Expert answer:Cloud Providers and Cost Savings Analysis
Expert answer:XYZ Firm is diverse in its interests, with many different divisions. The chief information officer (CIO) is looking to you for assistance in lowering costs and providing new value-added services to the business. He wants to use the Widget division as a pilot for consuming cloud services. Throughout your 5-week contract with the firm, you will build a methodology that defines an approach for consuming cloud services.The first step is to socialize the business to the notion of cloud computing. There is a lot of fear of the unknown, and it is going to be up to you to help the business take the first step. The CIO wants your assistance in preparing a proposal that he will share with the executive leadership.Write a report that details the possible cost savings with adopting cloud-based solutions and the benefits of using cloud services. Research at least 2 cloud-based providers, and select 1 the following service lines as the basis of your analysis:Human ResourcesSupply ChainGeneral Office Function (such as e-mail and collaboration tools) Your analysis should also give consideration to the following topics for the 2 providers you selected in comparison to an on-premise type of deployment:Speed of deploymentCosts (when possible)Service offeringsElastic scalingVendor lock-inFinally, identify the cloud type that might be most appropriate for the service line you selected out of the following:PublicPrivateCommunityHybridYou may use the following sample as a guide for any cost analysis you wish to consider. The table represents some sample costs that a firm may incur for hosting an on-premise solution to support a business service. The table contains sample cost allocations for IT hosting an on-premise business service.Asset Expenditure One-Time Cost Annual Expenses Recurring costs (every 4 years)Hardware 20,000Software License 5,000Hardware Maintenance 4,000Software License 1,000Administrator Support 10,000Developer Support 10,000 Facilities Costs 3,000Software/System Upgrades 4,000
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Key Assignment Section 1: Cloud Providers and Cost Savings Analysis
XYZ Firm is diverse in its interests, with many different divisions. The chief information officer (CIO) is looking to
you for assistance in lowering costs and providing new value-added services to the business. He wants to use the
Widget division as a pilot for consuming cloud services. Throughout your 5-week contract with the firm, you will
build a methodology that defines an approach for consuming cloud services.
The first step is to socialize the business to the notion of cloud computing. There is a lot of fear of the unknown,
and it is going to be up to you to help the business take the first step. The CIO wants your assistance in preparing a
proposal that he will share with the executive leadership.
Write a report that details the possible cost savings with adopting cloud-based solutions and the benefits of using
cloud services. Research at least 2 cloud-based providers, and select 1 the following service lines as the basis of
your analysis:
•
•
•
Human Resources
Supply Chain
General Office Function (such as e-mail and collaboration tools)
Your analysis should also give consideration to the following topics for the 2 providers you selected in comparison
to an on-premise type of deployment:
•
•
•
•
•
Speed of deployment
Costs (when possible)
Service offerings
Elastic scaling
Vendor lock-in
Finally, identify the cloud type that might be most appropriate for the service line you selected out of the
following:
•
•
•
•
Public
Private
Community
Hybrid
You may use the following sample as a guide for any cost analysis you wish to consider. The table represents some
sample costs that a firm may incur for hosting an on-premise solution to support a business service. The table
contains sample cost allocations for IT hosting an on-premise business service.
Asset
Expenditure
One-Time
Cost
Hardware
Software License
Annual
Expenses
Recurring costs (every
4 years)
20,000
5,000
Hardware
Maintenance
4,000
Software License
1,000
Administrator Support
10,000
Developer Support
10,000
Facilities Costs
3,000
Software/System
Upgrades
4,000
Running head: CLOUD SERVICE CONSIDERATIONS
IT175 – Introduction to Cloud Computing
Cloud Service Considerations
Student X
Colorado Technical University
Faculty: Tavon Reid
8 February 2016
1
CLOUD SERVICE CONSIDERATIONS
2
Contents
Gaining Flexibility While Saving Cost With Cloud Services ……………………………………………. 3
Proposed Cloud Service Providers ……………………………………………………………………………… 4
Comparative Analysis of Service Providers ………………………………………………………………… 4
Cloud Service Types and Migration Considerations ……………………………………………………….. 7
What is Software as a Service? …………………………………………………………………………………… 7
What is Identity as a Service? …………………………………………………………………………………….. 8
Cloud Service Migration Considerations…………………………………………………………………… 10
CLOUD SERVICE CONSIDERATIONS
3
Gaining Flexibility While Saving Cost With Cloud Services
In today’s business world is necessary that staff has access to resources without being
limited to a specific location – mobility is key. Employees frequently require access to resources
from any location, either while in the office, working remotely, or while traveling, and this level
of flexibility also necessitates the need for an organization to have tools readily available to
assist remote resources with collaboration. This level of flexibility and mobility can at times be
difficult to accomplish, especially when using an Information System which does not provide
adequate capabilities to satisfy those needs.
