Reflection:
After going through the pros
and cons of each alternative and attending the presentation given by
consultants, PaaS seems to be the best option. Once Kingo works out the desired
platform, it provides hardware, storage, network capacity and basic software
functionality. It requires only three days for implementation along with
migration of data. It doesn’t require Kingo to have a server for installation as
it is managed by third party. This system provides remote access and central
database which minimizes the errors and eventually increases customer
satisfaction. If further customization is needed, if can easily be done for $180
per hour. And if at any time Kingo thinks this system is not fulfilling his
business needs he can cancel it by giving one month notice.
As Kingo’s business expands
and its operating demands grow, he can migrate the IT system to Enterprise Resource
Planning (ERP). ERP is built around a central database that is remotely
accessible and can integrate business processes in all departments including
Purchasing, Sales, Customer Service, Finance and Human Resources. Although ERP
system is more costly at $500 per license per year, it will eliminate the
limitations of PaaS. Seeing continued growth of business and as revenues increase,
the additional cost of ERP can be offset by the performance gain and more
efficient operations in all departments.
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