Lecture 5 Flashcards
What is governance?
Is a “System”, a “Framework” and “Structure”:
- It defines the processes that ensures effective and efficient use of IT in enabling organisations to achieve their goals and make decisions.
(IT Governance Issue: April 2011: PlayStation Network hacked. Data and credit cards potentially compromised)
What does Sourcing of IT in IT governance consist of?
Decisions about IT sourcing are most important from a governance point of view:
- Massive contracts
- Lengthy processes
- Massive cost/Quality
What is Insourcing?
Insourcing (MAKE)
IS services and infrastructure are developed internally to the organisation to maintain the control of production.
What is Outsourcing?
Outsourcing (BUY)
A profitable strategy that hands over the control of IS services and infrastructures to the suppliers outside the organisation.
- An IS Staff has not got much knowledge and experience than an outsourcing provider
- Why? Desire to reduce cost, transition to **new technologies **
What is Onshoring?
Onshoring: “Sweet Home”
Performing outsourcing work domestically
- To the same country
- In rural/undeveloped areas
Benefits:
- Same language, cultural, business ecosystems, time zones
Disadvantages:
- Struggle to manage large projects and cope
What is Offshoring? +/-
Offshoring: “In the galaxy far away…”
- Outsource to a distant land
- Cheaper cost in labour
Benefits:
- Cost savings, Economies of scale
Disadvantages:
- Physical/political barriers: language, culture, time-zone, government
- Need to send manager offshore for long periods
What is Farshoring?
Outsource to a distant, foreign land for cheaper labour cost or in different time zones such as UK, China, India etc.
What is Nearshoring?
Outsource into a cheaper, distant land with cultural/political barriers
- Hopes to benefit from one or more ways of being **closer: temporarily, culturally, economically **
Captive centre
The vendor is an overseas subsidiary set-up to serve the parent company and other customers. Two common captive centres are: Hybrid and Shared
It operates as a outsourcing provider (vendor), owned by outsourcing company
- Maintain control (management)
- Benefit delocalisation
Service-as-a-Service (SaaS)
Outsourced in the Cloud
Applications hosted by a service that is provided to customers over a network (cloud technology)
- CRM
- Gmail
- One Drive
Benefits:
- Shorter adoption cycle for enterprise SW
- No maintenance/update of enterprise SW
- Pay per use
Disadvantages:
- Limited customisation available
- Reply on updates/improvements of vendors
- Limited control over data
PaaS – Platform as a Service
Consumers deploy self-developed or acquired their applications on a computing platform (.i.e. OS, database, network connection) made available by the provider
Benefits:
- Eliminate servicers and networks
- Pay per use
- No power or electricity cost
Disadvantages:
- Dependence on the vendor
- Mitigation can be painful
- Standards slow emerging
IaaS - Outsourced in the Cloud
Provides or makes available raw computing resources (process, storage, networks) that consumer use to run **arbitrary software **
Draw the Sourcing Decision Cycle Framework diagram
What is Cloud Computing?
is a remote servier that provides ‘on-demand network’ access to computing resources
(such as networks, servers, applications, storage etc)
Requires minimal serice provider interaction
Cloud Computing Features
-
On-demand and self-service
- Consumers request for computing capabilities with minimal interaction with the provider
-
Broad Network Access
- Computing capabilities provided over a network
-
Resource Pooling
- Providers can pool resources to serve multiple consumer requests at a time transparently
- _Rapid Elasticity _
- Computing capabilities can elastically scale-up down
-
Measured Service
- Cloud computing resources are monitored for optimisaiton allowing **payment mechanisms **
