Cloud Storage Adaptation - Telelink “As-Is” Environment Report

This report examines the cloud storage adaptation strategy for Telelink, a telecommunications organization in Auckland. The report begins by assessing Telelink's "As-Is" environment, detailing its traditional business processes, underlying technologies, and total cost of ownership (TCO), including labor costs. It then evaluates and selects an appropriate cloud solution, recommending Amazon AWS, and outlines the procedure for cloud solution selection. Critical assumptions, constraints, and methods for migrating on-premise servers to the cloud are discussed. The report quantifies costs, investments, and strategic opportunities, validating the business case through return on investment (ROI) analysis and assessing the quality of services. Finally, it reflects on the overall business case by comparing the "As-Is" environment with proposed cloud storage options, including a "do nothing" scenario, partial cloud migration, and complete migration.

Running head: CLOUD STORAGE ADAPTATION - TELELINK “AS-IS”
ENVIRONMENT
Cloud Storage Adaptation for Telelink “As-Is” Environment
Name of the Student
Name of the University
Author Note

1CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
Table of Contents
Introduction................................................................................................................................2
A. Telelink “As-Is” Environment..........................................................................................2
Background of the case study............................................................................................2
Underlying technology.......................................................................................................3
Total cost of ownership including the cost of labour.........................................................3
Governance and organization.............................................................................................4
Risk Management...............................................................................................................5
B. Evaluation and selection of the appropriate Cloud solution and deployment model........5
Cloud solution selection procedure....................................................................................5
Short Overview of the selected Cloud Service provider....................................................6
C. Critical Assumptions and Constraints...............................................................................6
D. Methods for the migration of the on-premise servers to Cloud........................................7
E. Quantifying cost, investment and strategic opportunities..................................................7
F. Validation of the business case..........................................................................................8
Return on Investment.........................................................................................................8
Quality of Services.............................................................................................................8
G. Reflection of the overall business case of the following options......................................9
i) Do nothing......................................................................................................................9
ii) Migrate critical aspect of the business to cloud.............................................................9
iii) Considering the total migration procedure and comparison of the Telelink “As-Is”
Environment with proposed cloud storage environment...................................................9
References................................................................................................................................11

2CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
Introduction
Telelink has been identified as a medium sized telecommunications organization in
the city of Auckland, that mostly deals with various telecommunications programs that
includes the conducting of the surveys, the taking of orders for products, mailing out of the
information kits and the provision of the other reception and the 0800 services. The
organization is right now dealing with the services such that it has made the organization to
be one of the leading organizations established as a contact centre in entire New Zealand. The
organization also helps in other services like the database management, customer retention,
lead generation and processing of different payment related works that mostly deals with the
technologies like texting, internet and emails. However, of all the services that Telelink offers
its customers, there is no provision for the inclusion of any sort of proper cloud-based
environment for the services to the customer for the organization (Martino, Cretella and
Esposito 2017). This is why, the organization has to get together the utility of a CIO in the
organization that mostly deals with the creation of a holistic approach and a coherent
roadmap that would help in the utility of the proper plan that would help in identifying how
the organization can implement a cloud environment and keep up with the existing traditional
business operations. The implementation plan would cover the existing or “As-Is”
environment of the organization, the proper planning and a developed business case, along
with all the relevant information that would be recommended for the organization to properly
implement the cloud systems. In addition to that, a reflection would also be presented based
on the developed plan and the presentation of the business case that would have a proper idea
about how the organization would be moving on the right path with the implementation of the
chosen plan.
A. Telelink “As-Is” Environment
Background of the case study
The organization that is being talked about is Telelink, which is one of the leading
telecommunication organizations in New Zealand. The organization had a traditional
business process system that is undergoing several changes because the business right now
has the traditional business process that is already providing services to the customers all over
New Zealand. The services include the conduction of surveys, the taking of orders for
products, the mailing out of the information kits, the provision of receptions and the 0800
services (Jain and Pang 2017). The other services of the organization also include the

3CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
database management, lead generation, customer retention, processing of the payments
related to the works and provision of the technologies that would include the internet, email
and texting services. Therefore, the “As-Is” business environment of the business
organization would mean the existing business process that is currently being followed. All of
the services that has been mentioned as above has been considered as the inclusion to the
“As-Is” environment for Telelink that is going to be changed with the implementation of the
cloud services for handling all the traditional business processes that the organization
follows.
Underlying technology
The basis or the underlying technology that is currently being followed in the Telelink
organization in Auckland is the internet telecommunications technology that mostly uses the
Internet services for the Information and Communication Technology as its basis for
operation. Since, the organization provides the customer with the 0800 telecommunication
services, which is the distinguish of the telecommunication organization that provides its
customers with a calling service that is absolutely free of charges on the number at any point
of time, to which the organization would bear all the charges for (Singh and Dutta 2018). The
report about the total time that the customers have spent over calling on the free services
number is collected with the help of reporting and monitoring systems on how long has been
the calls done by the customers. The basic technology includes the telecommunication
services that is provided to the customers with the help of the Internet and
Telecommunication features with effective capacity of the exchanging of information about
the data that the clients use and the services that Telelink provides the customers (Bidgoli
2018). This is why, the organization is thinking about the cloud implementation system as the
entire “as-is” system is running on the manually handling of the automated physical
information and management system aided by the Information and Communication
Technology.
Total cost of ownership including the cost of labour
For the total cost of ownership, the concept behind the cost of ownerships needs to be
reflecting upon the Telelink services. This would include the prices that the organization has
invested on the purchasing of the assets and also the costs included for the management and
handling of the assets that have been bought for the organization throughout its lifespan
(Singh and Dutta 2015). In addition to that, it would include the cost for delivery of services,
installations, training, operation maintenance, use of energy and environmental resources, the

4CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
health and safety of the people involved and the cost of labour. Following would be the utility
of Telelink in case of its Total Cost of Ownership:
Description Cost
Asset Purchasing (Remaining Value) 53,290 NZD
Asset Management (Initial Cost) 21,316 NZD per month
Training (Production Cost) 25.58 NZD per employee per month
Use of energy and environmental resources
(Production Cost)
3,730.30 NZD per month
Health and safety of the employees
(Maintenance Cost)
896.33 NZD per month
Operation maintenance (Operation Cost) 1,599.77 NZD per employee per year (avg.)
Cost of Labour (Downtime Cost) 1270.43 NZD per labour
Total cost of ownership = Initial Cost + Operation Cost + Maintenance Cost +
Downtime Cost + Production Cost – Remaining Value
= {21,316 + (1,599.77 * 200) + 896.33 + (25.58 * 100)
+ (1270.43 * 300) + 3,730.30 – 53,290} NZD = 676,293.63 NZD
Therefore, the Total Cost of Ownership in this particular case for the Telelink
organization is 676,293.63 NZD or approximately 676,293 NZD every month.
Relationship between TCO and ROI
Net profit / TCO = Return on Investment
= NZ$ (40, 90, 00,000 / 676,293)
= NZ$ 604.767
The net profit of the company has been collected as per the latest available and the
TCO as calculated above when divided gives the return on investment. The return on
investment (ROI) can be defined as the net gain of a company in terms of the investments
made.

5CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
Governance and organization
Since Telelink is an SME organization, there might be an idea that only large
organizations are susceptible to the implementation of the governance policies. However,
there should be a proper planning behind the implementation of the governance planning
(Chen et al. 2017). This is to ensure that the proper planning of the governance ensures that
there is a proper infiltration of the standardized planning and the execution of the business
operations and there is also generic standardized for the rules and regulations policy as
developed in the organizations. This is why Telelink has also made sure that the governance
policies in this organization has essential governance policies so that the current business
policies maintain the proper standardization of ethical and moral values and adds values to
the business outcomes as well.
This is why, the cloud service governance is to be implemented to the Telelink
organization for the cloud system implementation. This would help in the application of the
specific policies and the principles by which the cloud computing services is standardized to
be used (Syed et al. 2015). It would not just secure the applications and the data within the
organizations while providing the services to the customers but also would be helping the
organization with the handling of the secured applications and data while the services would
be located remotely. The utilization of SOA governance would be extremely helpful in this
regard and at the same time this would provide a great deal of the unique services to the
public cloud architecture.
Risk Management
The major risks that the telecommunication SMEs face every now and then is
followed by the framework for the developed business systems and also for the
implementation of the cloud services in Telelink has to include the challenges that need to
ensure how much of the risks can be mitigated and how much of them would probably create
challenging situations for the organization (Jain 2016). It is also required to analyse the
severity and the priority of the risks and the solutions to mitigate them according to these
ideals. There might be risks related to the creation of the flexible framework for the
management of control and definition of the compliance measurements. In addition, there are
several other managements of the handling of multiple systems that happens in the systems as
well (Ahmad et al. 2015). This includes the consolidation of the multiple data in the internal
systems, the third-party software and also the third-party content delivery people. The

6CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
management of the enormous data with cloud implementation is susceptible to the following
risks and their management would be required:
 Privacy of security of data
 Cyber attacks
 Quality of Services
 The performance and the bandwidth costs
 Incorporation of the Existing Infrastructure with the new system
 Identification and implementation of the governance and control for the cloud
systems
B. Evaluation and selection of the appropriate Cloud solution and deployment
model
Cloud solution selection procedure
There is a proper way by which the project should be selected and then it would be
declared for the proper implementation of the implementation of the cloud services. Telelink
would be following these for the proper implementation by selecting the right kind of cloud
services for the organization:
 Identifying the adjoining certifications and standardizations of the procedures
of the available cloud services.
 The technologies and the service roadmaps as provided by the cloud services.
 The business policies, the data security and the data governance procedures for
the cloud services (Kaur and Rani 2015)
 The partnerships and the service dependencies
 The Commercials, Contracts and the SLAs for the cloud services
 The performance and reliability of the services
 The Migration Support, the vendor locking and the exit planning for the cloud
services
 The business health and company profiles of other organization who have
been utilizing the cloud services before.
Short Overview of the selected Cloud Service provider
Based on the above-mentioned criteria for selecting a web service, the Amazon AWS
web services should be selected for the business operational processing. The Amazon AWS
happens to be a secured and safe cloud service platform that represents the proper operational

7CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
service for the handling of the organizational services (García-Galán et al. 2016). This would
be the inclusion of the computing power, the database storage system, the delivery of the
content and the functionality that would help the business in scaling and growing.
Comparison of Amazon AWS with other cloud providers
Amazon AWS Microsoft Azure Google Cloud
Overwhelming options in
cloud computing.
Management tools are less
efficient.
Fewer services and data
centres.
Enterprise friendly services Less enterprise friendly Less features than other two
Dominating the field over 12
years with market share of
62%.
Its market share is 20% and
operates in the market for 7
years.
The newest service
operating for 6 years and
market share worth 12%.
Table 1: Comparison Chart
(Sources: Created by the Author)
C. Critical Assumptions and Constraints
There would be several assumptions that would be required to fulfil the total
implementation for the Amazon AWS system (Osanaiye et al. 2017). This would be the
assumptions that is thought to be brought about in the organization with the implementation
of the Amazon AWS cloud services. Following are the assumptions that would be
implemented with this particular implementation plan:
 The cost effectiveness
 The economies of the scale
 The flexibility of the business and the business speed enhancement
 The security and compliance enhancement
 The disaster recovery and reliability
There would be several constraints of the Amazon AWS implementation as well since
there are several limits existing for the services provided by Amazon AWS (Rodrigues et al.
2016). This would also include the likes of the service limits that Amazon AWS no longer
takes into account as they are unchangeable. These are the limitations of the services in EC2,
the Security Limitations, the Fee for the Technical Support and the general issues related to
cloud computing.

8CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
D. Methods for the migration of the on-premise servers to Cloud
The following would be the methods that would be effective for the on-premise
migration for Telelink to the Amazon AWS cloud services in the easiest steps possible. These
would be described in the following steps as below:
 Planning and assessment of the entire structure divided into several phases,
including the financial assessment, the compliance and security assessment
and the functional and technical assessment (Rosário et al. 2018).
 The selection of the proper tools for the migration procedure with the
unmanaged cloud data migration tools, managed cloud data migration tools,
and the tools required for the optimization or replacing the physical uses of the
internet services.
 The assessment of the various options for the storage that are available for the
AWS cloud storage system. This would include cost, durability, response time,
availability, the storage size of the stored objects, the accessibility and cache-
ability of the information, the consistency and the SQL joints with the
updating of the frequency (Jamshidi et al. 2015).
 The hybrid migration strategy that would be applicable to the system.
 The applications that would be utilized for the options available for the
migration procedure.
E. Quantifying cost, investment and strategic opportunities
Cost: The cost for the implementation of the Amazon AWS services includes the
typic cost that would be about 1-3 USD equivalent per month if the services are available to
the people Free Tier Limits (Balalaie, Heydarnoori and Jamshidi 2016). The static website
hosting would include the cost of implementation of about 0.50 USD per month. According
to the storage pricing, the S3 standard storage would cost around $0.023 per GB for the first
50 TB / Month, $0.022 per GB for the next 450 TB / Month and $0.021 per GB for over 500
TB / Month (Jamshidi, Pahl and Mendonça 2017).
Investment: The total investment that Telelink should think about would be about
5,000 USD equivalent sum of money (Lynn 2019).
Strategic Opportunities: The strategic opportunities for the Amazon AWS
implementation is the end to end approach that the system provides the organization and the

9CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
security that is required to lower the costs for the implementation and the provision of the
services for the on-premise environment.
F. Validation of the business case
Return on Investment
The Return on Investment would be extremely helpful for the organization of Telelink
to implement in the organization by replacing the traditional systems.
RMO Cost/Benefit Analysis for impleneting Amazon AWS
Planning for implementation of implemeting Amazon AWS services 3960
Conduction of cleaning activity 6270
Total Cost for the project 10230
Year of Project
year 0 year1 year 2 year 3 year 4 year 5 TOTALS
Net economic benefit $0.00 $5,000.00 $2,000.00 $7,500.00 $7,500.00 $7,500.00
Discount Rate 8% 1 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Benefits $0.00 $4,629.63 $1,714.68 $5,953.74 $5,512.72 $5,104.37
NPV of all BENEFITS $0.00 $4,629.63 $6,344.31 $12,298.05 $17,810.77 $22,915.15 $63,997.91
One Time Costs $10,230.00
Recurring Costs $0.00 $400.00 $400.00 $400.00 $400.00 $400.00
Discount Rate 8% 1.0000 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Recurring Costs $0.00 $370.37 $342.94 $317.53 $294.01 $272.23
NPV Of All Costs $10,230.00 $10,600.37 $10,943.31 $11,260.84 $11,554.85 $11,827.08 $66,416.45
Overall NPV ($2,418.54)
Overall ROI = (Overall NPV / NPV Of All Costs -0.04
Break-Even Analysis
Yearly NPV Cash Flow $0.00 $4,259.26 $1,371.74 $5,636.21 $5,218.71 $4,832.14
Overall NPV Cash Flow $10,230.00 ($5,970.74) ($4,599.00) $1,037.21 $6,255.92 $11,088.06
Project break-even occurs between years 2 and 3
Use 1st year of positive cash flow to calculate break-even fraction 2.8160 years
Total Cost for the project
Table 1: CBA analysis for the implementation procedure
(Sources: Created by the Author)
Quality of Services
Increased quality of services can be ensured with the implementation of the cloud
services by Amazon AWS cloud implementation.
G. Reflection of the overall business case of the following options
i) Do nothing
If the current business service is still implemented and not replaced at all, at some
point of time it would be outdated by the ever-changing business environment and this would
affect the overall functioning of the organization (Naldi and Mastroeni 2016). The
organization may even go out of service.

10CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
ii) Migrate critical aspect of the business to cloud
The entire business should be migrated to the cloud because if they are not
implemented, there might be situations where not implementing the cloud infiltration would
be problematic when the information would increase in number more and more with time
(Machen et al. 2017).
iii) Considering the total migration procedure and comparison of the Telelink “As-Is”
Environment with proposed cloud storage environment
a. Technology Optimization
Scaling
I believe that the technology optimization is extremely required for the Telelink “As-
Is” Environment as it would help in reducing the problematic situations that Telelink was
facing or would have been faced with the infiltration of the changes in the business
environment (Uchibayashi et al. 2018). This would help the Telelink “As-Is” Environment to
scale the information system and help the information strategy as well.
Price
The price of the initial cost for the migration of Telelink “As-Is” Environment would
be a bit too much for the organization to handle but with increasing time they would
understand that without the proper implementation of these services would lead to more risk
and there would be no proper resources left to handle the data or the business process (Ansar
et al. 2018).
Service
The services would be much more enhanced by migrating the Telelink “As-Is”
Environment to the Amazon AWS cloud. These would help in much more scalable
information and would also help the organization to provide better
b. Transformation Impact
Government Policy
The government policies would be much more organized.
Application Optimization
The business procedures would be predominantly optimized.
Compliance
The compliances would be formulated properly.

11CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
Business Alignment
The business would be aligned properly and would be provided with better business
clarification and transparency.
Security
The business would be much more secured that it was before in case of the
information security structures.
On-demand and Operational Integration
Companies that implement demand or supply integration (DSI) can not only provide
promotions, supply chain and operations with business objectives.

12CLOUD STORAGE ADAPTATION - TELELINK “AS-IS” ENVIRONMENT
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