--- title: "Cloud technology for small business" subject: "Information System" chapter: 8 key: "semester_8/information_system:cloud-for-small-business" source: https://www.bctengineer.com/q/semester_8/information_system/cloud-for-small-business site: BCT Engineering --- # Cloud technology for small business Information System · Chapter 8: Scalable and Emerging Information System techniques - Asked in: 2072 Magh, 3+5 marks - Video: [Cloud Computing for Business Explained](https://www.youtube.com/watch?v=hOv1d0jf3aA) — Virtual-Q - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/cloud-for-small-business - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-8 ## Question What do you mean by cloud computing? Illustrate what type of cloud technologies would you recommend for a small business firm with high level of accuracy and security required for business transactions? ## Short answer Cloud computing delivers on-demand IT resources over the internet. For a small business requiring high accuracy and security, adopt SaaS for key applications and a virtual private cloud for sensitive data, ensuring ACID compliance, encryption, multi-factor authentication, and PCI-DSS certified provider. ## Answer #### Cloud computing **Cloud computing** is the on-demand delivery of computing services (servers, storage, databases, software) over the Internet, on a pay-as-you-go basis, without the user owning the infrastructure. Services are provided as IaaS, PaaS or SaaS, deployed as public, private, hybrid or community clouds. #### Recommendation for a small business needing accuracy and security **Assumption:** a small trading firm (10 to 20 staff) handling sales, accounting and online payments, with limited IT staff and budget. - **Service model: SaaS** for accounting, billing, inventory and CRM (for example a reputable cloud accounting package). It needs no server management, is updated by the provider, and has low upfront cost. - **Deployment model: a hybrid approach, mostly a trusted public cloud with a private/virtual private section.** - Core transaction data and customer records are stored in a **virtual private cloud** or a dedicated private area with strong isolation. - Non-sensitive services (website, e-mail, collaboration) run on the public cloud. - A fully private cloud would be too costly for a small firm. - **Optionally IaaS/PaaS** for a custom order system, using managed databases. #### Features to look for (accuracy and security) 1. **Data accuracy and integrity:** ACID-compliant relational database, validation, audit trail, regular backups and point-in-time recovery. 2. **Encryption** of data at rest and in transit (TLS), and key management. 3. **Access control:** multi-factor authentication, role-based access. 4. **Compliance:** PCI-DSS for card payments, ISO 27001 certified provider. 5. **High availability:** SLA of 99.9% or more, replication across zones and disaster recovery. 6. **Monitoring and logs** for fraud detection. 7. **Data location and portability** to avoid lock-in. 8. **Support and local presence,** and clear exit terms. This gives the firm security and reliability comparable to a large company, without owning a data centre. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What is cloud computing? A. On-demand delivery of computing services over the Internet on a pay-as-you-go basis without owning infrastructure B. Buying and owning a private data centre C. A local network of PCs D. Software installed on one computer Answer: A. Cloud computing delivers servers, storage, databases and software on demand over the Internet. (Key point: Definition) 2. Which service model is recommended for a small firm's accounting, billing and inventory? A. SaaS B. IaaS only C. Building its own private cloud D. No cloud Answer: A. SaaS needs no server management, is updated by the provider and has low upfront cost. (Key point: Recommended service model) 3. Which deployment approach is recommended and why? A. Fully public, since security is unimportant B. Hybrid: sensitive transaction data in a virtual private area, non-sensitive services on public cloud; full private is too costly C. Fully private cloud owned by the firm D. Community cloud shared with competitors Answer: B. Hybrid balances isolation of core data with low cost. (Key point: Deployment model) 4. Which feature best supports accuracy and integrity of transactions? A. ACID-compliant relational database with audit trail and backups B. Eventual-consistency cache only C. Public file sharing D. No logging Answer: A. ACID guarantees, validation, audit trails and point-in-time recovery protect transaction accuracy. (Key point: Accuracy features) ## Related in Information System - [Cloud computing and its types](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Acloud-technologies-types) — Information System, chapter 8, asked 2× - [Cloud types and data management](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Atypes-cloud-data-management) — Information System, chapter 8 - [Data mining and business knowledge](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Adata-mining-business-knowledge) — Information System, chapter 4 - [Planning for business/IT strategies](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aplanning-business-it-strategies) — Information System, chapter 5 - [Layered approach to security](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Alayered-security-throughput) — Information System, chapter 2 - [IS security threats and safeguards](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ais-security-threats-controls) — Information System, chapter 2 ## Related in other subjects - [Cloud and grid computing concepts](https://www.bctengineer.com/question.md?key=semester_8%2Finternet_and_intranet%3Acloud-grid-computing) — Internet and Intranet, chapter 7, asked 2× - [High level vs low level languages](https://www.bctengineer.com/question.md?key=semester_1%2Fcomputer_programming%3Ahigh-low-level-languages) — Computer Programming, chapter 1, asked 2× - [High level languages; C versus FORTRAN](https://www.bctengineer.com/question.md?key=semester_1%2Fcomputer_programming%3Ahll-types-c-vs-fortran) — Computer Programming, chapter 1 - [High level languages and natural language](https://www.bctengineer.com/question.md?key=semester_1%2Fcomputer_programming%3Ahll-similar-natural-language) — Computer Programming, chapter 1