SEHH2312 Introduction to Cloud Computing

Assignment 2 (20%)

Requirement
You are the IT manager of an online dating company which to provide online dating platform

and application. Your company already setup on-premises IT infrastructure to for the online

dating platform 3 years ago. You would like to migrate to cloud computing to reduce the high

business cost of the existing on-premises solution. Using the information provided in the

background section, complete the cost analysis, and investigate the total cost of ownership

(TCO). Write a proposal within 500 - 800 words to convince the management to migrate to

cloud computing solution for the coming 3 years.

You need to include the followings in your proposal:

ü Completed tables of the costing for on-premise and cloud environment

ü Analysis on the business cost of on-premise and cloud-based method including:

n Up-front costs

n On-going costs

n Additional costs

ü Discuss the business cost metrics and other advantages from cloud computing

ü Any assumptions, if applicable

The marking proportion will be specified in rubrics.

Background
Current platform (on-Premise)

The company brought 8 on-premises servers to maintain its services.

Up-Front Costs On-Premise Environment

Hardware The purchase price for each high performance physical server
hosting the application is $45,000
$45,000 x 8 = $360,000

Licensing The software license required to run all servers

$3,000 x 8 = $24,000

Labor Installation service from Vendor

$35,000

Total $419,000

Running and maintenance costs of current platform

Monthly On-Premise Environment
On-Going Costs

Environment $2,500 / month

Software Licensing $700 / month

Hardware Maintenance $1,200 / month

Administration Two full-time technical staffs to manage the on-site servers

$16,000 x 2 = $32,000 / month

Total $36,400 / month

Estimated Costing (Cloud-based)

If the platform is being moved to cloud environment, the business cost can be estimate and
calculated as follow:
Up-Front Costs Cloud Environment

Hardware $0

Licensing $0

Labor $5,000

Total $5,000

Using the information below to complete the estimated costing:

On-Going Costs Cloud Environment

Application Servers Server Instance:

Usage fee is calculated per virtual server at a rate of
$1.25/hour per virtual server

Only 5 servers are required for most of the time throughout

the year, except the peak seasons of Xmas, New Year and
Valentine Day (from December to February), additional 3
servers are required during peak seasons.

After server instance scaling is factored in:

9 of the months charged for 5 server instance
3 of the months charged for 8 server instance

Database Servers Database Server and Storage:

Usage fees are calculated per database size, at a rate of
$1.09/GB per month

The application has its own 10 TB database that resides in a

separate HA cluster

WAN Network Network:

Usage fees are calculated per outbound WAN traffic at the
rate of $0.10/GB and a monthly volume of 800 GB
 Environment $0

Software Licensing $0

Hardware Maintenance $0

Administration Cloud resource administration service from Vendor

$800 / per month
(after firing the Two full-time technical staffs)

Costing Comparison for on-premise and cloud environment

Complete the following table and put that in your answer. Use these figures to justify your
proposal and convince the management.
Annual On-Going Costs Cloud Environment On-Premise Environment
(per year) (per year)

Application Servers HK$ HK$0

Database Servers HK$ HK$0

WAN Network HK$ HK$0

Environment HK$ HK$

Software Licensing HK$ HK$

Hardware Maintenance HK$ HK$

Administration HK$ HK$

Yearly Total HK$ HK$

Cost Analysis

Overall Costing (for coming 3-year time)

Cloud-Based Environment HK$

On-Premise Environment HK$

Company Saving HK$

Note
ü It will not be easy to score full marks for questions in this course. You need to give very

detailed and accurate answers to score full marks

ü Especially for this assignment, since these questions are worth a lot of marks, you will

be expected to give answers with in-depth analysis

ü If you have any references, please use APA 7th edition for citation

ü DO NOT repeat or reword the question when giving your answer.

ü DO NOT directly apply answers from GPT or other AI-generated tools,

NO marks will be given to AI-generated answers.

Deadline
The deadline of this assignment is 2/4 18:00 (UTC +8)

Submission Guideline
ü The acceptable file formats are docx only

ü Write down your student’s name and student No at the top of your submission file

ü Submit your assignment to Blackboard

ü The attached file name of assignment is asgn2.docx

ü For students who doesn’t follow the file name format, marks will be deducted

ü All late submission will receive 0 MARKS

Remarks
ü This assignment worth 20% of the total course mark

ü This is an individual assignment, NO collaboration work is allowed

ü Plagiarism will be SERIOUSLY PUNISHED. All the plagiarism assignment will

receive 0 marks

ü Enjoy your work

Rubrics
Assessment Criteria Outstanding to Good to Very Good Satisfactory to Wholly Barely Adequate to Barely Inadequate
Exceptionally Outstanding (Marks: 60 - 79) Satisfactory (Marks: 40 - Satisfactory (Marks: 20 - (Marks: 0 - 19)
(Marks: 80 - 100) 59) 49)
Tables of the costing for The student’s work is The student’s work is good The student’s work is The student’s work is barely No submission
on-premise and cloud outstanding. It was above and overall. The student's work is adequate. The student's work adequate. The student's work OR
environment (20%) beyond what was asked for. good in most parts with some is of moderate quality in is below average quality in The student’s work is
Demonstrate an industrial occasional weaknesses. most parts with some most parts with some major inadequate. The student's
level of knowledge. occasional weaknesses. weaknesses and work failed to meet
misconception. expectations, with some
major requirements missing
or not met. Exhibit a serious
misconception.
Analysis on the business The student's work is The student's work is good The student's work is The student's work is barely No submission
cost of on-premise and outstanding. It was above and overall. The student's work is adequate. The student's work adequate. The student's work OR
cloud-based method (30%) beyond what was asked for. good in most parts with some is of moderate quality in is below average quality in The student's work is
Demonstrate an industrial occasional weaknesses. most parts with some most parts with some major inadequate. The student's
level of knowledge. occasional weaknesses. weaknesses and work failed to meet
misconception. expectations, with some
major requirements missing
or not met. Exhibit a serious
misconception.
Discuss the business cost The student's work is The student's work is good The student's work is The student's work is barely No submission
metrics and other outstanding. It was above and overall. The student's work is adequate. The student's work adequate. The student's work OR
advantages from cloud beyond what was asked for. good in most parts with some is of moderate quality in is below average quality in The student's work is
computing (50%) Demonstrate an industrial occasional weaknesses. most parts with some most parts with some major inadequate. The student's
level of knowledge. occasional weaknesses. weaknesses and work failed to meet
misconception. expectations, with some
major requirements missing
or not met. Exhibit a serious
misconception.