Networked IT
Evaluating the Advantages and Disadvantages
of Using Cloud-Based Systems for IT Storage and Applications
The emergence of cloud computing as a disruptive innovation is redefining the economics of information technologies, application delivery and the pace of new feature development and introduction. Companies who are standardizing on cloud computing for critical tasks including Customer Relationship Management (CRM) do so after evaluating several factors, including the opportunity to expense the costs vs. pay for them via capital expense, the customization of the applications, and the ability to selectively update them over time (Lashar, 2009). Cloud-based applications delivered over Software-as-a-Service (SaaS) platforms are paid for as an operating expense, which is often referred to as OPEX. Traditional enterprise software is paid for through CAPEX, or capital expense investment. This is a critical point in the economics of this market and a primary criterion that TUI University needs to consider was it evaluates using a cloud-based solution for storage of data and hosting applications. The intent of this analysis is to evaluate the advantages and disadvantages of using cloud-based storage and applications at the university, assessing benefits and risks in the process.
Assessing the Benefits and Risks of Cloud Computing for TUI University
Cloud computing offers many potential benefits that are well defined through the marketing efforts of enterprise software companies including Salesforce.com, who has been one of the leading evangelists for this technology platform (Lashar, 2009). The benefits of lower operating expense due to paying for only the storage, computing cycles and transfer rates through operating expense (OPEX) could save the university a significant amount of budget every year. The educational value of a more agile, responsive computing platform that could provide the IT department with much greater flexibility in meeting the staff, administrators, professors and student's needs is also a potential benefit of moving storage and applications to a cloud platform. There is also the potential for the cloud-computing platform to create much greater levels of collaboration and communication campus- and school-wide due to the continual availability of information and knowledge (Hodge, Collins, 2010). Cloud computing would also enable more effective teaching methods as the applications are designed...
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