11822, 1157 PM Building a Business Case for Cloud Computing

1/18/22, 11:57 PM Building a Business Case for Cloud
Computing
Learning Topic
Building a Business Case for Cloud
Computing
Your business case needs to be brief and communicate the
basics of cloud computing in a
manner that is easy for a layperson to understand. Analogies are
a good way to convey
this information to nontechnical audiences, such as your
executive leadership team.
Example:
Complex Concept Analogy
Cloud computing is billed
based on actual usage on a
recurring basis, and does not
require an upfront investment
in computer hardware,
networks, staff, or facilities.

Cloud computing is similar to purchasing
electricity from the utility company. When you
use electricity, you get a bill from the utility. The
utility customer doesn't have to invest in
purchasing or maintaining power generation
equipment, staff, or facilities.
Economies of Scale
One of the benefits of cloud computing is the ability to take
advantage of economies of
scale. Cloud service providers provide a large-scale platform to
a number of different
clients, which reduces the unit cost that each client pays.
In a traditional on-premise IT model, each organization has to
invest in data center
facilities, telecommunications links, network infrastructure,
servers, storage, staffing,
applications, and databases. Under a cloud computing model, an
organization can simply
rent these items from an organization that invests in these items
on a much larger scale.
Return on Investment (ROI)

Computing
Calculating the return on investment (ROI) (the amount of
return on an investment
relative to its cost) is critical for an organization's decision-
making process. Organizations
are more likely to invest in an initiative if you can provide
management with evidence that
the investment will pay off financially. For example, if you find
that moving the
organization's infrastructure to the cloud will result in a 431
percent annual cost savings,
then you should highlight this savings in your presentation.
UMGC graphic
In this case, ROI would be calculated with:
gain from investment (GFI) = $10,073 - $1,596
cost of investment (COI) = $1,596
ROI = (gain from investment - cost of investment) / cost of
investment
h6

Computing
($8,477 - $1,596) / ($1,596) = 431%
ROI = 431%
On-Premise Model vs. Cloud Model for Data Storage
On-Premise Model Cloud Computing
Hardware/software hosted
on-premise by the
organization
Hardware/software is hosted off-premise by an
external organization (public cloud model).
Provisioning is based on
estimated peak demand,
which can lead to
insufficient resources during
peak periods and a surplus
of resources during normal
periods
Provisioning is dynamic based on actual demand.

Internal IT staff support the
entire technology stack --
data centers, networks,
compute, storage,
applications, and databases
Staffing requirements can vary, depending on the
type of cloud services acquired. If all infrastructure
needs are provided by the cloud provider, then an
organization could eliminate many IT positions such
as network administrators, systems administrators,
and data center staff.
Capital expense budgets are
required, and it can take a
long time to add capacity or
refresh systems
Capital expense budgets are no longer required, and
additional capacity can be added quickly.
Departments may or may
not have financial

chargebacks for IT services
Billing is automated, and reports can be provided for
finance to charge individual departments.
Source: The Open Group. (n.d.). Building return on investment
from cloud computing.
Retrieved from
http://www.opengroup.org/cloud/wp_cloud_roi/p2.htm
Computing
IT Business Needs
You will need to assess the IT needs or requirements of the
business to determine
whether cloud computing is a feasible option for the
organization. To evaluate what the IT
business requirements are, you should look at the company's
historical IT needs (current
IT infrastructure), future growth areas of the business (new
business and expected growth
projections), and evaluating financial factors (ROI, TCO, IT
budgets, service costs).
Cloud Reference Model
A cloud reference model or architecture helps you to better

understand the different
parties that perform transactions, processes, or tasks in a cloud
computing model, as well
as the interactions between these parties.
Source: National Institute of Standards and Technology. (2011).
NIST cloud computing reference architecture. In the
public domain.
Cloud Architecture
Cloud architecture is a term referring to the various components
required under a cloud
computing model. For example, in an infrastructure as a service
(IaaS) delivery model,
these components might include compute and storage nodes and
network connectivity,
and it is up to the cloud architect to determine how these
components should interact
Computing
with one another. In a software as a service (SaaS) delivery
model, these components
might include front-end interfaces (web, mobile), middleware
(business-specific

