Cloud Computing & Mitigating outsourcing risk Flashcards
What is cloud computing?
Cloud Computing is an IT service model where computing services (both hardware and software) are delivered on-demand to customers over a network in a self-service fashion, independent of device and location.
->cloud computing is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”)
What are the advantages of cloud computing?
o lower cost of entry for small companies and third-world countries
o almost immediate access to hardware resources with no upfront capital
o can lower IT barriers to innovation
o easier for enterprises to scale their services
What is multitenancy
a single instance of an application software serves multiple clients
What is scalability
the capacity to be changed in size or scale
What is software-as-a-service (SAAS)
This refers to a cloud computing service that delivers software applications over the internet, typically on a subscription basis.
* e.g. Google Apps, GMail
What is infrastructure-as-a-service (IAAS)
This refers to a cloud computing service that provides users with access to computing infrastructure, such as virtual servers, storage, and networking, over the internet.
e.g. Dropbox
What is platform-as-a-service (PAAS)
facilitates the development and deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layers
* e.g. Google App Engine
Why does cloud computing often face resistance from the internal IT department?
- Fear of change in corporate IT culture
- Fear of job loss/being replaced/redundant -> 2/3 of It staffing budget goes to maintenance & service
- Security concerns -> losing control over data/security measures
- Lack of visibility -> clouds can make it difficult to monitor and troubleshoot issues that arise
- Cost concerns -> hidden costs, such as data transfer fees, or difficulty in accurately forecasting expenses
When comparing on-premise and cloud computing what are the Ownership and control arguments?
Ownership and control:
* Cloud computing resources are owned and controlled by a third-party provider, while on-premise resources are owned and controlled by the organization
* With cloud computing, the organization is responsible for managing and securing their data and applications, while the cloud provider manages the underlying infrastructure
* With on-premise computing, the organization is responsible for managing and securing all aspects of their computing resources
When comparing on-premise and cloud computing what are the Ownership and control arguments?
Ownership and control:
* Cloud computing resources are owned and controlled by a third-party provider, while on-premise resources are owned and controlled by the organization
* With cloud computing, the organization is responsible for managing and securing their data and applications, while the cloud provider manages the underlying infrastructure
* With on-premise computing, the organization is responsible for managing and securing all aspects of their computing resources
When comparing on-premise and cloud computing what are the Cost arguments?
Cost:
* Cloud computing typically has a pay-per-use model, meaning organizations only pay for the resources they use
* On-premise computing typically requires a large upfront investment in hardware and software infrastructure, with ongoing maintenance costs
* Cloud computing can be more cost-effective for organizations with fluctuating resource needs, while on-premise computing may be more cost-effective for organizations with stable resource needs
When comparing on-premise and cloud computing what are the Scalability arguments?
Scalability:
* Cloud computing resources can be easily scaled up or down depending on the organization’s needs
* On-premise computing resources can be more difficult and time-consuming to scale up or down, as hardware and software upgrades may be required
When comparing on-premise and cloud computing what are the Accessability arguments?
Accessibility:
* Cloud computing resources are accessible from anywhere with an internet connection
* On-premise computing resources are typically only accessible from within the organization’s network
* During downtimes the organization is dependent on the provider while during on-premise computing they have it in their own hands
When systematically comparing on-premise and cloud computing what are the Security arguments?
Security:
* Cloud computing providers typically have robust security measures in place to protect their infrastructure and customer data
* On-premise computing requires the organization to implement and maintain their own security measures
Systematically compare cloud computing and on-premise computing. Is it true that
cloud computing is inferior to on-premise computing? What are the categories to compare?
- Ownership and control
- Cost
- Scalability
- Accessibility
- Security
Can cloud computing be seen as a disruptive innovation?
- Disruptive innovation – transforms a product which could only be used by a privileged few into an affordable and accessible technology -> democratises the technology/product
- Yes, drives down prices and makes certain technologies accessible to a new market ->SME can now implement ERP-like systems/etc.
What are the risks associated with IT outsourcing the development of information systems?
o strategic risks
- shirking, poaching, opportunistic renegotiation
- operational risks
- intrinsic risks of atrophy
- intrinsic risks of location
What are strategic risks associated with outsorcing business processes?
Shirking, Poaching/Misuse of information, Opportunistic renegotiation/vendor holdup
(more important details in Word Sheet!)
Discuss the mitigation mechanisms that can be employed to control strategic risks and their effectiveness
o Horizontal chunkification – describes what portion or fraction of each activity will be allocated to the client and what portion will be allocated to the vendor -> maintain two or more competing vendors
o Vertical chunkification – describes which activities will be allocated to the client and which will be allocated to the vendor -> dividing a process into nonoverlapping tasks that are assigned to different vendors to limit knowledge transfer
(More details on Word Sheet)
What are the resources required to provide the requisite quality-of service levels in cloud computing?
- The resources required to provide the requisite quality-of service levels are:
- Shared
- dynamically scalable
- rapidly provisioned
- virtualized and released with minimal service provider interaction
- Users pay for the service as an operating expense without incurring any significant initial capital expenditure, with the cloud services employing a metering system that divides the computing resource in appropriate blocks.”
->cloud computing is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”)
