Considreations on

infrastructure renwal plan

By CIO Sisard Fates

Index

1. ABC Inc. Overview

● Main Activity
● IT Infrastructure
● Data Analysis
● Business Model

2. Technological Renewal Cycle

● Recommendation

3. Argumentation for Cloud Transition

● Industry Outlook and Growth Projections

● Current System Utilization
● Efficiency and Focus on Core Services
● Flexibility to Respond to Market Conditions
● Future-Proofing Technology Stack
● Enhanced Security and Compliance
● Improved Disaster Recovery and Business Continuity

4. Cost Analysis

● Graph Illustration

5. Conclusion

● Strategic Goals Alignment

● Long-Term Benefits
I wanted the base my proposal on the real company ABC(American Broadcasting Company)
which in a first superficial research i assumed to be a radio company(later i found it is much
more) so the project is oriented on this basis of radio company

1.ABC Inc. Overview

Main Activity:

ABC Inc. primarily operates in the radio broadcasting industry. The company
manages a network of antennas and telecommunications infrastructure to
deliver radio content to its audience.

IT Infrastructure:

ABC Inc. leverages its sophisticated IT infrastructure to efficiently manage its

broadcasting operations. This includes:

● Monitoring and controlling antennas

● Ensuring seamless transmission of radio signals
● Maintaining high-quality audio broadcast standards

Data Analysis:

In addition to its core broadcasting activities, ABC Inc. engages in data

analysis. Although radio is not traditionally the strongest sector for data
analytics, ABC Inc. collects and analyzes audience data to:

● Understand listener demographics and preferences

● Improve content delivery
● Enhance listener engagement

Business Model:

The primary revenue stream for ABC Inc. is through advertising. By delivering
targeted advertisements to its listeners, the company capitalizes on its audience
reach and engagement to attract advertisers.
 2.Technological Renewal Cycle
As the Chief Information Officer (CIO) of ABC Inc., we are at a pivotal moment where a
critical decision must be made regarding our technological renewal cycle. The options before
us are to either renovate our current on-premises infrastructure with more modern features
(TechRefresh) or to move our entire architecture to the cloud in Platform as a Service (PaaS)
mode. After careful consideration of our current situation and future projections, it is my
recommendation that we should move our infrastructure to the cloud. Here’s a detailed
argumentation for why this strategy is the most beneficial for ABC Inc.

3. Argumentation for Cloud Transition

Industry Outlook and Growth Projections

The radio sector is not expected to experience significant growth in the coming years. Given
this projection, investing heavily in new on-premises infrastructure may not be the most
prudent use of our resources. On the contrary, moving to the cloud allows us to be more
agile and responsive to changing market conditions without committing to large, upfront
capital expenditures. This flexibility is crucial in an industry where the growth trajectory is
uncertain.

image extracted from Radio/TV station annual outlook 2022 | S&P Global Market Intelligence
(spglobal.com)
Current System Utilization

Our current on-premises infrastructure is underutilized. This underutilization implies that we

are likely over-invested in hardware and maintenance for capacity that we do not need.
Moving to a cloud-based PaaS model would enable us to scale our usage up or down based
on actual demand, ensuring that we are only paying for the resources we use. This would
result in significant cost savings and a more efficient use of our technology budget.

Efficiency and Focus on Core Services

One of our primary objectives should be to maintain the same level of service but in a more
efficient manner. Cloud infrastructure offers numerous efficiencies over traditional
on-premises setups:

● Reduced Maintenance: Cloud service providers handle much of the routine

maintenance and upgrades, freeing up our IT staff to focus on more strategic
initiatives.
● Scalability: With cloud services, we can easily scale our resources to match our
needs. This is particularly important given the underutilization of our current systems.
● Cost Efficiency: Cloud solutions typically operate on a pay-as-you-go model, which
aligns costs more closely with actual usage. This can lead to substantial cost savings
compared to the fixed costs of maintaining on-premises infrastructure.

Flexibility to Respond to Market Conditions

In a scenario where demand for our services slows down, the ability to scale down our
operations quickly and efficiently is vital. On-premises infrastructure lacks this flexibility, as
we would still be burdened with the costs associated with maintaining and operating
hardware regardless of usage levels. In contrast, a cloud-based infrastructure allows us to
adjust our capacity dynamically, ensuring that we are not over-investing during periods of
lower demand.

Future-Proofing Our Technology Stack

Technology is evolving rapidly, and the cloud offers a pathway to keep our technology stack
current without the need for constant, large-scale capital investments. Cloud providers
continually update their offerings with the latest technologies, security features, and
compliance standards. By leveraging these advancements, we ensure that our infrastructure
remains up-to-date and competitive without the continuous cycle of expensive upgrades that
an on-premises solution would require.

Enhanced Security and Compliance

Cloud service providers invest heavily in security and compliance. They employ robust
security measures and are often better equipped to handle the complex and evolving threat
landscape than individual companies. By moving to the cloud, we can leverage these
advanced security protocols and ensure that our data and operations remain secure and
compliant with industry regulations.
Improved Disaster Recovery and Business Continuity

Cloud solutions typically offer superior disaster recovery and business continuity options
compared to on-premises systems. With data replication across multiple geographic
locations, cloud services provide a higher level of resilience against data loss and downtime.
This is crucial for maintaining our operations and ensuring that our services remain
uninterrupted in the event of a disaster.
4. Cost analysis

This graph illustrates the cost comparison between on-premises infrastructure and Microsoft
Azure cloud services over five years, showing a steeper increase in on-premises costs,
which exceed 2 million dollars, compared to Azure costs, which remain under 1.5 million
dollars. Despite initial setup costs being similar, on-premises expenses escalate due to
factors like hardware depreciation, maintenance, energy consumption, and IT staffing needs.
In contrast, Azure's slower cost growth reflects the efficiency of cloud services, with
maintenance, upgrades, and support managed by the provider. Ignoring the cloud's flexibility
and scalability, the cost savings alone, as depicted in the graph, justify the financial
prudence of migrating to Azure, offering substantial long-term economic benefits.
5. Conclusion
Transitioning to a cloud-based PaaS model presents numerous advantages for ABC Inc. It
aligns with our strategic goal of maintaining high service levels in a more efficient manner,
provides the flexibility to adapt to market conditions, and positions us for future technological
advancements. Given the current underutilization of our infrastructure and the uncertain
growth in the radio sector, moving to the cloud is a prudent and forward-thinking decision
that will benefit our company in the long term.

By embracing the cloud, we not only ensure that we are operating efficiently today but also
set the stage for future innovation and agility. This move will enable us to focus on our core
competencies, reduce costs, enhance security, and improve our overall operational
resilience. Therefore, it is my recommendation that ABC Inc. moves forward with
transitioning our infrastructure to the cloud.