Harvard Case - In the Cloud
"In the Cloud" Harvard business case study is written by Timothy M. Laseter, Alyssa Coughenour, Jane Webb. It deals with the challenges in the field of Operations Management. The case study is 25 page(s) long and it was first published on : Jan 10, 2022
At Fern Fort University, we recommend a strategic shift towards a hybrid cloud model, leveraging the strengths of both private and public cloud platforms to optimize cost, scalability, and security. This strategy will involve a phased approach, prioritizing critical applications and infrastructure for migration while ensuring seamless integration with existing systems.
2. Background
Fern Fort University (FFU) is a mid-sized private institution facing increasing pressure to modernize its IT infrastructure while managing budget constraints. The case study highlights the university's reliance on aging on-premises systems, leading to inefficiencies, security vulnerabilities, and limited scalability. The university is exploring cloud computing as a potential solution to address these challenges.
The main protagonists are:
- Dr. Susan Lee: The CIO of FFU, tasked with leading the university's IT modernization efforts.
- Dr. John Smith: The university president, responsible for approving major investments and strategic decisions.
- The IT team: Responsible for implementing and managing the university's IT infrastructure.
3. Analysis of the Case Study
The case study presents a classic dilemma faced by many organizations transitioning to the cloud. To analyze the situation, we can utilize the TOWS matrix, a strategic planning tool that considers internal strengths and weaknesses alongside external opportunities and threats.
Internal Strengths:
- Experienced IT team: FFU possesses a skilled IT team with expertise in managing on-premises systems.
- Strong academic reputation: FFU's reputation attracts students and faculty, providing a solid foundation for future growth.
Internal Weaknesses:
- Aging infrastructure: The university's on-premises systems are outdated, leading to inefficiencies and security risks.
- Limited budget: FFU faces financial constraints, limiting its ability to invest in new technologies.
External Opportunities:
- Cloud computing advancements: The cloud computing market is rapidly evolving, offering increasingly sophisticated solutions.
- Increased demand for online learning: The COVID-19 pandemic has accelerated the adoption of online learning, creating opportunities for universities like FFU.
External Threats:
- Cybersecurity threats: The increasing sophistication of cyberattacks poses a significant threat to universities.
- Competition from online learning platforms: New online learning platforms are emerging, posing competition to traditional universities.
Analysis:
The TOWS matrix reveals that FFU has the potential to leverage cloud computing to address its internal weaknesses and capitalize on external opportunities. However, the university must also be mindful of external threats and implement robust security measures.
4. Recommendations
Adopt a Hybrid Cloud Strategy: FFU should adopt a hybrid cloud model, combining the benefits of public and private cloud platforms. This approach allows for flexibility, scalability, and cost optimization while maintaining control over sensitive data and applications.
Prioritize Cloud Migration: FFU should prioritize the migration of critical applications and infrastructure to the cloud, starting with applications that are most resource-intensive or prone to security vulnerabilities.
Implement a Phased Approach: The cloud migration should be implemented in phases, allowing for gradual transition and minimizing disruption to university operations.
Invest in Cloud Security: FFU must invest in robust cloud security measures, including data encryption, access control, and regular security audits.
Develop a Cloud Management Strategy: FFU should develop a comprehensive cloud management strategy, including policies for cloud usage, cost management, and service level agreements (SLAs).
Train Staff: The university should provide training to staff on cloud computing technologies and best practices, ensuring a smooth transition and maximizing the benefits of the new infrastructure.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: FFU's existing IT team can be leveraged to manage the hybrid cloud environment, ensuring continuity and expertise.
- External Customers and Internal Clients: This strategy will improve the user experience for students, faculty, and staff, providing access to more powerful and reliable IT resources.
- Competitors: By adopting cloud computing, FFU can stay competitive with other universities and online learning platforms, offering a more modern and flexible learning environment.
- Attractiveness: The hybrid cloud model offers a cost-effective solution, allowing FFU to optimize spending and leverage economies of scale.
6. Conclusion
By adopting a hybrid cloud strategy, FFU can modernize its IT infrastructure, enhance security, and improve operational efficiency. This approach will enable the university to meet the evolving needs of its students, faculty, and staff while staying competitive in the rapidly changing higher education landscape.
7. Discussion
Alternatives:
- Full Public Cloud: While this option offers scalability and cost savings, it may pose security concerns and limit control over data.
- On-Premise Upgrade: This option would require significant investment and may not provide the flexibility and scalability of cloud computing.
Risks and Key Assumptions:
- Security: Implementing robust cloud security measures is crucial to mitigate cybersecurity risks.
- Data Privacy: FFU must ensure compliance with data privacy regulations when storing and processing data in the cloud.
- Integration: Integrating cloud services with existing on-premises systems requires careful planning and execution.
8. Next Steps
- Develop a Cloud Migration Plan: FFU should develop a detailed plan outlining the migration process, including timelines, resources, and responsibilities.
- Select Cloud Providers: FFU should evaluate and select suitable public and private cloud providers based on their security, reliability, and cost-effectiveness.
- Implement Security Measures: FFU should implement robust cloud security measures to protect sensitive data and systems.
- Train Staff: The university should provide training to staff on cloud computing technologies and best practices.
- Monitor and Evaluate: FFU should continuously monitor and evaluate the performance of the hybrid cloud environment, making adjustments as needed.
By taking these steps, FFU can successfully transition to a hybrid cloud model, unlocking the potential of cloud computing to enhance its operations, improve student experience, and drive future growth.
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Case Description
Charu Thomas, cofounder and CEO of Ox, a software platform provider that helped retailers improve online order fulfillment, was proud of how her business had grown and earned positive feedback from investors, beta customers, and the press. Now, in the summer of 2021, revenue was on track to meet projections, and she began a comprehensive analysis of her costs, especially cloud hosting and computing costs. Ox's software was built and relied fully on cloud services, and Thomas had originally chosen a cloud provider based on capabilities and speed to build, not on cost. When she compared her costs to those of similarly sized start-ups, she realized Ox was paying 10 times what she expected to pay at scale. Fortunately, Thomas had recently welcomed Brent Sperry, who had worked on multiple cloud initiatives, as Ox's new chief operating officer. She shared her insights into the costs of cloud providers with Sperry and proposed the next project: benchmarking and reevaluating cloud costs for Ox. They aimed to better understand which activities were driving cloud-related costs, how prices compared across cloud providers for each activity, what operational constraints, if any, Ox currently faced, and the advantages of one provider over another. In the end, would they stick with the current cloud provider? What changes would they request on their current cloud bill? Would Ox benefit from a multi-cloud strategy? This field-based case, which is used in Darden's "Digital Operations" course, includes an overview of cloud computing's history and types; student and instructor spreadsheets with an interactive cost estimating model are also available.
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