applications, application servers), back-end (databases), load
balancing, and caching
services (Akamai, memcached, Amazon ElastiCache).
Cloud Migration Methods
Organizations moving to cloud computing models need to
evaluate how to migrate their
existing IT workloads and data. Each organization has to
evaluate whether it wishes to
hire a third party to help facilitate the migration, or perform the
migration using its own IT
staff. Different migration methods may be used depending on
whether it is an application,
database, or infrastructure services.
Current Trends in Cloud Computing
Cloud computing is fast-paced and rapidly evolving, so the
current trends today will be
different than the trends tomorrow (Boulton, 2016).
Some organizations may shift away from private clouds, in
favor of less expensive
public cloud implementations.
Cloud cost containment is very important, and new cost
management tools are being

developed to aid in this.
Applications are being rewritten as native cloud applications.
Enterprise applications are moving to the public cloud.
References
Boulton, C. (2016, November 2). 6 trends that will shape cloud
computing in 2017.
Retrieved from http://www.cio.com/article/3137946/cloud-
computing/6-trends-
that-will-shape-cloud-computing-in-2017.html
Khasnabish, B. (2010). Cloud reference framework. Retrieved
from
https://tools.ietf.org/html/draft-khasnabish-cloud-reference-
framework-
00#page-6
Liu, F., Tong, J., Mao, J., Bohn, R., Messina, J., Badger, L., &
Leaf, D. (2011). Special
publication 500-292: National Institute of Standards and
Technology (NIST) cloud
computing reference architecture. Retrieved from
https://bigdatawg.nist.gov/_uploadfiles/M0008_v1_7256814129.
pdf

Computing
https://leocontent.umgc.edu/content/scor/uncurate d/cca/2218-
cca610/learning-topic-list/building-a-business-case-for-cloud-
computing.html?ou=622270 6/6
A Service Brokering and Recommendation Mechanism for
Better
Selecting Cloud Services
(https://leocontent.umgc.edu/content/scor/uncurated/cca/2218-
cca610/learning-resource-list/a-service-brokering-and-
recommendation-mechanism-for-better-sele.html?ou=622270)
Cloud vs. On-Premise Network
cca610/learning-resource-list/cloud-vs--on-premise-
network.html?
ou=622270)
Definition of ROI - Return on Investment
cca610/learning-resource-list/definition-of-roi---return-on-
investment.html?ou=622270)

Economics of the Cloud: Employment Effects in Two
Exemplary
Sectors in the USA, the UK, Germany and Italy
cca610/learning-resource-list/economics-of-the-cloud--
employment-effects-in-two-exemplary-sect.html?ou=622270)
© 2022 University of Maryland Global Campus
All links to external sites were verified at the time of
publication. UMGC is not responsible for the validity or
integrity
of information located at external sites.
Resources
https://leocontent.umgc.edu/content/scor/uncurated/cca/2218-
cca610/learning-resource-list/a-service-brokering-and-
recommendation-mechanism-for-better-sele.html?ou=622270
cca610/learning-resource-list/cloud-vs--on-premise-
network.html?ou=622270
cca610/learning-resource-list/definition-of-roi---return-on-
investment.html?ou=622270
cca610/learning-resource-list/economics-of-the-cloud--
employment-effects-in-two-exemplary-sect.html?ou=622270

1/18/22, 11:58 PM Business Requirements
1/4
Learning Topic
Business Requirements
A requirements analysis involves a systematic evaluation of
needs derived from a
company's business goals and strategy. One approach to
determining requirements
involves the classification of functional and nonfunctional
system requirements.
Functional Requirements
Functional requirements are at the heart of systems or
technology development.
Functional requirements specify the behavior of a system and
determine what the system
should do. These requirements are developed well before the
acquisition or development
of systems. The activity can be performed during the system
design and can be
application- or architecture-driven. For example, a functional
requirement for a calculator
would be "must be able to add, subtract, multiply, and divide
numbers."

Typical functional requirements are (Eriksson, 2012):
business rules
transaction corrections, adjustments, and cancellations
administrative functions
authentication
authorization levels
audit tracking
external interfaces
certification requirements
reporting requirements
historical data
legal or regulatory requirements
2/4
These rules determine things such as operations, systems
reports, and workflow. These
requirements are also the determining factor when evaluating
system compliance.

