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 (B)</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 (D)</p> Signup and view all the answers

What is the primary consideration when evaluating hardware for purchase?

<p>Time required for average transactions (B)</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 (B)</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 (C)</p> Signup and view all the answers

What is a common disadvantage of purchasing hardware?

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

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

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

What is a key advantage of creating custom software?

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

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

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

Which factor should be assessed during inventorying computer hardware?

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

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

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

One of the disadvantages of using SaaS is typically:

<p>Loss of control over data and privacy (B)</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 (C)</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 (A)</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 (B)</p> Signup and view all the answers

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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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