This report analyzes the strategic information system of Hewlett-Packard, focusing on the implementation of cloud computing to address challenges like inflexible vendor contracts and rising IT infrastructure costs. It examines the business requirements, system requirements, and the proposed solution, including software and vendor selection. The report evaluates the level of efficiency gained through cloud model utilization, outlining three specific ways to enhance efficiency. It also addresses security risks and provides relevant guidelines for implementation. The analysis includes the Commonwealth Bank of Australia as a case study, highlighting the benefits of cloud-based IT operating models for efficiency gains, cost savings, and vendor leverage. The report further discusses the concept of IT-as-a-Service (ITaaS) and its phased implementation, emphasizing the importance of automation, standardization, and workload portability. The study concludes by outlining the benefits, including cost reduction, and security considerations associated with the transition to a cloud-based architecture.