MENTION THE VARIOUS PHASES IN CC STRATEGY?

1. Define: Establishing a clear understanding of cloud computing concepts and terminology.

2. Assess: Analyzing the potential impact of cloud computing on the business, including strategic,
risk, and financial considerations.

3. Design: Developing a cloud solution that aligns with business requirements.

4. Select: Choosing suitable applications for cloud deployment, identifying appropriate cloud
services and providers, and defining user profiles.

5. Integrate: Assembling the chosen components into a cohesive end-to-end design, ensuring
connectivity, business continuity, and security.

6. Implement: Putting the cloud solution into action, including transition management, project
planning, team formation, infrastructure setup, and migration of applications and data.

7. Operate: Managing the ongoing operation of cloud services, including administration, service
management, monitoring, and support.

8. Control: Addressing governance, risk, and compliance issues related to cloud adoption.

9. Adapt: Systematically refining cloud services based on business changes, technology evolution,
and feedback.

10. Evolve: Keeping abreast of future trends in cloud computing and related technologies to ensure
ongoing relevance and competitiveness.

These phases provide a comprehensive framework for approaching cloud computing implementation,
ensuring that organizations consider all critical aspects from initial planning to continuous improvement
and adaptation.

EXPLAIN THE EXTERNAL ANALYSIS IN CO STRATEGY IN DETAIL?

External Analysis in Cloud Computing Strategy

The external analysis is a critical component of developing a cloud computing strategy, focusing on the
broader environment in which the organization operates. It involves assessing factors that can influence
the organization's decisions and opportunities related to cloud adoption. The analysis typically includes:

 Environmental Threat and Opportunity Profile: This involves identifying potential threats and
opportunities in the external environment that could affect the organization's cloud strategy.

 PEST Analysis:

o Political: Examines the political factors that can influence cloud computing, such as
regulations and compliance requirements related to data privacy and audits. The text
 emphasizes the increasing complexity of data ownership and control in the cloud, and
the potential for future legislative changes.

o Economic: Assesses the economic factors, such as the shift from fixed and capital IT
expenditures to variable and operational costs due to cloud computing. This shift can
impact cost curves, break-even points, price competition, and product/process
differentiation. It also considers how outsourcing IT infrastructure can free internal
resources to focus on core competencies.

o Socio-cultural: Analyzes the social and cultural impacts of cloud computing on

customers and employees. This includes the increasing integration of physical and
virtual worlds for customers, the implications of increased data analytics for privacy, and
the blending of human and system intelligence.

o Technological: Considers the technological factors, such as the direct impact of cloud
computing on IT services, software, and hardware. It also highlights how cloud
computing can drive increased agility, experimentation, and faster technology adoption.

LIST ANY FIVE RECOMMENDATIONS FOR CLOUD COMPUTING

1. Preparation is critical: Start planning for the cloud early, as many activities have extended
durations or are restricted to infrequent intervals.

2. Think beyond technology: Cloud computing is more than just a technology; it's a frame of mind
that maximizes agility and flexibility. Adopting this mindset early facilitates easier technology
implementation.

3. Assess applications diligently: Carefully assess any candidate application before planning its
transition to the cloud.

4. Consider pain points: When identifying candidate applications, consider systems that currently
represent pain points in financial, operational, or functional terms.

5. Gather comprehensive information: Enterprises should assemble as much information as

possible on the cloud provider to better assess risks and make informed decisions.

EXPLAIN RISK IMPACT IN CLOUD COMPUTING?

Risk Impact in Cloud Computing: A Detailed View

 When an organization adopts cloud computing, it's essential to consider the potential
consequences of things going wrong. This is what we mean by "risk impact." It's not just
a general idea; it involves looking at the specifics of what could happen and how bad it
could be. Here's a breakdown:

 Range of Consequences: The negative outcomes can vary widely. They might include:

o Financial Losses: This could be from service disruptions that stop business activities or
from unexpected costs.

o Reputational Damage: If there are data breaches or service outages, it can harm the
trust customers have in the organization.

o Legal Liabilities: There are increasing regulations around data, and if cloud use doesn't
comply, it can lead to legal problems and fines.

o Operational Disruptions: Cloud services are critical for many functions, so if they fail, it
can disrupt how the organization operates.

 New Risks Introduced: Cloud computing isn't just a different way of doing the same thing. It
changes how IT is handled, and this creates new risks that weren't there before. Organizations
must identify and understand these.

 Balancing Benefits and Risks: It’s not enough to just see the upside of cloud computing.
Organizations need to carefully weigh the good (benefits) against the bad (risks) to make smart
decisions.

In essence, risk impact in cloud computing is a comprehensive evaluation of all the

potential downsides, helping organizations make informed choices and prepare for any
problems that may arise.

LIST THE BENEFITS AND CHALLENGES OF CLOUD COMPUTING?

BENEFITS

 Cost: Cloud computing can help enterprises reduce and simplify their cost structure.
  Agility: Cloud computing offers elasticity, enabling businesses to become more agile.

 Focus: By outsourcing IT functions, companies can free up resources to concentrate on their

core business activities.

 Security: Cloud providers usually have robust security measures, possibly exceeding those of
individual enterprises, including strict audits, advanced security solutions, and specialized staff.
Cloud computing also facilitates security functions like disaster recovery, monitoring, and data
segregation.