Typically, the flow of functional requirements incorporates such
things as user request,
feature, use case, and business rule.
Examples of Functional Requirements
User request: I need to send secure messages in the new
application.
Feature: End-to-end encryption when sending messages.
Use case: This feature will be enabled when the application
sends communications
to the database.
Business rule: All encryption must be FIPS 140-2 compliant.
Nonfunctional Requirements
Nonfunctional requirements specify how the system will support
the functional
requirements. They may include ways of verification of
functional requirements
fulfillment, as well as any remaining requirements that are not
covered by the functional
requirements.
While functional requirements are necessary to make the system
or component work

nonfunctional requirements can determine how well the system
or component works
because they describe the "quality characteristics" or "quality
attributes" of the functional
requirements (Eriksson, 2012).
Typical nonfunctional requirements include (Eriksson, 2012):
performance (e.g., response time, throughput, utilization, static,
volumetric)
scalability
capacity
availability
reliability
recoverability
maintainability
3/4
serviceability
security
regulatory

manageability
environmental
data integrity
usability
interoperability
Examples of Nonfunctional Requirements
Availability: The Online Payment System will be available for
users between the
hours of 5:00 a.m. and 11:00 p.m. EST.
Capacity: Up to 1,000 total users can use the system.
Maintainability: Changes required by law will applied at least 3
months before the
law becomes enforceable.
Reliability: Will be available to users 98 percent of normal
working hours.
Security: Only users with the role "Administrator" or
"Supervisor" can make changes
to the system.
References
Eriksson, U. (2012, April 5). Functional vs. non functional

requirements [Blog post].
Retrieved from http://reqtest.com/requirements-blog/functional-
vs-non-
functional-requirements/
Requirements. (n.d.). Non functional requirements. Retrieved
from
http://www.requirements.com/glossary/nonfunctionalrequiremen
ts/tabid/91/def
ault.aspx
4/4
Cloud Computing and Information Technology Strategy
cca610/learning-resource-list/cloud-computing-and-information-
technology-strategy0.html?ou=622270)
integrity

Resources
cca610/learning-resource-list/cloud-computing-and-information-
technology-strategy0.html?ou=622270
Chapter 3 Section 14: SWOT Analysis: Strengths, Weaknesses,
Opportunities, and Threats by Val Renault from Community
Tool Box is available under a Creative Commons Attribution-
NonCommercial-ShareAlike 3.0 United States license. © 2016
Community Tool Box. UMGC has modified this work and it is
available under the original license.
SWOT Analysis Template
STRENGTHS
1.
2.
3.
4.
WEAKNESSES
1.
2.
3.
4.
OPPORTUNITIES
1.
2.
3.
4.
Opportunity-Strength (OS) Strategies
Use the strengths to take advantage of opportunities
1.

2.
Opportunity-Weakness (OW) Strategies
Overcome weaknesses by taking advantage of opportunities
1.
2.
THREATS
1.
2.
3.
4.
Threat-Strength (TS) Strategies
Use strengths to avoid threats
1.
2.
Threat-Weakness (TW) Strategies
Minimize weaknesses and avoid threats
1.
2.
Chapter 3 S
ection 14: SWOT Analysis: Strengths, Weaknesses,
Opportunities, and Threats
by
Val Renaul
t
from
Community Tool Box
is
available under a
Creative Commons Attribution
-

NonCommercial
-
ShareAlike 3.0 United States
license. © 2016 Community Tool Box.
UMGC
has modified this work and it is available under the original
license.
STRENGTHS
1.
2.
3.
4.
WEAKNESSES
1.
2.
3.
4.

OPPORTUNITIES
1.
2.
3.
4.
Opportunity
-
Strength (OS)
Strategies
Use the strengths to take advantage
of opportunities
1.
2.
Opportunity
-
Weakness (OW)
Strategies
Overcome weaknesses by
taking advantage of
opportunities
1.
2.
THREATS

1.
2.
3.
4.
Threat
-
Strength (TS) Strategies
1.
2.
Threat
-
Weakness (TW)
Strategies
Minimize weaknesses and
avoid threats
1.
2.
Chapter 3 Section 14: SWOT Analysis: Strengths, Weaknesses,
Opportunities, and Threats by
Val Renault from Community Tool Box is available under a
Creative Commons Attribution-

NonCommercial-ShareAlike 3.0 United States license. © 2016
Community Tool Box. UMGC
has modified this work and it is available under the original
license.
STRENGTHS
1.
2.
3.
4.
WEAKNESSES
1.
2.
3.
4.
OPPORTUNITIES
1.
2.
3.
4.
Opportunity-Strength (OS)
Strategies
Use the strengths to take advantage
of opportunities
1.
2.
Opportunity-Weakness (OW)
Strategies
Overcome weaknesses by
taking advantage of
opportunities
1.
2.

