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Discussion Question: Many enterprise organizations believe that cloud computing is essential to their business operations. There are some; however, that argue it is not cost efficient and operationally appropriate. Provide a use case where cloud computing is not appropriate and explain why you feel this is an appropriate decision for the enterprise. Other reference sources: Cloud adoption to accelerate IT modernization

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Cloud computing has revolutionized the way enterprises manage their IT infrastructure by offering scalable, flexible, and cost-efficient solutions. However, despite its numerous advantages, cloud computing is not universally suitable for all organizational needs. Certain scenarios demand careful consideration, especially when the operational or security implications outweigh potential benefits. One prominent use case where cloud computing may not be appropriate involves organizations handling highly sensitive or classified data, such as government agencies managing military or intelligence information.

In such cases, the primary concern is data privacy and security. Cloud environments are inherently shared spaces, even when using private clouds, there remains a risk of data breaches, insider threats, or cyberattacks. Governments and defense organizations often possess highly sensitive information that, if compromised, could threaten national security. Therefore, maintaining data on-premises within highly secured data centers offers greater control and assurance. These facilities are subjected to rigorous security protocols, physical controls, and compliance standards that might be difficult to replicate or enforce within public cloud environments.

Moreover, compliance requirements like the International Traffic in Arms Regulations (ITAR), Federal Information Security Management Act (FISMA), and other national security mandates impose strict restrictions on data handling, storage, and transmission. Organizations subject to such regulations often prefer to maintain their critical data infrastructure internally to ensure compliance. The cost and operational complexities of achieving equivalent security and compliance levels in the cloud can be prohibitively high, thus making on-premises solutions more viable despite the potential costs.

Another consideration is latency and real-time processing needs. Certain military or intelligence operations require real-time data processing with minimal latency, which can be challenging with cloud-based systems due to network delays or bandwidth constraints. For instance, satellite data analysis or battlefield command centers often necessitate immediate processing capabilities that are best supported by on-site infrastructure to avoid any delays that could compromise operational effectiveness.

Furthermore, organizations with legacy systems that are not compatible with cloud technologies might find cloud migration impractical or risk-intensive. The costs related to software rewrites, system integrations, and workforce retraining can outweigh the benefits, especially when existing systems efficiently serve the organization's purpose.

In addition to security and technical considerations, economic factors also play a role. While cloud computing typically promises cost savings, the ongoing subscription, bandwidth, and data egress costs can accumulate significantly over time, especially for organizations with massive data storage requirements or high computational needs. For sensitive operations, the total cost of ownership might ultimately favor maintaining on-premises infrastructure, particularly when factoring in the potential costs associated with data breaches or non-compliance penalties.

In conclusion, organizations handling highly sensitive or classified data, requiring real-time processing, or operating legacy systems may find cloud computing unsuitable. For these enterprises, maintaining on-premises infrastructure provides greater control, security, and compliance, which justifies the higher initial investment and operational overhead. While cloud technologies drive modernization and agility for many sectors, specialized use cases demand a tailored approach that prioritizes security, compliance, and operational integrity over cloud adoption.

References

• Stair, R. M., & Reynolds, G. W. (2018). Principles of information systems. Boston, MA: Cengage Learning.
• Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing — The business perspective. Decision Support Systems, 51(1), 176–189.
• Buyya, R., Broberg, J., & Goscinski, A. (2011). Cloud computing: Principles and paradigms. Wiley.
• Rimal, B. P., et al. (2016). Cloud Security and Privacy: An Enterprise Perspective on Risks and Compliance. IEEE Computer.
• Gartner, Inc. (2023). Challenges of cloud security and compliance. Gartner Reports.
• US Department of Defense. (2014). Defense Federal Acquisition Regulation Supplement (DFARS) and Cybersecurity standards.
• Roughan, M., & Raghunathan, A. (2012). Ensuring data security in the cloud. IEEE Security & Privacy.
• Amoroso, E. G. (2012). Cyber security and the cloud. Elsevier.
• Jansen, W., & Grance, T. (2011). Guidelines on Security and Privacy in Public Cloud Computing. NIST Special Publication 800-144.
• Fehling, M., et al. (2014). Cloud Computing Patterns: Fundamentals to Design, Build, and Manage Cloud Applications. Springer.