Sourcing Strategies





Sourcing Strategies


In public cloud, an organization shares its host or infrastructure with other companies and the public whereas in private cloud computing, the company owns their hardware, which is only used by the organization. Organizations are better served by private cloud computing than public cloud due to security concerns. Moreover, lack of maturity in the public cloud technology leads to organizations decision of opting for private cloud computing.


a. Amazon Web Services (AWS) and Elastic Compute Cloud (EC2). The Amazon Elastic Compute cloud service offers a sizable computing capacity in the cloud through its web scale. It is at the infrastructural level of the cloud-computing stack. The Amazon ECT is beneficial to its users since it reduces the time needed for one to boot from the service in order for another individual to use the service.

b.’s 1 Sales Cloud. It is classified by the platform as a service level clouding technology. Developers in this type of computing are allowed to create applications without placing focus on the computer processes that are involved. The service adds value to the organization because it creates an opportunity for new developments through new applications that benefit the company.

c. Boomi’s AtomSphere. Boomi offers integration and consultation services. Therefore, it is referred to as a service level type of cloud computing. The organization is able to find both short and long-term solutions since it creates a proliferation of information, which is part of the SaaS application.

d. HP’s ConvergedCloud. Hp Converged Cloud computing provides a simple integrated design that works across hybrid, private and public cloud environments by enabling service providers and enterprises to manage their services. According to the cloud-computing stack, it is identified by the collaboration level. Service providers benefit from it through the improved speed and agility, which facilitates the drive to attain a top-line expansion.  


                EPIC’s Total Cost of Ownership Framework

Start up costs End-user hardware purchase costs These includes purchasing desktops, CPU systems and keyboards
Operations infrastructure These are the working areas for the framework.
Technology training of IT personnel and users costs Involves purchasing of materials such as wall papers and projectors
One time costs Replacement costs It involves costs incurred when replacing broken down equipments.
Migration costs Costs needed when the company shifts its location.
Ancillary costs Security breaches costs Includes recovery and loss of reputation costs
Diminished performance costs These are compensation costs to end-users.
IT personnel costs This includes payments to the workers in the organization.


In-house developed software strategy has both strengths and weaknesses. It facilitates a level of customization by meeting the specifications that have been put in place. It also provides access to knowledge support. The weaknesses of this type of sourcing are that it lacks scalability therefore it makes it hard for one to upgrade it and the in-house team may lack the expertise and knowledge necessary for creation of software. This was a strategy adopted by CMC. It was profitable for the project because it was able to meet al its expectations.

             Commercial software strategy is beneficial since it facilitates a smoother and quicker integration with a faster deployment. However, the maintenance costs for this strategy is relatively high. Purchasing software through off shelf buying benefits the organization because the software is tested and are of standard quality. Nonetheless, the software might not meet the institution’s requirements and it might corrupt files in the organization’s system.

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