Thankfully organizations today have access to a plethora of providers offering numerous
cloud-based services which can be leveraged to achieve the desired level of flexibility. In
addition to the increased mobility that can be attained by switching to a cloud-based solution, the
reduction of operational cost associated with the upkeep of an on premise information system –
file storage servers for record retention and data storage, software licensing, but also system
maintenance and support – can be an added benefit. Moving aspects of Firm XYZ’s currently
locally stored and maintained office support and productivity tools – specifically email hosting
and management, centralized data storage, productivity and collaboration tools – to a cloudbased solution would be an effective way to accomplish the desired flexibility, adding value to
the organization, while reducing the operational expenses incurred by not having to host data and
productivity tools locally.
Proposed Cloud Service Architecture
The cloud service architecture most applicable for the proposed upgrade of Firm XYZ’s
current office support infrastructure would most likely consist of a “Public Cloud” configuration,
offering a number of distinct features/benefits over an on-premise solution:
CLOUD SERVICE CONSIDERATIONS
4
•
The service provider guarantees data availability and continuous uptime
•
The service provider provides 24/7 support via phone or email,
•
Public cloud-based solutions are scalable on demand; no resources are wasted
•
Public cloud-based solutions are fairly easy and inexpensive to configure
Proposed Cloud Service Providers
Before being able to develop a proposed migration strategy, careful consideration should
be given to the selection of a service provider, as high-end competitors tend to offer similar
feature set and service levels. Of the options which Firm XYZ should consider, specific attention
will be given to following providers: Microsoft Office 365 and Google Apps for Work. Both
providers offer comparable services and both can be considered viable options for replacement
of the organization’s locally maintained productivity tools and infrastructure. A breakdown of
the basic services offered by both providers has been provided below:
Service Offering
Microsoft Office 365
Google Apps for Work
Email
Calendars
Word Processing
Spreadsheet Processing
Presentations
Database
Data Storage
Desktop Publishing
Collaboration
Maximum Users
Cost per User
Outlook (Cloud & Local)
Outlook (Cloud & Local)
Word (Cloud & Local)
Excel (Cloud & Local)
PowerPoint (Cloud & Local)
Access (Cloud & Local)
OneDrive (1TB)
Publisher (Cloud & Local)
Lync (250 Users Max)
300
$12.50
Mail (Cloud Only)
Calendar (Cloud Only)
Docs (Cloud Only)
Sheets (Cloud Only)
Slides (Cloud Only)
None
Drive (Unlimited Storage)
None
Hangouts (15 Users Max)
No Limit
$10.00
Table 1. Service Offering Comparison
Comparative Analysis of Service Providers
CLOUD SERVICE CONSIDERATIONS
5
When comparing both providers by cost alone, it appears that Google Apps for Work
offers a better value per user, considering the service provides tools similar to Microsoft Office
365 with the additional benefit of unlimited cloud storage and no maximum user limit. It would
be worth calling out though that Google Apps does not provide users with the ability to install
productivity tools – such as its word processor or spreadsheet tool – locally, whereas Microsoft
Office 365 does. Google Apps for Work is a fully cloud-based service whereas users of
Microsoft Office 365 can install productivity tools locally, which can be beneficial when an
Internet connection is not available, subsequently allowing users to remain productive even
without access to the service. This could not be accomplished with Google Apps for Work.
