Cloud Computing Implementation Report: A Business Strategy

This report analyzes a medium-sized retail company's transition to cloud computing. The company, with multiple store locations, aims to improve customer service, increase productivity, reduce costs, and enhance its computerized environment. The report outlines the current IT infrastructure, including hardware, software, and communication systems, and proposes a hybrid cloud model to meet the company's goals. It details various cloud service models (SaaS, PaaS, IaaS, etc.), benefits of hybrid cloud, cost considerations, and risk assessments. The report includes a step-by-step implementation plan, covering infrastructure assessment, platform selection, security policy updates, migration strategies (parallel running), employee training, and post-migration evaluation. The goal is to enhance the company's competitive edge and provide better customer service through a flexible, scalable, and secure cloud environment.

The company that I choose to do this report on is a medium company, which has 10 stores in
Werribee, Hopper Crossing, Laverton and Geelong. The main office, where Suzy the
manager works is in Werribee.
Suzy sits in the main office along with the HR officer, the accountant and the business
manager, who manages the company’s sales office.
Each has his own desktop computer and the sales managers have phones and laptops.
They work based on cash and credit.
Each office has its own POS system. Reports are sent once a week.
Each store sales manager communicates with the head office sales management and send
back orders, client communications, ongoing bills and expenses, etc.
The company’s goal is to integrate all stores ongoing communications into cloud computing
and later on to expend it to cater online sales, as well.
The first step is to conduct a meeting with all managers from all stores.
In this meeting we will discuss the current and future goals for the company, which are:
1. To provide a better customer service
2. To increase productivity
3. Reduce ongoing costs
4. Be as competitive as possible
5. Provide a better computerized environment, with an easy access and ease of use
6. Allow service flexibility which accommodates and supports future changes and
growth
7. Expend the company’s market and its customers base
A third-party advisor will attend the meeting to discuss the benefits of switching to cloud
computing. He will talk about the storage, network, services and applications. If time allows,
we will compare between the different cloud platforms options available.
The services that will be introduced are:

1. XaaS (Anything-as-a-Service)
Refers to a service that is available through internet.
2. Software-as-a-Service (SaaS)
Refers to a software that is managed by the vendor and the client can access it using
subscriptions. The company uses it for the office and emails through public cloud computing.
3. Platform-as-a-Service (PaaS)
Refers to rented physical resources, operating system or environment provided by the vendor.
This means that the customer develops their own software using the tools from the vendor.
4. Infrastructure-as-a-Service (IaaS)
This refers to a space that the company leases to supports its operations. This includes
storage, hardware, servers and networks components. The company uses and runs its own
software on these leased resources.
5. Public Cloud
They are owned and hosted by a third party, which provides public computing accessibility.
There is no need to purchase anything other than internet connectivity and license
subscription, as everything ales is managed and maintained by the provider.
6. Private Cloud
Refers to a cloud computing infrastructure that is privately used by the company, and the
maintaince is done by the company itself or by a third-party provider. It is more secured then
the public cloud, as it is privately hosted.
7. Hybrid Cloud
It’s a combination between public and private cloud, which provides more flexibility to the
company/users and more control over the location of the services and the data stored in them.
8. Community Cloud
Refers to a cloud computing infrastructure, where several companies share the same goal/idea
and use the same computing infrastructure.
Before we start, we need to provide an accurate review report that states what the current
computing elements in the company such as hardware, software, storage, security and
internet data use. With this report we can analyse the company’s goals and needs for the
future and see if the current states of computing in the company is sufficient or whether we
need to add, change or relocate some resource from one department to another. By knowing
and understanding the company’s goals and expectations for the future, we can map the
computing needs for the specific goals and decide on the preferred solution.

