nonprofit, or government) have finite budgets. Management must allocate these financial assets

Analyze Economic Implications

Now that you have weighed the benefits and drawbacks of cloud computing, it’s time to take a

close look at the economic implications of a move to the cloud. All organizations (for-profit,

nonprofit, or government) have finite budgets. Management must allocate these financial assets

appropriately so that the leaders can make sound business decisions and meet the objectives of

the organization.

Information technology (IT) is a key strategic function to help support the objectives of an

organization. es first used information systems to replace paper-based methods of

helping management perform these functions, and that use continues today. Managers must be

able to understand different IT models to make the best financial investment decisions for the

organization.

The financial requirements for the cloud computing model are different than the financial

requirements for an on-premise model. Cloud computing shifts budgets to a pure operating

expense model, whereas the traditional on-premise computing model requires both capital and

operating expense allocations.

Several free calculators to help estimate the cost of cloud services exist on the web, including the

AWS Total Cost of Ownership (TCO) Calculator and Azure TCO Calculator. Alternatively, you

may find other calculators to estimate your cloud cost. Most cloud providers have their own

cloud cost estimator tools. If the calculator that you selected does not show on-premise data, then

you can recalculate using one of the other calculators that do provide this data.

For your economic analysis, enter the information from BallotOnline’s IT Budget and

Infrastructure Summary into your chosen calculator to estimate TCO for the current physical IT

infrastructure configuration. Then estimate TCO for a comparable configuration in the cloud to

estimate the potential cost savings.

Write the summary of the economic implications, showing the savings and how you arrived at

them.

Length: 6 pages, not including cover and references pages.

References: 7 references

https://calculator.aws/#/

https://azure.microsoft.com/en-us/pricing/tco/calculator/