The dependent variable results: the IT

infrastructure:

At the following schedule, the results of the means and the standards deviation, extreme values and the degrees of agreement of the dependent variable in the study which is the IT infrastructure with all its dimensions:( software costs, communication provision, human resources and the hardware costs).

rank No. dimension M SD

2 1 software costs 4.1748 .39394

4 2 communication

provision 4.0353 .57667

3 3 , human

resources 4.0732 .5216

1 4 the hardware

costs 4.1597 .34882

The IT

infrastructure for the communication companies in Jordan

4.1107 .32827

The results of the software costs scale or dimension:

At the following schedule, the results of the means and the standards deviation, extreme values and the degrees of agreement of the software costs dimension.

The descriptive analysis of the software costs dimension

No. item M SD

1

the company

administration aims through using the cloud computing in limiting the costs of consulting experts in software protection and hacking.

3.48 .924

2

the company

administration aims through using the cloud computing in limiting the costs of developing and upgrading software.

4.09 .811

3 the company

administration aims 4.09 .648

through using the cloud computing to move between different bundles according to its benefits and needs.

4

the company

administration aims through using the cloud computing to keep up to date with the applications and new software in the company.

4.02 .831

5

the company

administration aims through using the cloud computing in limiting the costs of software licensing by direct provider contracting.

4.36 .633

6

the company

administration aims through using the cloud computing to achieve the ultimate use of the software.

4.04 .640

7

the company

administration aims through using the cloud computing to provide spare copies of the data and programs , leveraging security and limit data loss.

4.41 .623

Results of the communication access or provision: At the following schedule, the results of the means and the standards deviation, extreme values and the degrees of agreement of the communication access or provision dimension.

The descriptive analysis of the communication access or provision dimension:

rank No. item M SD

1 1

the company administration aims through using the cloud computing in limiting the costs of processing data in terms of the memory, storage and computers connection.

4.18 .601

2 2

the company administration aims through using the cloud computing to provide the communication service by the service provider.

4.14 .71

5 3

the company administration aims through using the cloud computing in managing communication independent of the IT DEPT. of the company.

3.75 .987

4 4

the company administration aims through using the cloud computing in providing info. To manage financial issues in terms of saving capital and costs.

4.04 .778

3 5

the company administration aims through using the cloud computing overcoming the problems of IT.

Results of the human resources scale:

At the following schedule, the results of the means and the standards deviation, extreme values and the degrees of agreement of the human resources scale.

The descriptive analysis of human resources:

rank No. item M SD

4 1

the company administration aims through using the cloud computing in limiting capital costs through service payment

4.01 .957

5 2

the company administration aims through using the cloud computing in limiting the operational costs

4.01 .715

9 3

the company administration aims through using the cloud computing in redistributing the IT workers

3.78 1.028

3 4

the company administration aims through using the cloud computing in limiting the costs of training the employees.

4.19 .919

7 5

the company administration aims through using the cloud computing in limiting the need for the servers personnel.

3.98 .951

8 6

the company administration aims through using the cloud computing in limiting the employees faults in work and time waste.

3.98 .895

6 7

the company administration aims through using the cloud computing in limiting the number of networks employees.

4.01 .852

8 1

the company administration aims through using the cloud computing in limiting the number of routine works

4.35 .882

2 9

the company administration aims through using the cloud computing in relating cost with service and saving costs.

4.35 .935

Human resources 4.07 .522 Results of the hardware costs scale:

At the following schedule, the results of the means and the standards deviation, extreme values and the degrees of agreement of the hardware costs scale.

rank No. item M SD

2 1

the company administration aims through using the cloud computing in reducing the costs of the space used by the servers.

4.59 .695

3 2

the company administration aims through using the cloud computing in reducing the costs of the time used by the servers in operations

4.32 .602

4 3

the company administration aims through using the cloud computing in reducing the costs of the time used by the servers in using the net

4.05 .653

5 4

the company administration aims through using the cloud computing in reducing the risks

3.95 .858

of using computers and servers.

6 5

the company administration aims through using the cloud computing in reducing the costs of the consultants.

3.91 .811

7 6

the company administration aims through using the cloud computing in sharing the information resources in the computing service.

3.68 .82

1 7

the company administration aims through using the cloud computing in reducing the costs of maintenance.

