Question

In Modern Infrastructure strategy there are 2 basic models to consider. Keep in mind choosing the best for the business is the right strategic decision. There is also a 3rd a hybrid or combination model.

Model 1-Traditional onsite of co-located data center facility. This houses your network, storage and compute technologies. You purchase and manage the equipment and your entire network/compute environment yourself.

Model 2-Newer Cloud or SAS model. In this model all the network, comput, storage lives in the cloud or at a service provider's datacenter. It's model 1 but your paying someone to host and maintain the environment for you.

**Compare and contrast the 2. What is the right strategy for a smaller start-up firm? What about a larger more established firm. Support your arguments and create a strength and weakness argument for each small vs larger firm. Remember concerns like cost, scale, security etc-as discussed in class.***

{Please focus more on the bottom part with the stars. A thorough explanation is appreciated.}

Answer 1

Cost : Having in house data center will cost you large money than using SAS model. As you have to pay for infrastructure, network maintenance, security, power etc. So if you are running a startup go for SAS model, if yours is a well established business go for in house data center as it gives much control over data than SAS model, plus you have capital to build your own data center.

Scale: Coming to scaling both SAS model and In house data center have equal capability to grow, SAS model in fact automatically scale your resources in case of requirement and charges accordingly. Coming to in house data centers you should have additional servers to handle heavy traffic.

security : Coming to security both have equal chance of failure, if you choice the better vendor for SAS model there is less chance of loosing security. Coming to in house data center all is in your hand , you should allot better budget for security as a well established company any loss of security can cost loss of reputation.

One thing to note down is that large firms are in business from large period and also planned their business for many more years, In fact they have large capital and resources so it is always an ideal choice to go for in house data centres as it provides them more control over their customers data and any changes in business plan can done quiet easily.

Coming to start ups they are not in the business from larger period though they might have planned the great future, things are uncertain and also having less capital , resources, it always a preferable choice to go for third party service provider as it will cost less than what it should have if you have in house data center.

Wrapping it up startup should go for SAS model as it gives then freedom to focus on growing the business and it is cost effective as well. Once the business is well established build your own in house data center. So, it gives you independence and more control.