Smith's Information Services, Inc. Is Entering Into Phase 1 Of The Corporate Overhead Reduction Program

Since cloud environment does not reside in a capital facility, there is a substantial saving of the time and space. Also, it provides users access only to the resources they need for a particular task. This prevents them from paying for idle computing resources. Besides, there are competing providers for this service and an organization can always shift its business to another company offering better service or lower price. In terms of statistics, we spend $6,000 per month to update software, maintain our computer lab, and pay our employees. However, implementing a cloud computing with a constructing price of $2800 will incur a cost as low as $249 per month (Hinchcliffe 2009).

With this in mind, it is prudent for any CIO to have a migration strategy to the public cloud. It is now generally accepted that at least some workload and functions of an organization will need to be moved in order to be competitive. Recently, the poster child for Amazon Inc., Netflix Inc. announced that they closed their door on their last datacenter. Although by no

SERVICE LINE DEVELOPMENT According to financial planning, Trinity Community Hospital can construct the new facility for approximately $120 per square ft. (5,000 square ft. building). Currently the facility can be built on the hospital campus for $600,000. Alternatively, the hospital has the option to build the new facility adjacent to the hospital at a price of $700,000. Only building the facility gives the

Smith’s Information Services is in the process of implementing a corporate overhead reduction program. This is due in part to the increasing costs of operating and maintaining an in-house data center, as well as flattened sales and reduced profits. For these reasons Smith’s Information Services is looking to outsource the company’s data center to an outside vendor. The increasing overhead costs include personnel costs to operate and maintain the data center’s servers, data center cooling costs, and electrical utility costs required to run the data center. Reducing these overhead costs, by outsourcing the data center, will help Smith’s Information

We are a 24/7/365 day ran builidng with a team of ten, we are tier three classification of Data Centers.

Outsourcing has grown dramatically in the past few years due to the flexibility offered new information technology. Within the next five years it is estimated that $365 billon or 15 percent of financial service industry current cost will be moved off shore. (Federal Deposit Insurance Corpartion, 2013)

The criteria that data center companies use to determine future locations is immensely sophisticated, considering

Outsourcing will cost $3 million ($0/fixed and $3 million/variable), which is twice the amount of reconditioning the old equipment and 4 times the amount of making a new purchase.

2. Get IT all in house or all outsourced with internal controls in place. Pro, In-House keeps most amount of control. 100% outsourced department costs are easy to reduce if economic issues arise. Con, 100% In-House is costly to maintain and has a long learning curve. 100% outsourced gives up control of fine details.

The NIBCO management team has evaluated their systems and has evaluated that the business was information poor and needed to move away from the current system they are using. They are also looking at how they can enlarge the business and at the same time at more international options while evaluating the issues that come from integrated data capability (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012).

Once the backbone is established, we can divide the remaining WAN needs and extend this out to a competitive bid. A service provider that doesn’t have any preferences or restrictions on choosing providers, may have reduced its WAN spend at this stage by as much as 40%-50%. The enterprise can make a similar run at reducing its Internet access costs. The total savings in networks costs are offset by the need for the enterprise to place a presence in the major data centers it has chosen. It may also have chosen to add some new managed services, with their own fees. The end result is an overall networking cost savings of around 30%. Actual results can vary widely, however, based on the broader goals of re-architecting the network). Figure 2 shows at a high level the math that goes into the cost components, and cost savings, of choosing to re-architect a large enterprise WAN around data center

Answer: Generally speaking, cloud computing does not have the same issues that physical datacenters have when it comes to hardware failures, natural disasters, network failures, and human errors. Cloud providers have datacenters spread throughout the world which are highly available, highly reliable and provide load balancing (Han, 2011) However, backup plans should be made due to the lessons learned during storms in 2012 that shut down power to facilities in the Mid-Atlantic, disrupting cloud storage (Collier, 2012).

The following is a business report that highlights and looks into the functional areas, business processes and information systems adapted of an organisation. For the purpose of this report, Holroyd City Council located in Sydney, New South Wales, will be used as the organisation.

For Salesforce – Sales cloud – Enterprise edition for real time users with $125/user/month = $1500/user/yr. and 5 license with unlimited edition at $250/user/month = $3000/user/yr. for development licenses. Multiplying the numbers by 50 = 39000/yr. for users, $15000/yr. for developer/admin team.

There are several cloud mining exchanges are available on the web like eobot.com, genesis-mining.com, sun-mining.com etc. [7] which provide data center services depending upon the capacity (GH/s) anyone requires