e Software costs 1 mark Software licensing costs are part of the analysis There

E software costs 1 mark software licensing costs are

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computer, so power use per application is likely to drop. e. Software costs (1 mark) Software licensing costs are part of the analysis. There will be existing costs of licenses and a transition to cloud alternatives will likely alter them. If the business embraces thin-client office software (i.e. accessed via a browser only) instead of, say, the full Microsoft Office suite, those costs may drop dramatically. f. Data storage costs (1 mark) Storing data that emerges from a company’s use of software applications has costs too. A business in pre-cloud mode will typically have significantly-sized file servers to accommodate this need. It will also typically have an annual growth plan for that storage capacity. A cost- benefit analysis for a cloud transition should take into account a comparison between potential investment in on-site servers and the alternative of providing that scale in the cloud. The analysis should take into account that cloud capacity may be obtained, and charged for incrementally, which may be beneficial. g. Transition costs (1 mark) Implementing new systems always has a cost. There are some obvious direct transition costs. The project manager and associated team are paid by someone. If they are in-house, their cost can be absorbed. Perhaps they are redeployed from other duties for the project’s duration, at some opportunity cost. They may also require additional skills training.
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6. “The benefit part of the cost -benefit analysis for introducing cloud computing is about money.” Is this statement correct? Why or why not? (2 mark s) It is not correct, because it is also about intangibles things that are hard to quantify but are nonetheless critical success factors for the business. These are typically highlighted in a business case. 7. List FIVE (5) steps in preparing a business case. (5 marks) Assessing the current IT services and resources that can be migrated to a cloud solution. Identifying mission critical services and resources that should be kept on-site and not migrated to the cloud. Conducting a cost-benefit analysis. Producing a report that presents reasons, supported by facts, about the services and resources that should be moved to the cloud and those that should not. Signoff. 8. What EIGHT (8) basic components should be contained in a business case? (4 marks) A brief description of the current state of play. A list of limitations or problems confronting the business if things are left as they are. A brief description of new ICT approach(es) which, if adopted, promise advantages to the business. A list and justification of those anticipated advantages in general language, not jargon. The dollar-based version of the cost-benefit analysis, also addressing the time-frame over which the new spending and altered cash flow would occur. Compare that to business-as- usual.
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