Ch 13.2 Strategies for Acquiring IT Flashcards
what are the 4 questions that determine the IT app a company chooses
1) how much code does a company want to write ? (pre-written, modifying pre-written, writing new)
2) how will company pay for the application (buy or lease, or inteneral funding)
3) where will application run? (companys platform or SaaS)
4) where will the app originate? (open source, vendor, in house)
Purchasing a pre-written application- pros
- cost effective
-time saving
-lots of choice
-try before you buy
-no need to hire ppl dedicated to this
Purchasing a pre-written application- cons 7
Software may not exactly meet the company’s needs.
Software may be difficult or impossible to modify, or it may require huge business process changes to implement.
The company will not have control over software improvements and new versions.
difficult to integrate with existing systems.
Vendors may discontinue a product or go out of business.
Software is controlled by another company with its own priorities and business considerations.
The purchasing company lacks intimate knowledge about how and why the software functions as it does
customizing a pre written app- pros
software vendor allowing modifications make things easy!
customizing a pre written app- cons
- sucks when its the only option
-can be expensive, and hard
-can become obsolete easily
LEASE a pre written app- pros
-saves time and money
-apply 80/20 rule
-attracted to small/medium sized companies
-low committment
LEASE a pre written app- cons
-may not fully fit the demands of in house
what is the 80/20 rule, and how does it apply to leasing software
if software meets 80% of company needs, then the company should modify the remaining 20% of business
so apply it to leasing!
3 ways software can be leased
1) lease app from a software dev, install and run
2) run it on a vendor platform
3) run it on a vendor platform
using app service providers and SaaS - pros
-pay as you go
what is an application service provider (Asp)
agent/vendor that assembles the software needed by enterprises and packages it with services like dev, ops,maintenance
SaaS meaning
vendor hosts the apps and provides services to customers via network (internet)
-customers dont own software, they pay to use it
-customers do NOT need to install and run application on own computers
ASP data centre visual
-separate databases
-each database leads to a different application
- each application goes to a different customer
ASP data centre manages all databases and applications
SaaS vendor data centre visual
- one database for all the customers
-one application - all customers use the same application
in SaaS if there is only one database how are customers privacy protected
vendor partitions it for each customer to protect the privacy and security of each customer’s data.
