Governance Framework for Cloud Computing

Abstract

In the current era of competitive business world
and stringent market share and revenue sustenance challenges,
organizations tend to focus more on their core competencies rather
than the functional areas that support the business. However,
traditionally this has not been possible in the IT management area
because the technologies and their underlying infrastructures are
significantly complex thus requiring dedicated and sustained in
house efforts to maintain IT systems that enable core business
activities. Senior executives of organisations are forced in many
cases to conclude that it is too cumbersome, expensive and time
consuming for them to manage internal IT infrastructures. This
takes the focus away from their core revenue making activities.
This scenario facilitates the need for external infrastructure
hosting, external service provision and outsourcing capability.
This trend resulted in evolution of IT outsourcing models. The
authors attempted to analyse the option of leveraging the cloud
computing model to facilitate this common scenario. This paper
initially discusses the characteristics of cloud computing focusing
on scalability and delivery as a service. The model is evaluated
using two case scenarios, one is an enterprise client with
30,000 worldwide customers followed by a small scale subject
matter expertise through small to medium enterprise (SME)
organisations. The paper evaluates the findings and develops
a governance framework to articulate the value proposition
of cloud computing.. The model takes into consideration the
financial aspects, and the behaviors and IT control structures of
an IT organisation.