Paper Summary:

This report presents the CEO of Ausmatrix with information about the advantages of an integrated IT infrastructure and the use of Application Service Providers ASPs) to streamline business processes, cut costs and make the business more competitive. Next, the author reviews the alignment of business and IT strategies, the advancement of business strategies using IT, the value of implementing a distributed network for the organisation and the advantages of outsourcing and the risks that are inherent in this approach. The paper recommends that, since IT is not the core business of Ausmatrix, the needed complex IT infrastructure and applications be run by 3rd party vendors thus freeing up the Ausmatrix staff to concentrate on the business they know best.

Table of Contents:
Executive Summary
Table of Contents
Technology as a Driver in Business Strategy
Advancing Business Strategies through Infrastructure
Infrastructure Integration versus Infrastructure Improvement
Value of Networks
Using ASPs - Risks and Opportunities
Security Concerns When Using Asps and Integrated Infrastructures
Conclusion

From the Paper:

"ASPs are utilised by organisations in order to perform processes and calculations on data using software not available within the organisation. As such the data must pass through the public domain via the Internet. This introduces a concern regarding data security. In some cases, this concern is a regulatory concern, such as where government regulations prohibit transfer of data over borders or the non-secure transfer of sensitive financial or national security data. The European Union has very stringent laws regarding the transfer of personal data to countries outside the EU. Data transfer is prohibited when the receiving country is unable to provide the same level of data security as required by EU directives. These issues become relevant when an organisation situated in the EU wishes to outsource its data processing to an ASP. "Since ASPs have many customers, there is a danger that proprietary information from an organisation may be exposed to the ASPs other customers. As the adage goes that a chain is as strong as its weakest link, an organisation's data security is likewise as safe as its weakest point - and by allowing access to data to a 3rd party vendor, the organisation essentially gives up some control of that data."

Sample of Sources Used:

• Henderson, J.C & Venkatraman, N. 1999, "Strategic Alignment: Leveraging information technology for transforming organizations", IBM systems Journal vol. 38, no. 2-3
• Klein, M & Rondy, J 2009, "Transforming IT from cost center to business driver (WTN News)", viewed 10 December 2011, http://wtnnews.com/articles/5697/
• Wrenn, C. 2005, "Infrastructure Integration", Wall Street and Technology, viewed 11 December 2011, http://www.wallstreetandtech.com/it-infrastructure/164903463
• "IT Optimization: Driving Infrastructure Value", IBM Global Services, viewed 11 December 2011, www-935.ibm.com/services/us/its/pdf/g510-1705-04.pdf
• Staten, J 2011, "How much infrastructure integration should you allow? | ZDNet", viewed 14 December 2011, http://www.zdnet.com/blog/forrester/how-much-infrastructure-integration-should-you-allow/482

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