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OUTSOURCING AND CLOUD COMPUTING (CLOUD COMPUTING (Risks (Denial of service…
OUTSOURCING AND CLOUD COMPUTING
OUTSOURCING
Advantages
Capital expenditure minimised
No system administration
Multi-tenancy
Shared resources between large pool of users for centralisation of infrastructure
Scalability: ability to expand
Reliability
Security
Performance and speed
Independence of device and location
Risks
Wright (2004)
Loss of control data
Loss of confidentiality and privacy
Legal consequences
Other problems:
Inflexibility: lengthy contract time
Reduced competitive advantage due to the loss of understanding of one's own business and systems
Locked-in system: have to buy back system at high cost
Unfulfilled promises: efficiency gains not achieved
Poor services
Types of Outsourcing (slide 37)
Factors to be considered before Outsourcing
CLOUD COMPUTING
Risks
Denial of service vs. managing technological change
Costs of developing capabilities vs. ‘cheapness’ of global solution
Owning vs. using
Independence vs. dependence
Managing staff vs. managing staff’s employer
Known costs vs. unknown costs
Cloud-based solutions
Cloud computing: Virtual data centre
Server machines are just a commodity in a greater collection of server machines (hardware was a service)
SaaS (Software as a Service)
Software provided by a third party, over the internet
Usage-based pricing
PaaS (Platform as a service)
Build own applications to run on provider's infrastructure for users
Why Cloud Computing - Its main drivers to use it
Security of confidential and private client data;
Concerns over federal/state rules and regulations concerning the protection of client data;
The need for anywhere/anytime access;
Industry movement towards cloud computing
The risks associated with locally-stored data and applications (when disasters hit!)
Limited individual company’s capability to develop, maintain a state-of-the-art AIS
Advantages for accounting services
Document Management Technology Is a “Must Have”
Smart Firms Are Leveraging the Cloud/SaaS Model
Improve efficiency and productivity and inter-departmental coordination
Improve management decision making due to anywhere/anytime access
Helps a firm keep or develop a competitive edge and drive profitability
Thích hợp cho các loại hình công ty nào?
Businesses with standard applications
Lower service level requirements
Higher operational costs
Little commercially sensitive information
Capital-constrained businesses
What to consider before moving to Cloud Computing? - các quyền kiểm soát cần thiết
Disaster recovery planning; and
Putting a process in place to enforce the firm’s document retention policy.
Careful selection of vendor: reliability and quality of vendor very key (referring to SDLC system design and selection criteria!)
Clear and careful contract terms regarding quality, security and other issues
Vendor audit