When deciding to change to cloud computing, we need to take under consideration additional
costs involved, such as:
1. Operation costs: even though we don’t need to spend money on physical servers, we
need to pay for software upgrades, IT personnel, who will need maintain the servers
and apply monthly patches, etc.
2. Direct and indirect costs: It is the software and infrastructure that will turn into being
consumables. As well as indirect costs due to service shut down for migration
purposes.
3. We need to take under consideration any possibility of service failures and data loss
when switching to a new environment. So, backups are required to be taken in
advance.
4. Platform costs: The service and maintenance running costs.
5. Backup and archive costs: each company has a different level of backups and
maintenance. These costs need to be taken under consideration.
The company chose to use the hybrid model as multiple providers work together to deliver a
combined service of public and private ones.
The advisor has laid down the benefit of using the hybrid cloud computing as:
1. It is an infrastructure that is suitable for the current company’s size and for their goal
to expend in the foreseen future.
2. The hybrid structure will work best for them, as it will provide comfortable
infrastructure for users and clients to use.
3. Flexibility and scalability – The infrastructure will be cost beneficial for the company,
allow easy and secured access and will offer access to public resources, to maximise
their customers availabily.
4. Cost – It reduces management and computer expenses.
5. Security – All the company’s sensitive material will be kept locally that goes hand in
hand with regulations and still save money through cloud services availability.
6. Performance and agility – when you use the existing connectivity of the hybrid cloud
computing, you are able to transfer application between the private and public
infrastructure cheaper.
7. Accessibility – You can access it from any internet ready device at any time. This will
help the company maintain and upgrade its competitive edge and provide a workflow
of customer service.
We also need to assess the risks, such as:
 Quality – does the cloud solution meet stakeholder needs;
 Financial – does the cloud solution provide value for money;
 Organisational – does the cloud solution work within the agency’s culture;
 Integration – can the cloud solution meet objectives without business or technical
integration difficulties;
 Compliance – does the cloud solution comply with agency’s legal, regulatory and policy
obligations;

 Business Continuity – can the cloud solution recover from outages or disaster situation; and
 External – is the CSP performance adequate
(was taken from - https://www.finance.gov.au/files/2012/09/a-guide-to-implementing-cloud-
services.pdf)
To make a plan for introducing the cloud computing to the company, I will:
1. Know what the company’s goals and expectations are
2. Be familiar with the current company’s computing infrastructure, including all
relevant information such as model, type and location
3. Make a list of all required hardware, software, internet and training needed
4. Select which platform will serve best for this business
5. Make sure I follow all security policies in the company including legislations
6. Search and choose the cloud computing provider that will provide the best services
and will provide competitive costs
7. Make sure the company complies with the provider in terms of services, storage and
security
8. Decide with the company, who will be in charge of maintenance, backups and
upgrades and will deal with any required future service outages.
9. Choose the right way for the company to migrate the system. Choose a system that
will gradually increase the use of the infrastructure and will allow time for problem
solving, as well as provide ongoing help, assistance and training for all employees.
When migrating a new infrastructure, we need to test it first in a control environment and
make sure that all errors tackled are fixed. We need to allow enough time to do so before the
specified due date and before moving to migrate the production environment.
We also need to plan the training that employees will need to take and therefore we need to
let them know about the change, expected to happen, why we decided to do so, the benefits of
the move and provide them with the main motivation of the move.
We can use newsletters, emails as well as providing hard copy for them to read. We will need
to evaluate and assess what is the level of training is required for each.
After conducting the test pilot of the system in a controlled environment and fixing all the
bugs and faults encountered, we will need to decide how to implement the change.
There are three main ways to do so:
1. Direct changeover – which means that on an agreed date the company will start
working on the new system while the old one will still be in use.
2. Parallel running – which means that both systems, old and new, will run in parallel, so
that employees will still be able to work on the old system while adjusting to the new
one.
3. Phased changeover – which means that we set a few leaner phases in the course of the
entire migration process and once each phase is done, verified and confirmed, the
same phase on the old system is eliminated and we move the next phase.

The company choose to implement the migration by using the parallel running, as they came
to the conclusion that a change over time will be more beneficial to the business (employees
and clients) and it will be easier for all employees to receive the proper training required and
make them feel more comfortable to use the new system.
Before we migrate to the new system, the company will revise and update their security
policy and the use of information. It will determine, who will access the cloud, who can
upgrade and maintain the system, what are the levels of trust, use verifications and strong
passwords, use anti-viruses and make sure that all are compliant with the law and legislations.
The company will provide support when implementing the new system.
They will provide training in different levels:
1. Will conduct off site professional development sessions that include formal
explanations and a workshop.
2. Mentoring options to ensure that all employees understand the new system and are
able to carry on with their work appropriately.
3. Have professional discussions and meetings to work on new issues, seek answers and
help other members to gain more confidence and understanding of the new system.
After the migration is finished, we need to evaluate and asses the migration process and see if
all went well, what is still outstanding and needs to be added or changed and for what reason.
We need to know if the change has contributed to the company’s competitive edge and if
anything, else is required rectification.