Discuss about the Information Management for Granol Pic.
Cloud computing is an environment where the computing needs of one party is outsourced to another party that has specialized in offering such services as computing resources in databases, servers and storage applications among others, access these services over the internet. In this approach therefore, the computing needs of a party that outsources this vital operation is moved from its PCs and desktops to a large and remote data center. Basically, the word “cloud” originates from this model of computing where services are accessed over the Internet (hence the “cloud”). This is a new trend that is picking up fast and revolutionizing information management in the 21st century in a big data model of IT management. The most important advantage of cloud computing is that customers no longer have to pay for the infrastructure, or installation, or even for the man power required to implement the model. Additionally, the company that embraces this technology is set free from maintenance costs of the IT system.
Today, cloud computing solutions are offered on a managed service plan. In this plan, a company specializing in cloud services takes IT risks of a firm that sub-contracts it to manage its IT needs. The latter then provides a consideration for these services on a pay-as-you-go or subscription basis. This report analyzes the benefits and challenges of cloud computing and managed services and provides recommendation on best practices that could help Granol Pic overcome its information management challenges as it plans to expand abroad.
This section presents an overview of cloud computing and managed services including benefits and challenges that arise from the two. Additionally, the section also offers an adoption and implementation/integration strategy for any choice of cloud solution that aligns with GranolPic’sbusiness model and mode of operations.
The word “cloud” originated from the use of Virtual Private Networks (VPN) to accomplish data transmission and communication. Today, cloud computing is known to deal with a number of computing needs that range from computation itself, software use and data storage and access from anywhere. In undertaking these activities, the end-user does not need to have knowledge of the infrastructure or the architecture as well as how the resources have been configured. National Institute of Standards and Technology(NIST, n.d) provides a definition that succinctly captures important features of cloud computing: provides a convenient and on-demand network access to shared pool of configurable resources in a model that requires little management effort or an interaction with the service provider. The goal in this is to enable use of distributed computing which combines various configurable resources for a greater throughput for solving large-scale computing needs. There are several organizations providing cloud computing services such as Google, Amazon and IBM among the big names. As the market is expanding and more companies begin to adopt this technology, more cloud computing specialist organizations are emerging, all with varied offers and solutions (Almutairi&Ghafoor, 2014).
The first advantage of cloud computing is its interoperable nature. Users of this service can access the services from any device by simply using a web browser of their choice. Third-party infrastructures from which cloud services are accessed enable this access via an internet connection. In short, the user does not need to worry about the vendor from which to obtain computational equipment or device. This also means that users can make use of as many different vendor devices as possible. Additionally, the access can be done from any geographical location and this adds to the convenience.
Second, cloud computing is quite cheap. It helps to lower capital investment in IT. This comes from the fact that the end-user only needs to have a device that can access data and other cloud-related services over the Internet. There is no need of acquiring expensive computing resources such as servers, storage applications and more. All these are provided by the cloud computing specialist organization. The provider builds the infrastructure and inquires all costs of implementation on behalf of the user so that the user does not even have to worry about the underlying infrastructure.
Another advantage and the third one in this case is the little skills required to implementing cloud computing within an organization. Since most of the work has already been done by the service provider, there is little left to be done by the end-user who must only have a device with Internet access and little computing skills to retrieve required from the networked servers (Almutairi&Ghafoor, 2014). This further lowers the cost of operating IT by making it needless to employ many IT experts. Apparently, most employees know how to browse for information over the Internet and this adds to the convenience of implementing cloud computing.
Fourth, with cloud computing, IT risks are spread to the service provider who shoulders all uncertainties and challenges that surround cloud computing solutions. Downtimes which may occur at one moment or another do not cause much alarm to the end-user who has had all that covered in the contract. Similarly, the provider also undertakes maintenance costs for the IT infrastructure.
Needless to say, with such a large collection of users, efficiency in the use of computing resources is highly optimized. In the case of an in-house IT infrastructure, a server may potentially be underused and this adds to the overall costs for underutilized capital investments. Finally, cloud computing makes performance much scalable because of some high level of reliability on the service provider network is achievable
Two key challenges with cloud computing are security and privacy issues (Rhoton&Haukioja, 2011). Security has to do with the level of integrity of data in the remote networked servers. This one among other reasons has seen most firms hesitant to adopt cloud computing as an option to IT management system. This issue arises more specifically with confidential data and information. Some companies that have delayed the adoption of cloud solutions suppose that it may be that a service provider is unable to keep all the vital information of their respective firms under lock and key. However, on a comparative level with traditional approaches, the security of data on cloud servers is higher given that this is the strategic point of maintaining market and clients for cloud service providers.
On privacy, some users feel that anywhere accessibility can compromise privacy of users. Cloud service providers tackle this challenge through various approaches including implementation of authentication techniques as well as provision of authorization for legitimate users of their web servers. Others concerns have to do with reliability and data resiliency. Data resiliency has often been ensured by a way of increasing replication time for data. Reducing downtimes on cloud servers is the only way to remain reliable to users (Singh, Powles, Pasquier, & Bacon, 2015).
