Purchasing Hardware vs. Cloud Services
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Questions and Answers

What is a primary advantage of purchasing computer hardware compared to using cloud services?

  • Lower initial cost
  • No risk of obsolescence
  • Easier maintenance
  • Full control over hardware and software (correct)
  • When evaluating whether to purchase hardware or use cloud services, which factor is considered a disadvantage of buying hardware?

  • Full responsibility for operation and maintenance (correct)
  • Lower reliability risks
  • Scalability
  • Ability to change software rapidly
  • Which of the following is a benefit of using cloud services over owning hardware?

  • Full control over your own data
  • Scalable growth capacity (correct)
  • Tax advantages through depreciation
  • Lower long-term costs
  • What is a common risk associated with using cloud services?

    <p>Data security concerns</p> Signup and view all the answers

    During a hardware needs assessment, what is an essential criterion to evaluate before making a purchasing decision?

    <p>Technical support for installation and maintenance</p> Signup and view all the answers

    What is the primary consideration when evaluating hardware for purchase?

    <p>Time required for average transactions</p> Signup and view all the answers

    Which of the following is NOT a step in determining hardware and software needs?

    <p>Analyze software vendor popularity</p> Signup and view all the answers

    When evaluating hardware for purchase, who is included in the evaluation process?

    <p>Management, users, and systems analysts</p> Signup and view all the answers

    What is a common disadvantage of purchasing hardware?

    <p>Initial cost is often very high</p> Signup and view all the answers

    Which of the following is a service typically offered by cloud services?

    <p>Email hosting</p> Signup and view all the answers

    What is a key advantage of creating custom software?

    <p>Specific response to specialized business needs</p> Signup and view all the answers

    What aspect is evaluated to determine the efficiency of a system's performance?

    <p>Total volume capacity of the system</p> Signup and view all the answers

    Which of the following is a disadvantage of purchasing COTS packages?

    <p>Limited customization options</p> Signup and view all the answers

    Which factor should be assessed during inventorying computer hardware?

    <p>Financial arrangement for equipment</p> Signup and view all the answers

    Why might an organization choose SaaS over traditional software solutions?

    <p>Reduced need to hire and maintain a large IT staff</p> Signup and view all the answers

    What is a potential benefit of renting cloud services instead of purchasing hardware?

    <p>Elimination of upfront costs</p> Signup and view all the answers

    What performance criterion focuses on the satisfaction of users while carrying out tasks?

    <p>Ease of use</p> Signup and view all the answers

    One of the disadvantages of using SaaS is typically:

    <p>Loss of control over data and privacy</p> Signup and view all the answers

    What factor can significantly influence the decision to create custom software?

    <p>Need for tailored solutions and innovation</p> Signup and view all the answers

    When evaluating hardware purchasing options, which of the following is NOT a typical performance criterion?

    <p>Initial software development costs</p> Signup and view all the answers

    What is one primary concern for organizations when adopting SaaS solutions?

    <p>Loss of potential strategic corporate advantage</p> Signup and view all the answers

    Study Notes

    Purchasing Hardware vs. Cloud Services

    • Buying Computer Hardware: Provides full control over hardware and software; potentially cheaper in the long run with tax advantages; but requires upfront cost, carries obsolescence risk, and places full responsibility for operation and maintenance on the company.
    • Using Cloud Services: Offers maintenance and upgrades handled by the provider, allows rapid software and hardware changes, and is scalable; however, data security and reliability depend on the internet platform, and proprietary APIs may make switching providers difficult.

    Evaluating Vendor Support

    • Hardware support
    • Software support
    • Installation and training support
    • Maintenance support

    Ascertaining Hardware and Software Needs

    • Steps to determine hardware and software needs:
      • Inventory existing hardware
      • Estimate current and future workloads
      • Evaluate available hardware and software
      • Choose a vendor
      • Acquire the computer equipment

    Inventorying Computer Hardware

    • Factors to consider when inventorying computer hardware:
      • Type of equipment
      • Operation status
      • Estimated age
      • Projected life
      • Physical location
      • Responsible department or person
      • Financial arrangement

    Acquisition of Computer Equipment

    • Two methods of acquisition:
      • Purchasing
      • Using cloud services

    Evaluating Hardware for Purchase

    • Parties involved:
      • Management
      • Users
      • Systems analysts
    • Information Review: Vendor information should be reviewed with management and users.
    • Workloads: Simulated workloads can be run on different systems for benchmarking.

    Evaluating Hardware for Purchase

    • Performance metrics to consider:
      • Time for average transactions
      • Total volume capacity
      • CPU and network idle time
      • Memory size

    Advantages of Purchasing Hardware

    • Control: Full control over type of hardware and software.
    • Flexibility: Company decides when to purchase and replace equipment.
    • Cost-Effectiveness: Often cheaper in the long run.
    • Tax Advantages: Some countries offer tax benefits.

    Disadvantages of Purchasing Hardware

    • High Initial Cost: Requires a large upfront investment.
    • Obsolescence Risk: Risk of equipment becoming outdated.
    • Responsibility: Full responsibility for operation and maintenance.

    Renting Time and Space in the Cloud

    • Available cloud services:
      • Web hosting
      • Email hosting
      • Application hosting
      • Backup
      • Data storage and processing
      • Archiving
      • Ecommerce

    Creating Custom Software

    • Advantages:
      • Tailored to specific business needs.
      • Innovation can provide competitive edge.
      • In-house staff can maintain software.
      • Pride of ownership.
    • Disadvantages:
      • Higher initial cost compared to COTS or ASP.
      • Requires development team.
      • Ongoing maintenance required.

    Purchasing COTS Packages

    • Advantages:
      • Refined for commercial use.
      • Increased reliability and functionality.
      • Often lower initial cost.
      • Already used by other firms.
      • Help and training included.
    • Disadvantages:
      • Programming-focused, not business-focused.
      • Limited customization.
      • Financial future of vendor may be uncertain.
      • Less ownership and commitment.

    Using SaaS (Software as a Service)

    • Advantages:
      • Organizations can focus on their core mission.
      • No need for large IT staff.
      • Eliminates non-essential IT tasks.
    • Disadvantages:
      • Loss of control over data, systems, and IT staff.
      • Concerns about SaaS provider's financial viability and security.
      • Potential loss of innovative advantage.

    Software Evaluation

    • Evaluation criteria:
      • Performance effectiveness
      • Performance efficiency
      • Ease of use
      • Flexibility
      • Documentation quality
      • Manufacturer support

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    Description

    This quiz explores the key differences between purchasing computer hardware and utilizing cloud services. It covers various aspects such as cost, maintenance, vendor support, and evaluating specific hardware and software needs for companies. Test your understanding of these important considerations in the IT landscape.

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