4.62 .556

Hardware costs 4.1597 .3488 Testing hypothesis:

First: results of the null hypothesis:

Based on the regression analysis results it can be said that the alternative hypothesis is accepted and states "there are statistical significant differences at the interval (σ=.05) for the cloud computing on reducing the costs of the IT infrastructure for the firms" so that the researcher believes that reducing the costs of the IT infrastructure by the cloud computing in terms of saving the costs regarding the HR, software, hardware, communication and the space used by the firms included in the sample.

The results of the applying the simple regression equation of the null hypothesis.

The dependent Var.

The independent var.

B T sig

The IT

infrastructure fixed 3.122 6.187 .*** Cloud

computing .235 1.962 .043**

R2 50.4%

sig .043**

F 11.54

SECOND: results of the first alternative hypothesis: Based on the regression analysis results it can be said that the alternative hypothesis is accepted and states "there are statistical significant differences at the interval (σ=.05) for the cloud computing on reducing the costs of the IT infrastructure for the firms regarding the (software costs) used by the firms included in the sample and accepting the alternative hypothesis.

The results of the applying the simple regression equation of the first alternative hypothesis.

The dependent Var.

The independent var.

B T sig

The IT

infrastructure fixed 1.973 3.455 .001*** Cloud

computing .522 3.865 .000**

R2 35%

sig .000**

The results of the applying the simple regression

equation of the second alternative hypothesis:

Based on the regression analysis results it can be said that the alternative hypothesis is accepted and states "there are statistical significant differences at the interval (σ=.05) for the cloud computing on reducing the costs of the IT infrastructure for the firms regarding the (communication costs) used by the firms included in the sample and accepting the alternative hypothesis.

The dependent Var.

The independent var.

B T sig

The IT

infrastructure fixed 3.43 3.788 .000*** Cloud

computing .144 .67 .000** R2 53.8%

sig .000**

F 13.54

Based on the regression analysis results it can be said that the alternative hypothesis is accepted and states "there are statistical significant differences at the interval (σ=.05) for the cloud computing on reducing the costs of the IT infrastructure for the firms regarding the (HR costs) used by the firms included in the sample and accepting the alternative hypothesis.

The results of the applying the simple regression

equation of the third alternative hypothesis:

The dependent Var.

The independent var.

B T sig

The IT

infrastructure fixed 3.573 4.63 .000*** Cloud

computing .119 .612 .000** R2 44.9%

sig .000**

F 15.54

Based on the regression analysis results it can be said that the alternative hypothesis is accepted and states "there are statistical significant differences at the interval (σ=.05) for the cloud computing on reducing the costs of the IT infrastructure for the firms regarding the (hardware costs) used by the firms included in the sample and accepting the alternative hypothesis.

The dependent Var.

The independe nt var.

b T SI

G The IT

infrastruct ure

fixed 3.511 6.774 .00 0** * Cloud

computing .154 1.194 .00 0** *

R2 74.2%

sig .000***

F 16.35

The results and recommendations

10

ONCLUSIONS

 that there is a significant effect for the cloud computing on the IT infrastructure on the (software costs ) scale of the sample companies.

 that there is a significant effect for the cloud computing on the IT infrastructure on the (communication savings) for the sample companies, so the researcher thinks that there is a little impact of using the cloud computing with regard to the communication savings.

 that there is a significant effect for the cloud computing on the IT infrastructure on the (HR) scale of the study for the sample companies.

 that there is a significant effect for the cloud computing on the IT infrastructure on the (hardware costs) of the sample companies.

11 RECOMMENDATIONS:

The study recommends of making more studies about the savings achieved by using the cloud computing but in other companies here.

 the researcher recommends to make or launch other studies about the break-even point regarding the costs and benefits of using cloud computing.

 the researcher thinks that implementing cloud computing will have great results for the companies regarding the scales of the study and other issues.

REFERENCES:

[1]. lAZoubile oe fo {ce fE. h22.)7 M2 AM . ، Mii 7poE Mo hA.i.o7c M2 l))M o7poE no2Mnit7pMo dc7.ie mAMatA M notA M2 ototE.i.o7 lo.

h cpo.cc s.c.tn)E e

[2]. lnian c7r oer JM,r ler mnp22p7Er ser Mc.iEr le ber at76r se .er aMoapoc pr ler eee i stEtnptr oe fo zce laMb. 7E. )AM .c~ t h.n .A.d bp.a M2 )AM .

