Section 2: Analysis Document
The total number of users is 1500. The cost of each email user is without the cloud technology is $233 because the company has to pay for the services that goes with the email provision such as maintaining email servers.
On the other hand, when the email service is migrated to the Cloud service the cost per user is 150$ per user compared to the cost of $223 without the cloud service.
The total cost of 1500 users without the cloud is $350000. The total cost of the 1500 cloud email users is $225000. This is a huge difference of $125000. The ROI (Return on Investment) is 55.56%. If the cloud service is adopted, it will save the company $125000 in the first year provided the number of users remain the same.
It is a completely feasible to complete the project for the company to migrate its email infrastructure to the cloud service.
Provide a business analysis and justification for determining if the project is worth completing. The financial information related to the IT project to migrate the email users to Cloud is self-evident that the cost of the email service can be minimized. Other than this there are many justifications in the favor of the Cloud computing that suggests that the project should be completed. Please look at some of the following.
Forrester (an independent IT and marketing research organization) identified the following benefits of migrating IT infrastructures to Cloud.
- Cost reduction
- Ability to provide service becomes rapid
- Relocation of IT resources such as email servers (data) projects that are more business centric.
- Elimination of the maintenance cost and software upgrades. All the software remains up to date.
- The Cash flow can easily be shifted from capital expenses to operational expenses leading to improvement in the organizational performance.
There are various other justifications also which makes it very feasible to migrate the email infrastructure to the Cloud.
- The initial investment is very low. Email server costs are in the tens of thousands of dollars while this cost can be dramatically reduced if the complete email infrastructure is migrated to the Cloud.
- Deployment Time. The deployment time for an email infrastructure can take days. It also costs time to upgrade or update. The Cloud can launch the email service in seconds, completely on demand.
- When traditional email infrastructure many issues such as bandwidth problems or slowing down of the network or other maintenance problem may evolve to crash the servers, whereas Cloud based server infrastructure can easily scale up or scale down according to the requirements of their clients.
- Burstability is a feature that is nonexistent in dedicated servers. This is a feature in which a lot of capacity (such as RAM or bandwidth) is required for a small period of time. This functionality can be effectively granted in a Cloud infrastructure.
- No single point of failure. The Cloud does not have a single point of failure while in the case of a dedicated server if the server is not clustered or load balanced, It can crash and bring down the whole email service on its knees for many hours or possibly days until the problem is fixed.
- Energy Efficient thus environment friendly. Cloud computing is a green technology. The cloud computing machines are made with efficiency in mind.
- Available anywhere, anytime, by anyone. The cloud email service is available everywhere on the globe 24/7. If a company has many offices scattered around the world, then providing email and other network services can be quite a challenge for the IT department of the company. In such a scenario Cloud computing may be a very valuable option.
Provide an alternative adoption to this migration that can satisfy the ROI. One the best and highly recommended alternative to Cloud computing that can satisfy our ROI is “Google Apps for Business”. Google Apps for Business provides 50 email users for free and if you need more than 50 accounts Google charges 50$ per user.
Google Apps for Business has many features in common with Cloud computing, but one feature of Google Apps for Business makes it very outstanding, besides the low costing email service, it is very flexible when it comes to user collaboration. The employees of an organization can work together along teams, organizations and locations and this results in increased productivity.
(Perspectives on Cloud Computing & Training from Learning Tree International, 2010)
Ancoris.com,. (2009). Cost Analysis: Cloud based corporate email. Retrieved 26 April 2014, from http://ancoris.com/cloud-computing/google-apps-for-business/cloud-email-cost-analysis-forrester.html
Frondozo, E. (2013). Advantages & Disadvantages of Moving Your Infrastructure to the Cloud | Slingshot Blog. Slingshot. Business Phone Systems. Simplified.. Retrieved 26 April 2014, from http://blog.slingshotvoip.com/slingshot/features/advantages-disadvantages-of-moving-your-infrastructure-to-the-cloud/
Perspectives on Cloud Computing & Training from Learning Tree International,. (2010). Cloud Computing Services and Alternatives. Retrieved 26 April 2014, from http://cloud-computing.learningtree.com/2010/11/28/cloud-computing-services-and-alternatives/