THREATS
1.
2.
3.
4.
Threat-Strength (TS) Strategies
1.
2.
Threat-Weakness (TW)
Strategies
Minimize weaknesses and
avoid threats
1.
2.
1/18/22, 11:58 PM Critical IT Requirements Related to Data
Storage
Learning Topic
Critical IT Requirements Related to Data
Storage
Security rules and procedures protect information and systems
from unauthorized access,
use, disclosure, disruption, modification, or destruction.
Examples of IT requirements that
support secure data storage include the following (Niels,
Dempsey, and Pillitteri, 2017):

Data Protection
Encryption of data (at rest and in transit)
Encryption transforms intelligible data, called plaintext, into an
unintelligible form,
called ciphertext. This is reversed through the process of
decryption.
Appropriate security technologies
e.g., intrusion detection and protection systems, firewalls,
configuration settings
Audit Trails
Records of system activity, including information on system
processes, application
processes, and all user activities, should be maintained. These
records could be used to
find security violations, application flaws, and/or understand
performance problems
within the system.
Separation of Data
Separation of data in this context means that individual clients
may require that their data
be stored in an environment that is either logically separated
using software or physically

separated using hardware isolation.
Separation of Duties
1/18/22, 11:58 PM Critical IT Requirements Related to Data
Storage
Separation of duties is the process by which roles specific to
handling sensitive systems
and data are segmented so that no single individual has total
control of—or access to—a
system. Separation of duties can reduce insider threats by
limiting the access any one
individual has to a system. Such separation can also serve as a
checks and balances
system for security. This differentiates the individuals who
design or test a system from
those who conduct security testing or monitoring.
References
Niels, M., Dempsey, K., & Pillitteri, V. Y. (2017). NIST special
publication 800-12 Rev. 1: An
introduction to computer security: The NIST handbook.
Retrieved from
https://doi.org/10.6028/NIST.SP.800-12r1. In the public
domain.

integrity
Cloud Computing: BallotOnline
CCA 610: Cloud Services and Technologies
The delivery of various services via the internet is referred to as
cloud computing. The resources usually used in cloud
computing involve the storage capabilities, databases, software,
the network, servers, among others, which are essential tools to
enable cloud computing to take place effectively and efficiently
(Ahmed, 2016). Cloud computing calls for electronic devices to
access the internet, the data server, and the existing software
programs to allow the operations. Some popular cloud service
providers include Microsoft Azure, Google Cloud, and AWS.

The essential basic capabilities of the cloud include on-demand
access. Others include the internet, which links (Ahmed, 2016).
The computing resources must also be available, which is
normally an application. In addition, there must be a virtual and
a physical server available that acts as servers. The essentiality
of the servers and part of the basic capabilities should not be
ignored. The data need to be stored, hence making the storage
capacity available. Others include networking tools and
development tools (Ahmed, 2016). It is via cloud computing
that the future of the ballot online remains bright since it i s
known to advocate for the growth and not the expansion of the
current infrastructure. It is normally hosted in or at a remote
data center whose management is from the cloud service
providers. Via cloud computing and cloud storage, transactions
can be done at a lower cost and a great speed, preserving the
cloud resources.
Some of the advantages associated with cloud computing
include excellent accessibility. There has been quick and easy
access to the stored information from everywhere cloud
computing. In addition, there is an aspect of the low cost of
maintenance. Via cloud computing, the companies are likely to
enjoy a reduction in hardware and software maintenance
(Sether, 2016). The other advantage is mobility, where the
mobile as a tool can access data in all the clouds and easy
accessibility. Via cloud computing, another advantage is the
unlimited storage facility and capability where a large or
voluminous amount of data can be stored, which may be
essential. Some stored data in clouds include the audi os,
images, and documents.
There is an element or an aspect that touches on the security of
data (Sether, 2016). Cloud computing is secured against
possible threats and risks to the data. Despite cloud computing
being associated with many advantages, there are disadvantages,
including some. The internet connectivity, at times there could
be internet failures and network, and inconsistent network
coverage hence may render the services unavailable most of the

