Question

ABC Inc. is a mid-sized company that provides web content management products and services. The company has been under tremendous pressure to cut down its cost. A senior member of the executive team suggested that in order to cut its cost, (1) the business should move to the cloud; and (2) the company should use open source enterprise software since it is absolutely free.

It is now your job to argue for or against this proposal. Provide ample justification and use examples where required to strengthen your arguments.

Answer 1

Solution :  I completely agree with the suggestion of the senior member. Now, I am going to list a few points in arguing for the senior member suggestion.

Let's see the benefits of using the cloud in the business :

(A)  Instead of using own data center, the business should use cloud-based services because using cloud-based services can reduce the data and resource storage cost of the business. Simply, we can store the whole business data / information on the cloud which could increase the productivity of the business with lower costs and higher profits.

(B)  The more benefit of using cloud-based services is that we can easily access our data, programs or anything stored in the cloud anytime and from anywhere with the help of any web-enabled system or device. This could also reduce the accessing time, efforts and extra costs of accessibility and availability in the business.

(C)  Using cloud computing technology in business can result in more economic growth and more benefits. Apart from this, Rise of Cloud computing is also improving computing performance, scalability, flexibility, portability under both time and budget constraint.

Now, Let's see the benefits of using open source enterprise software in the business :

(A)  Under the time and budget constraint, Open Source Enterprise Software helps in consulting, training and supporting business functionalities effectively because there is no exclusive access to the technology.

(B)  There is no need to pay any service fees, or cost to software vendors if we use Open Source Enterprise Software. Open Source Enterprise Softwares are free from License, Maintenance, Installation and Configuration Costs. Apart from this, It is free from yearly or monthly subscription fees.

Conclusion : These both ( Cloud-based services and Open Source Enterprise Software ) help business and global marketplace by increasing price transparency and market efficiency so that the business could have more profits and more market capitalization value.