Business Case for upgrading ICT Data Security System of KD Insurance PLC to Accommodate Cloud Computing By Keerthi Delwatta: Chief Information Officer. 1 06/07/2022
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Business case for upgrading ict data security system by keerthi delwatta u1054630
CIS:8000 Assignment 2 of USQ Australia Keerthi Delwatta U1054630
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1. Business Case for upgrading ICT Data Security System of KD
Insurance PLC to Accommodate Cloud Computing By Keerthi Delwatta:
Chief Information Officer. 9/17/2014 1
2. Agenda What is Cloud Computing Advantages and Disadvantages
Business Proposal Financial Analysis Conclusion List of References
9/17/2014 2
3. Purpose of Presentation To enlighten CEO, Board and
Executives on Cloud Computing to upgrade the ICT Data Security
System of the company to protect clients and firms data. 9/17/2014
3
4. Cloud Computing in Insurance Industry How the Cloud is
utilized : Data is stored in the off site virtual server owned by a
service provider on the basis of actual usage. Associated Risk:
Loss of control over software application. Over Dependence on
service provider for Maintenance, Upgrading and Management.
Experiences of other Companies: Very positive and Encouraging.
9/17/2014 4
5. Cloud Computing in Insurance Industry Advantages : Economies
of scale Scalable Processing & Application Minimum Capital
Investment Speedy Implementation Higher Productivity Disadvantages:
Extreme Dependence on the Service Provider Loss of control over
software application Compromise confidentiality & Privacy
9/17/2014 5
6. Cloud Computing in Insurance Industry Scope of
Recommendation: Upgrading ICT Data security system to protect
Clients and Firms own data. To synchronize and ensure integrity of
data on servers and end user devices. Infrastructure Requirements:
Cloud specific software applications Improved Communication Network
Facilities 9/17/2014 6
7. Financial Feasibility Base Case Analysis: 7 Base case
analysis of cloud computing to accommodate ICT Data security system
of K D Insurance Plc. year 0 1 2 3 4 5 6 Relevant benefits
(millions) Reduced costs of capital $0 $25 $30 $30 $35 $40 $45
Improved productivity $0 $25 $30 $40 $60 $75 $80 Reduced insurance
$0 $20 $20 $30 $40 $50 $60 Total improvements (A) $0 $70 $80 $100
$135 $165 $185 Relevant costs policy development and maintenance $0
$40 $45 $55 $55 $60 $70 software acquisition $40 $10 $10 $10 $10
$10 $10 support team $25 $10 $10 $10 $10 $10 $10 incremental
maintenance $0 $0 $10 $10 $10 $10 $10 training $10 $5 $0 $0 $0 $0
$0 Total costs (B) $75 $65 $75 $85 $85 $90 $100 Net cash flow -$75
$5 $5 $15 $50 $75 $85 9/17/2014
8. Financial Feasibility 8 Pay back Period 04 Years $ 73million
28.4 %d NPV @ 10% IRR Profitability Index 1.98d 9/17/2014
9. Sensitivity Analysis Criteria: Policy Development &
Maintenance Cost: Recommendation: Policy Development &
Maintenance Cost is highly sensitive to Net Present value and hence
should be properly controlled. 9 100% Policy Development &
Maintenance Cost 314% Net Present Value 9/17/2014
10. Sensitivity Analysis Criteria: Incremental maintenance cost
Recommendation: Maintenance cost is relatively sensitive to Net
Present value and hence should be controlled. 10 100% Maintenance
cost 47% Net Present Value 9/17/2014
11. Sensitivity Analysis Criteria: Productivity Recommendation:
Productivity is highly sensitive to Net Present value and hence
should be properly monitored to ensure desired results. 11 100%
Productivity 288% Net Present Value 9/17/2014
12. Conclusion Cloud Computing is highly advantageous to the
company as it enhance the productivity , increase efficiency of the
ICT Data Security system while minimizing the cost and hence I seek
your authorization and financial support for immediate
implementation of the project. 9/17/2014 12
13. Lessons learnt from Conducting the Research The risk
mitigation strategy of adopting a Private Virtual
Infrastructure(PVI) Model to share responsibility for Security of
Cloud Computing between information owner and service provider has
been evolved which is encouraging. 9/17/2014 13
14. Lessons learnt from Conducting the Research Trusted Virtual
Machines Identification Technique has been evolved to ensure proper
management of virtual machines in the data center that encourage
cloud computing. 9/17/2014 14
15. List of References 1. Kenneth, C, Loudon, Jane P. Loudon
2014,Management Information systems, Thirteenth Edition, Pearson,
England. 2. Das, T K ., and Teng, B.S. (1999), Managing risks in
strategic Alliance, Academy of Management Executives, Vol. 13 No.
4, pp. 50 -62 3. J.Heiser and M. Nicolett, Accessing the Security
Risk s of Cloud Computing, Gartner, inc., Stemford, Ct, 2008. 4. M.
Armbrust, A. Fox, R. Griffith et all., Above the Cloud: A Berkeley
View of Cloud Commutating, University of California , Berkerley,
Berkerly, CA, 2009, 5. Greenberg, A., Hamilton, J., Maltz, D.A.,
Patel, P. (2009). The Cost of a Cloud: Research Problems in Data
Center Networks, ACM SIGCOMM Computer Communications Review. 6.
Undheim, A., Chilwan, A., Heegaard, P. (2011). Differentiated
Availability in Cloud Computing SLAs, Proc. GRID conference, pp.
129136. 7. Menasc, D. A, Ngo, P. (2009). Understanding Cloud
Computing: Experimentation and Capacity Planning, Proc. Computer
Measurement Group conference 8.
http://www.ibm.com/developerworks/cloud/about.html 9/17/2014
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