services in the cloud computing are accessed via the internets
(“Figure 6.4 reasons businesses do not use cloud computing,
2014, 2019”). Another disadvantage is the vendor lock-in .at
times. It is challenging to transfer data and services from
vendor to vendor since they use different platforms, hence the
biggest challenges. The other disadvantage is the limited
control. Cloud computing as infrastructure is fully owned and
managed by the service providers. The users of the services
have limited access and control. In cloud computing, security is
an essential component and a requirement in information. The
information can be hacked and be compromised ("Figure 6.4
reasons businesses do not use cloud computing, 2014," 2019).
Despite upgraded security platforms in the security, there have
been incidences that data have been hacked and compromised.
The budget set aside by the company and the possible benefits
makes it important to adapt to cloud computing to reap the
benefits. The weakness is few and cannot outdo the advantages.
The economic impact analysis refers to the methodology for
evaluating the impacts from the projects, the policy on the
economy of a specific region, and programs. For example, cloud
computing is known to impact the economy positively and
negatively by allowing easy access, securing information and
data, creating employments, and improving the infrastructure
(Alimonti, 2021). It is economically sound over time since the
revenue projection of the ballot online keeps on increasing, the
IT budget is an insignificant percentage. The revenue of $100.8
million has an IT budget of 10 percent equaling ($10.8 million).
Since the percentage required keeps on decreasing as the year
goes, the revenue collected keeps increasing and hence can be
well served by the impact analysis. The economic impact
analysis projects that there is a tendency that the ballot online is
going to enjoy more from the fact of adopting to the cloud
computing, especially on storage and other software. The
negatives include the distortion of information or data and
hacking. The analysis is important as it shows the impact on the
cost of operation, income, jobs, and competitive productivity.

Table 1: BallotOnline budget for the next 5 years
Table 1 is showing the IT budget for the next 5 years. The
organization’s executive leadership has declared that the IT
budget will be cut by 5% over the next five years. This
translates to a 1% reduction in the IT budget every year for the
next five years. IT management has been tasked with
determining the best recommendation and most cost-effective
method for ensuring that the current IT infrastructure meets
business objectives while also reducing the IT budget to 5% of
annual revenue projections over the next five years.
Table 2: Total on-premises cost breakdown vs Total Azure cost
breakdown
This table illustrates the breakdown comparison between the on-
premises and Azure cost. Several cost categories from the on-
premises environment are consolidated in Azure and reduced as
a result of the cloud's efficiency.
So, after doing the calculation, the estimated cost of running IT
infrastructure on BallotOnline's premises for the next five
years, according to the Microsoft Azure TCO calculator, is
$46,213,390. BallotOnline will spend $16,135,160 over the next
five years on Azure cloud-based services. This means that if
BallotOnline uses the Azure cloud-based service instead of an
on-premises solution, they will save about $30,078,230. For
BallotOnline, a cloud-based IT solution is a viable option.
References
Ahmed, R. (2016). Introduction to cloud computing and the
application project. Cloud Computing Using Oracle Application
Express, 1-8. https://doi.org/10.1007/978-1-4842-2502-8_1
Alimonti, R. (2021). Digital markets and implications for
competition policy: Evidence from recent economic

analysis. Economic Analysis in EU Competition Policy, 112-
145. https://doi.org/10.4337/9781800370197.00014
Figure 6.4 reasons businesses do not use cloud computing,
2014. (n.d.). https://doi.org/10.1787/888933586388
Sether, A. (2016). Cloud computing benefits. SSRN Electronic
Journal. https://doi.org/10.2139/ssrn.2781593
STEP 1: Define the IT Business Requirements
Your presentation must address BallotOnline'sbusiness
requirements and critical IT requirements related to data
storage. Make sure you classify the requirements into functional
(behavior) and nonfunctional, as per the requirements definition
link.
The business requirements should be explicit directives
specifying what the solution should deliver for the business,
formulated using imperative language (system should, or must,
or will do this and that) rather than a general description of
cloud solution features.
STEP 2: Prepare a SWOT Analysis
In this step, you will apply the information gathered in the
business analysis to assess the benefits and possible drawbacks
of adopting cloud infrastructure for BallotOnline.
Your supervisor, Sophia, recommends that you include a SWOT
analysis in your presentation, since the BallotOnline company
executives will want you to go over both the advantages and
disadvantages of cloud adoption and any important internal and
external factors that may influence the success of the project.
Take Action
Demonstrate your critical-thinking abilities by identifying the
strengths, weaknesses, opportunities, and threats of adopting
cloud computing.
First, articulate each of these areas for the SWOT analysis:
1. Identify the key strengths (advantages) of adopting cloud
computing.
2. Identify the major weaknesses (disadvantages) of adopting

cloud computing.
3. Are there any opportunities that cloud computing enables the
organization to take advantage of?
4. What are the threats that an organization considering
adopting cloud computing needs to consider?
Next, evaluate how to achieve the following outcomes to add to
the SWOT analysis:
1. How can you use strengths to take advantage of
opportunities?
2. How can you overcome weaknesses to take advantage of
opportunities?
3. How can you use strengths to avoid threats?
4. How can you minimize weaknesses and avoid threats?
Use the SWOT analysis template to organize your ideas.

11822, 1157 PM Building a Business Case for Cloud Computing

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