)Mii 7poEe foo}e opb.ncp7d M2 tAp2Mnopt t7 h.n .A.d

[3]. h ddtr ser r.Mr e er g.o EMitAr er hnMa.nEr er i hnto.p)r ne foo}ce AM . )Mii 7poE to. .i.nEpoE nf iAt72Mnic~ gpcpMor Edi.r to. n.tAp7d 2Mn

..Apb.npoE )Mii 7po E tc 7E. y7E 7pAp7de J 7 n.

m.o.nt7pMo )Mii 7.n cdc7.icr fy zcr y}}

-z -z e

[4]. AM . )Mii 7poEe fo }ce s.7np.b.. 2nMi /E77ic~//aaaeanp7toop)te)Mi

[5]. m etnt7pr be foonce htcp) h)MoMi.7np)ce op7.. 7t7.c opAp7tnd l)t..idr l.c7 eMpo7

e

[6]. ster e se fo ,ce i rem i7tr eer ..7Etntitor l fE. ctE. to. t.Mi7pMo M2 )AM . )Mii 7poE ad citAA to. i..p i a cpo.cc.ce no7.not7pMotA M notA M2 no2Mnit7pMo ototE.i.o7r ,, ycr |z

-|{n e

[7]. m i7tr eer ..7Etntitor ler i ster e se fo ,ce fE. ctE. to. t.Mi7pMo M2 )AM . )Mii 7poE ad

no7.not7pMotA ecitAA to. i..p i a cpo.cc.c -|z r yc,, r M notA M2 no2Mnit7pMo ototE.i.o7

e|{n

[8]. . toEr te fo zce bpc) ccpMo Mo 7E. liiAp)t7pMo M2 AM . l))M o7poE po ho7.ninpc. l))M o7poE no2Mnit7p6t7pMoe no fo. no7.not7pMotA Mo2.n.o). Mo h)MoMip)cr M)pt A )p.o).r ln7cr h. )t7pMo to.

ototE.i.o7 hoEpo..npoE h lhoh fo zcr e aApcE.. ad l7Ato7pc en.cc iie ,z

[9]. aEMiMo.o Mr ler i mpo.por e fo zr linpAce e.n2Mnito). .btA t7pMo M2 )AM . )Mii 7poE t))M o7poE 2Mn .,i.oc.c Mo po2Mnit7pMo c.) np7de no enM). ..poEc M2 7E. |7E Mo2.n.o). M2 gi.o

nooMbt7pMoc lccM)pt7pMo Js f iie oo

oy e

Js f gd e

[10]. otnpo.c) r be e fo {ce AM . )Mii 7poE~ 7E.Mnd to. int)7p).e oMnEto at 2itoo

e

[11]. o.Epacr e oer i .tcEpir e .e fo |ce enMiMc.. t.7aMn no7n cpMo b.7.)7pMo dc7.i no AM .

hobpnMoi.o7 htc.. Mo ht) enMitEt7pMo t. ntA t.7aMn e M notA M2 opb.ncp7d M2 htadAMor fz cr f

-no e

[12]. oMAotnr ber i )E.)E7.nr e he fo or o.ce .A2 .Mc7poE bce AM . .Mc7poE~ l))M o7poE 2Mn 7E.

.) np7d niit)7 M2 .Mc7poE po 7E. AM .e no lhn e

[13]. tMMnr fe .e fo zce ctE. to. 7.)EoMAMEd

t)).i7to). M2 )AM . )Mii 7poE po t .p lntapto e{z-zy r }c o no7 M27a hoE p7c liiAr opb.ncp7p.ce

[14]. ltoEr Aer ftMr er a o6.r oer tc7.AAtoMcr le er

anti.nr ber i atnAr le foo|r .i7.ia.nce Mii 7poE~ htnAd ..2pop7pMo to. )p.o7p2p) )AM . ) .pEE e.n2Mnito). Mii 7poE to. .,i.np.o).e no Mii op)t7pMocr foo|e .e ,o|e o7E nhhh

n... e |,o-iie |fyc no7.not7pMotA Mo2.n.o). Mo