The term “managed service” is used in different ways depending on the type of services provided and the business model supported by these services. Generally, managed service is the process of outsourcing part or all of IT management responsibilities to a managed service provider on a pay-per-use or subscription plans (Singh, Powles, Pasquier, & Bacon, 2015). This definition leads to a conclusion that managed service does not essentially mean that an organization must give up its IT management responsibilities. A company may decide to subcontract a managed service provider for part of its IT management and retain the other in-house. The concept here is that a managed service provider works closely with the outsourcing organization to understand its IT needs and thereafter agree on the model of service delivery and payment plans. In one case, the provider may take up all responsibilities that had initially been the mandate of internal staff, while another it may be that the provider is only contracted to offer a given service that may be cost-effective when outsourced than when undertaken in-house.
Managed services are become prevalent IT management solutions with many firms giving up IT management responsibilities to focus more on the business operations. The uptake of this trend in IT management is attributed to various incentives and benefits it offers to companies, especially with regards to level of efficiency, cost-effectiveness and risk spreading capabilities (Bhardwaj& Kumar, 2014). Since IT is strategic to remaining competitive, many businesses look out for ways to leverage this important operation and to lower capital investment in this area. Pressure from consumers also adds to the reasons for need for managed services. Consumers continually push firms to offer more value for less. This necessitates strategies to minimize costs of operations, improving level of efficiency in carrying out business activities and while doing all these, always being keen on meeting and even exceeding consumer expectations.
Managed Services are offered fewer than four main categories: plan and design; build; hosting; and operate (Mindtree, 2014). Under Plan and Design, a managed service provider (MSP) plans, designs, develops and implements business applications and systems, networks and functions among other vital IT services. The provider may also design data recovery plan and backup for the organization in question. This is often for those cases where a firm did not have an established IT function to have implemented some of these vital processes. Build category involves evaluation of the technology in use, integration of this and implementation of network systems, support systems and maintenance approaches. On the third category, Hosting, a business outsource an entire IT infrastructure to a managed service provider who is in turn charged with performance and application availability responsibilities, leaving the business to concentrate on its core business strategies and leadership in the market. Finally on Operate category of managed services, an organization outsources to manage service provider the day-to-day IT activities and operations. These may encompass such areas as email services, business application systems, network maintenance, network operation, management of vendor contracts and desk services among others. The nature of the contract will decide which category the managed service level will be put.
From the discussion in the foregoing, it is apparent they are many opportunities that come with cloud computing. Organization can tap into these opportunities through a managed service provider (MSP). However, an MSP delivers the cloud computing services to the organization that outsources its IT responsibilities to it through three basic cloud technologies including Software as a Service(SaaS), Platform as a Service(PaaS), and Infrastructure as a Service(IaaS) (Hurwitz, 2009). Among these three types, Software as a Service would be the most appropriate for Granol Pic. Many authors have supported that claim SaaS offers most utility because of business economics and user preferences (Ferdowsi, 2011). These attributes are associated with the level of application and data availability. There are quite many managed service providers who offer cloud computing solutions based on SaaS model among them Google Apps, SalesForce.com, Office 365 from Microsoft and Accenture.
Looking back at the options available for Granol Pic, Accenture would offer the most appropriate managed services for the company. Granol Pic requires outsourcing substantial part of its IT responsibilities in order to realize its goal of improving efficiency at lower operation costs and capital investment. At the same time, the company must also put into account possible internal resistance to this transformation. Accenture offers a better approach to managing transformation through a service-driven model(Accenture, 2014). The model basically consists of a set of services that emphasizes process excellence and ongoing improvement. In order to realize value out of the transformation, Accenture will also offer the most effective governance and process standardization. In the transformation, it would also be important for Granol Pic to keep in-house its strategic decision points.
Accenture’s hybrid engagement model will offer both onshore and offshore components that will ensure high cost-effectiveness and more importantly, the opportunity to have both “cloud” and on-site capabilities for information management system (Babu&Krishna, 2013)Finally, Accenture’s Lean Six Sigma Virtual Coaching will provide employees with the much needed hands-on experience to address skills gap for change management issues.
Conclusion
It is apparent from the report that cloud computing could offer potentially many opportunities to address the challenges that face Granol Pic as the company plans to expand its operations abroad. One way to ensure proper mitigation against unforeseen challenges in foreign economies, the company must ensure its operation costs are lower than now. With cloud computing through a managed service provider, the company stands a chance to drive its capital investment and operations much lower while optimizing its service levels. Among many MSPs, Accenture provides a better transformation approach that factor in other considerations such as change management issues. The report thus recommends this firm as an option should Granol Pic consider managed services for cloud computing.
References
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Babu, L. & Krishna, P. (2013). Applying operations management models for facility location problem in cloud computing environments. International Journal Of Services And Operations Management, 15(1), 1. https://dx.doi.org/10.1504/ijsom.2013.053252
Bhardwaj, A. & Kumar, V. (2014). Identity management practices in cloud computing environments. International Journal Of Cloud Computing, 3(2), 143. https://dx.doi.org/10.1504/ijcc.2014.062271
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Ferdowsi, Z. (2011). Accenture Technology Labs.XRDS: Crossroads, The ACM Magazine For Students, 18(2), 46. https://dx.doi.org/10.1145/2043236.2043254
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Singh, J., Powles, J., Pasquier, T., & Bacon, J. (2015). Data Flow Management and Compliance in Cloud Computing. IEEE Cloud Computing, 2(4), 24-32. https://dx.doi.org/10.1109/mcc.2015.69
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