Both services offer reasonable scalability, considering that both services are purchased on
a per-user basis, unlike with a traditional on-premise solution which would require additional upfront investment to accommodate any expansion in user base/processing demands. Using email
services as an example, in contrast to a cloud-based solution, with traditional on-premise
equipment it would typically be necessary to perform an analysis of projected user growth before
purchase, meaning that current and future resource demand have to be determined before the
actual equipment purchase, so an organization can ensure its equipment is future proof and
capable of supporting the increased resource demand. On-premise equipment subsequently
would typically require a larger up-front investment in order to ensure sufficient room for
growth, which is not be the case with a cloud-based solution, considering users can simply be
added on demand by simply purchasing additional “seats.” The cloud service provider would be
responsible for ensuring that their infrastructure is capable of supporting the demands of its
clients.
CLOUD SERVICE CONSIDERATIONS
6
Vendor lock-in as well as taking a closer look at the vendor’s policy on data portability
and extraction should be an important point the organization should consider before deciding on
a specific service provider. While lock-in and portability may not be an issue as long as the
organization is using the provider’s services, this issue becomes crucial should the organization
wish to migrate to a different service provider at a later date. It is essential that the organization
is provided with viable means of exporting its data from the current cloud service provider.
Both Microsoft Office 365 as well as Google Apps for Work offers their clients the
ability to extract client data from its service. Microsoft indicated that they allow their clients
download all data – Exchange Online data such as emails, calendar appointments, contacts, and
tasks, but also Sharepoint documents and end-user metadata (email addresses, names, other
related data), at any time for any reason, without any assistance from Microsoft (Microsoft, Inc.,
n.d.). Furthermore, Microsoft also provides the ability for clients to extract their data up to 90
days after service expiration date. Google indicated that Google Apps for Work offers similar
functionality, providing the ability to extract all data from its services including Mail, Drive,
Calendar, but also contacts, messenger data (Google, Inc., n.d.).
Vendor lock-in may be more of a concern with Google Apps for Work since their tools
do not enjoy the wide spread support Microsoft’s suite of programs does among vendors and
organizations. While Google’s tools, such as Google Docs, do provide the ability to import as
well as export data in Microsoft Office compatible formats, the tools themselves in contrast to
Microsoft’s suite of programs offer less functionality and features. While for basic day-to-day
use this may be acceptable, the organization’s business team should review the functionality
provided by Google’s services carefully in order to determine if the services offered are able to
meet the business’s needs.
CLOUD SERVICE CONSIDERATIONS
7
Cloud Service Types and Migration Considerations
In case of Firm XYZ’s proposed migration effort it may be beneficial to understand how
specific cloud services are differentiated, considering cloud services have the potential to cover a
very broad spectrum of functionality, and with what exact service type the current on-premise
solution will be replaced with. Cloud-based services are typically categorized according to their
intended function and use, such as Software as a Service (SaaS) and Identify as a Service
(IDaaS) – both which are integral components of the proposed migration effort, but also Platform
as a Service (PaaS) and Infrastructure as a Service (IaaS)
What is Software as a Service?
Of the available cloud services, Software as a Service (SaaS) specifically focuses on
providing end-users with web-based access to commercial grade software, alleviating the need
for on-premise installation of software, software licensing, and patch management (Kepes,
2013). SaaS solutions provide functionality which would usually be characteristic for clientbased installations, for example replacing functions typically provided by productivity tools such
as word and spreadsheet processing, or Customer Relationship Management (customer contact
and case management).
Kepes (2013) indicated that SaaS lends itself well for solutions where the product to be
replaced with SaaS does not differ substantially from services offered by different SaaS
providers, and where the same application is considered such fundamental technology in the
operation of a business that it is also frequently used by other competitors. Examples for such
technologies include productivity tools used for word processing, but also email as well as
collaboration tools. Kepes indicated that SaaS solutions are viable and typically deployed when
CLOUD SERVICE CONSIDERATIONS
8
the business demands increased accessibility to these tools, as it would be the case in an
environment where remote work due to travel is frequently required.
Looking at this definition and the provided use case, it should be obvious that the two
cloud-based services which had previously been reviewed in depth previously – Microsoft Office
365 and Google Apps for Work – are considered Software as a Service solutions and that it is the
intent to replace the local installation with a SaaS implementation. Since both solutions offer a
similar service set as well as cost basis, Firm XYZ should also consider additional components
of its infrastructure which may be impacted by the migration and which may ultimately influence
the product to be chosen.
What is Identity as a Service?