 Flexibility: Cloud infrastructure enhances enterprise architecture flexibility and agility, making it
easier to deploy new services and retire old ones, and to scale services according to demand.

 Quality: Cloud service providers ensure high service quality through economies of scale,
specialization, rigorous processes, and skilled personnel.

CHALLENGES

Financial Structure:

 The absence of capital investment and reduced fixed costs may seem very attractive, but it is
important to realize that there will probably also be significant implementation and migration
costs associated with the move to a cloud platform.

 Sunk costs in existing infrastructure may also act as a deterrent toward migration.

Security and Risk:

 The security and risk concerns are probably the best known and most challenging to address.

 A common obstacle to the adoption of cloud computing is the fact that the service provider
hosts sensitive data – potentially in a multi-tenant environment. The customer must consider
the host to be trustworthy enough not to intentionally, or inadvertently, compromise the
information.

EXPLAIN FINANCIAL IMPACT OF CC IN DETAIL?

The financial impact of cloud computing is multifaceted, influencing various financial

indicators.
 Return on Investment (ROI): This is a primary consideration, measured through metrics like Net
Present Value (NPV) or Internal Rate of Return (IRR). Cloud adoption involves an initial
investment that temporarily raises costs, but the expectation is that ongoing costs will decrease.

 Relevant Costs: Several cost categories are affected by cloud computing:

o Capital costs are expected to decrease in the long run, especially concerning data center
property, equipment, and IT infrastructure.

o Operational costs, including IT operations, support, and management, are also subject
to change.

o Implementation and migration costs are significant and should be factored into financial
planning.

o "Soft costs," such as those related to employee productivity and satisfaction, while hard
to quantify, are also relevant.

 Revenue Benefits: Cloud computing can enhance revenue, particularly for online services, due
to the elasticity of resources that allows for quick responses to increased demand.

 Capital Budgeting: Evaluating the financial viability of cloud adoption requires more than just
projecting higher revenue and lower costs; it involves considering the inherent risks of new
technologies and ensuring that investments meet or exceed expected returns.

 Cash Flow: Cloud computing affects cash flow, with potential improvements from reduced
capital expenditures but also challenges from initial implementation costs.

 Financial Visibility: Cloud computing can enhance financial visibility by providing a clearer view
of IT costs and their relation to business value.

A LIST THE VARIOUS BENEFITS OF CC?

 Cost: Cloud computing can help enterprises reduce and simplify their cost structure.

 Agility: Cloud computing offers elasticity, enabling businesses to become more agile.
  Focus: By outsourcing IT functions, companies can free up resources to concentrate on their
core business activities.

 Security:

o Cloud providers usually have robust security measures, possibly exceeding those of
individual enterprises, including strict audits, advanced security solutions, and
specialized staff.

o Cloud computing also facilitates security functions like disaster recovery, monitoring,
and data segregation.

 Flexibility: Cloud infrastructure enhances enterprise architecture flexibility and agility, making it
easier to deploy new services and retire old ones, and to scale services according to demand.

 Quality: Cloud service providers ensure high service quality through economies of scale,
specialization, rigorous processes, and skilled personnel.

EXPLAIN ENTERPRISE WIDE RISK MANAGEMENT IN DETAIL?

Enterprise-wide risk management is a structured approach to identifying, assessing, and

mitigating risks across an entire organization.

 It involves aligning risk management with the organization's strategic objectives to ensure that
potential risks are considered in decision-making processes.

 This approach enables organizations to evaluate the cumulative impact of risks across different
departments and functions, rather than managing risks in isolation.

 It also helps in prioritizing risks based on their potential to affect the organization's objectives
and in developing coordinated strategies to manage them effectively.

LIST THE CHALLENGES IN THE CLOUD COMPUTING?

 Financial Structure:
 The absence of capital investment and reduced fixed costs may seem very attractive, but it is
important to realize that there will probably also be significant implementation and migration
costs associated with the move to a cloud platform.

 Sunk costs in existing infrastructure may also act as a deterrent toward migration.

 Another challenge can be the existence of current contracts with service providers. These may
preclude (or heavily penalize) early exits.

 Security and Risk:

 The security and risk concerns are probably the best known and most challenging to address.

 A common obstacle to the adoption of cloud computing is the fact that the service provider
hosts sensitive data – potentially in a multi-tenant environment. The customer must consider
the host to be trustworthy enough not to intentionally, or inadvertently, compromise the
information.

LIST THE STEPS INVOLVED IN RISK MANAGEMENT?

The steps involved in risk management, according to the provided text, are as follows:

1. Identify: This involves recognizing potential risks through methods like brainstorming and
analyzing assets to determine possible threats.

2. Assess: This step includes evaluating the identified risks to understand their potential impact
and likelihood.

3. Prioritize: Risks are ranked based on their severity and the probability of occurrence, helping to
focus on the most critical ones.

4. Treat: This involves developing strategies to manage risks, such as reduction, transfer,
avoidance, or acceptance.

5. Monitor and Control: This is an ongoing process of tracking risks, evaluating the effectiveness of
treatment strategies, and making adjustments as necessary.