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Cloud Computing Issues in Retail Fashion Business

Issues with Introduction and Increased Use of Cloud Computing Services


The organisation chosen for analysis is a fictitious one that operates in the fashion retail business, is based in the UK and is called Magneta. The target market is young people between the ages of 18 and 34, and the company sells mainly casual yet trendy female outfits. Magneta has brick and mortar stores in various parts of the UK, Europe and North America. It also sells clothes online and has built a reputation for fast response to consumer needs. Magneta employs a total of 530 employees worldwide, and this has been possible due to its franchise-like model.

Systems in the company are predominantly legacy-based and operate in silos. Each of the legacy systems is responsible for various parts of the business’s operations. Some of them take care of the inventory, while others focus on shipping. Alternatively, other systems handle terminals while, others work on sales data. A lot of this data is not transformed into useful information, and most times, employees feel overwhelmed by the speed, volume and even variability of the data as it is always changing. The company feels that it currently has too many servers in each of its stores, as most of them are not run in remote server farms.

Cloud Computing Issues in Retail Fashion Business

Current Status of Cloud Computing

Cloud computing is only used for periphery services at this fashion retailer because employees have a relatively good understanding of browser-based software, but the infrastructure required to make the transition has not been installed. Sometimes, employees will use Dropbox to manage and send files, but this is often not powered by the organisation.

The company also thinks of cloud computing as a means of storing its information rather than an opportunity to expand its possibilities. Whenever there is a power blackout or some form of data disaster, the company is assured of accessing its data safely through any internet connection. This acts as a form of disaster relief for the company as it makes it immune from physical attacks on its information (Balagopalan, 2010).

There are a number of reasons and drawbacks for Magneta to handle its data from the full use of cloud computing. First, the company is concerned about the issue of security and compliance with information security standards. The retailer has many sensitive information including information about the customer’s credit card or their history of payment. If a cloud provider does not meet the same standards as the retailer, transactions can not be secured.

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