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Cloud Computing by James F. Ransome, John W. Rittinghouse

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285
Appendix B
Executive Scenario for
Cloud Migration
This narrative discussion will help you to understand the decisions that
must be made by members of a corporate executive team when considering
a move to cloud-based operations. In our scenario, consider a situation
which the Acme Widgets company has increased production from $12M in
revenue to $120M over the past five years. Facing a projected growth of
20% in sales ($144M in the next year), the company infrastructure has been
stretched to the limits of capacity and there are demands for more from
both internal users and from external clients and vendors.
Susan, the CEO, has been lauded for bringing the company phenome-
nal growth. Increasing a company’s revenue stream 10-fold over a five-year
period gets notice from a lot of people, especially shareholders. The board of
directors has been very generous, so keeping up the growth has made the
CEO feel like the proverbial duck swimming on a calm pond—no one sees
how fast the feet below the water line are moving to keep the duck afloat.
Susan knows from conversations with each of her team members that the
company is at a point where it cannot continue without making some
changes, and she has assembled the executive team to discuss how to pro-
ceed with a proposal made by Jim, the CIO, to reduce operational costs by
using cloud services.
Murray, the CFO, knows that administrative costs, labor, and accounts
payable and receivable are struggling to keep up, expenses are lopsided and
far too high on the sales side, and there is not enough staff to do the job
without having people stay until 9 or 10 p.m. every night. Trying to balance
profitability, cost of sales, and management of operational costs has become
Murray’s favorite daily exercise. Making a cut that may impact the flow of
revenue could cause a burp in the system that the company cannot afford, so
any changes are made only after lots of study and meetings, when a general
Appendix B.fm Page 285 Tuesday, May 26, 2009 2:09 PM

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