User account management can be a rather complex and time consuming administrative
task for an organization, since users frequently require access various resources such as
applications or services in order to accomplish a given task. Difficulties often arise when users
are required to remember multiple login credentials for multiple services, which is not only
cumbersome for the user but also requires additional administrative effort by the system
administrator in order to ensure that the user has adequate permissions and that each account has
been provisioned properly for the application or service in question. Unlike management
solutions which are on-premise, such as an Active Directory (AD) Domain Controller, IDaaS is a
“cloud-based approach to managing user identities, including usernames, passwords, and access”
which can be leveraged to perform such tasks (Jamsa, 2013).
IDaaS solutions typically provide mechanisms for authentication, access authorization,
user account management, and audit logging, though not all solutions are equally capable of
CLOUD SERVICE CONSIDERATIONS
9
supporting various activities. While one given solution may be effective in user account
management, it may only provide limited support of Single Sign On, or compliance with specific
regulatory requirements may not be achievable, which may be possible with the services offered
by a different provider.
Firm XYZ should consider making use of an IDaaS solution in order to minimize the
administrative overhead involved in user account management and to provide Single Sign On
capabilities. Two of the solutions to be considered would Microsoft Azure Active Directory and
Okta Identity Management.
Service Offering
Microsoft Azure AD
Okta Identity Management
Universal Directory
Single Sign-On
Provisioning
Usage Reports
On-Premise AD Integration
User Self-Service
Multi Factor Authentication
SaaS App Integration
Cost
Yes
Yes
Yes
Yes (Basic)
Yes
Premium Only
Premium Only
10/User
Variable
Yes
Yes
Yes
Yes (Enhanced)
Yes
Yes
Yes
Unlimited
$6 per user/month
Table 2. IDaaS Service Offering Comparison
While the table listed above only provides a brief summary of core services supported by
both Microsoft Azure Active Directory and Okta Identity Management, it is obvious that both
services provide a similar feature set. Azure Basic does not include user self-service and multi
factor authentication, and the final fee will have to be arranged with the provider; Microsoft does
charge $6 per user/month for the premium service. Okta on the other hand offers estimated
pricing of their services, and services are more granular than Microsoft’s offerings: Okta allows
users to customize their product to include only features that are needed/desired, and with
comparable feature set to Azure AD Premium, the cost would be equivalent at $6 user/month.
CLOUD SERVICE CONSIDERATIONS
10
Cloud Service Migration Considerations
After having properly considered all aspects of the new cloud service e.g. by having
performed an assessment of the new solution’s requirements and risks associated with the
proposed service, a migration strategy should be developed. Jamsa (2013) indicated that a
migration strategy will involve several points of which the most critical have been outlined
below:
•
All data should have been properly backed up prior to migrating to the new solution.
The cloud provider should also support the extraction of data in case the organization
has to revert or migrate off the solution. Also, the provider’s data handling policies
should be compliant with any regulatory requirements that an organization may be
bound to, such as HIPAA or PCI.
•
Scaling issues with the cloud-based solution can be prevented if the current onpremise solution has been properly assessed for resource use, especially during peak
hours. The organization should ensure that the cloud-based solution is capable of
supporting the demand.
•
A training plan should be developed prior to the migration, and training should occur
before, during, and after the implementation of the new service. Without adequate
training, employee productivity may otherwise be negatively impacted, at least until
the necessary degree of familiarity with the new service has been established (Jamsa,
2013).
CLOUD SERVICE CONSIDERATIONS
11
References
Google, Inc. (n.d.). Migrate data away from Google Apps. Retrieved January 12, 2016, from
https://support.google.com/a/answer/100458?hl=en
Jamsa, D. K. (2013). Cloud Computing, 1st Edition. [VitalSource Bookshelf Online]. Retrieved
from https://bookshelf.vitalsource.com/#/books/9781284042979/
Kepes, B. (2013). Understanding the Cloud Computing Stack: SaaS, PaaS, IaaS. Retrieved from
https://www.rackspace.com/knowledge_center/whitepaper/understanding-the-cloudcomputing-stack-saas-paas-iaas
Microsoft, Inc. (n.d.). It’s your data. Retrieved January 12, 2016, from
https://products.office.com/en-us/business/office-365-online-data-portability
…
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