Question

Economic arguments for migrating corporate data centres and computing infrastructure to the cloud have often been quite persuasive. However, for large-scale business ventures and complex organisational scenarios, careful prior analysis, financial modelling and planning is often needed.

Carry out the following tasks:

1. Select any business sector in the country in which you currently reside, and present a reasonably detailed case, based mainly on economic grounds, for why large organisations in that sector would be better off relocating their IT systems to the cloud, fully or partially. Your write-up should be supported by factual data relevant to the selected business sector/country, and should include estimated cost savings, if any, for cloud migration of their IT systems, either fully or partially.
2. Are there any business-related, regulatory or other non-economic factors that could significantly affect the economic arguments you have put forward? For at least one of the factors mentioned, explain, and attempt to quantify in some detail, what effect this has on the economic arguments you presented for sub-task 1.

(600-800 Words)

Answer 1

• Virtualization of Network components to provide better network services with minimum capital investment.
• Taking the example of Ericsson, a company which was losing business when they were unable to capture market in the era of evolution of smartphones.
• They shifted their focus to the virtualization of network equipments & components and migrating all the business logic and data to cloud.
• They are now a key player in the Mobile services industry and provide services to a large number of customers accross the world like China Mobiles, Telecom Italia, ZTE, etc.
• The services provided are - Migrating of user data to the cloud, Virtualization of network components and using those virtual compnents to provide better service to the end user, easy scale up/down of the resources as per need, very less initial setup cost, minimum need of hardware installation.
• One of the main non-economic benefit is highly availablility of services which lead to high satisfaction rate of customers. Almost all the data can be accessed from any location in the world and loss of data is also very rare since regular backup can be taken.