Answer the questions based on the information provided below. This is an extension to a case study you saw in GA $1.$ However, the following questions only refer to the information provided below. A pdf file for the following case can be downloaded here.

IT Systems Decisions at Revive, Inc.

Revive Inc. is a small, but growing company that is preparing for its Initial Public Offering $($IPO$).$ One day, Revive CEO Rami Gabriel traveled to New York City to meet with the investment bankers hired to underwrite his company's IPO. Gabriel mentioned that Revive was considering issuing a request for proposal $($RFP$)$ for a new ERP system. Gabriel stated during the meeting that an ERP was necessary to support his young company's growth. However, the actual selection and implementation process was to take place after the IPO. Gabriel asked the investment bankers how this approach would be viewed by the financial markets. Alexander Bale of Banque de Suisse was first to respond:

I think it may be better to complete the vendor selection process first. If you select an established and stable system that many of the top suppliers and retailers in your industry are using, that will send a positive signal to the market. Nevertheless, it$$s also important to explicitly communicate that the implementation will only occur after the IPO.

The remaining bankers all agreed with Bale. Gabriel was now tasked with beginning a process with which he had little experience. However, this is why he had hired IT Specialists, Reza Singh and Leslie Chang. Before leaving for Boston, Gabriel scheduled an emergency IT systems planning meeting with his team.

IT Systems Planning Meeting:

CEO Rami Gabriel began the discussion:

The bankers think we should begin the vendor selection process before the IPO. Their reasoning is sound, and after all, they$$re the experts on this matter. So$,$ we need to begin the process ASAP. Leslie, you$$re leading this. What are our options?

IT Specialist Leslie Chang responds:

There$$s a standard software vendor selection process. It will require a project team, and given that our staff has limited experience with such projects, I will bring in consultants that I$$ve worked closely with on similar projects. But, to answer your question, we have two general solutions to choose from. One is hosting the ERP software on$-$premises; meaning in our own facilities, on our own hardware, and within our own firewall. The second option is cloud computing. Many companies are migrating to the cloud to manage their internal business processes. As a young and growing company, this is likely our best option.

CEO Rami Gabriel interjects:

I$$m not sure about cloud computing. We$$re establishing a network of our own retail shops and we can$$t afford any outages. And given that we would be reliant on a vendor, there is a greater possibility of that happening. Plus, we$$re in talks with local partners to begin establishing retail shops in emerging markets. I know from my experience that some of these countries frequently experience IT network disruptions. If that was to happen, how could we access our data and run our day to day processes?

IT Specialist Leslie Chang responds:

These are all very good points. There are advantages and disadvantages to cloud$-$based solutions. I will be sure to consider them in the project proposal. In the meantime, here is a list of the various cloud computing models and their corresponding advantages $($Chang hands the list to Gabriel to look over$).$

IT Specialist Reza Singh adds:

What about SCM software sources? What do you recommend, Leslie?

IT Specialist Leslie Chang responds:

We don$$t need to complicate things. We don$$t have the necessary expertise to develop in$-$house software. Moreover, sourcing separate modules from different providers are complicated and unnecessary for the scope of our operations. So$,$ the best option is to source all modules from the same vendor.

CEO Rami Gabriel interjects:

When you say SCM software sources, does that necessarily mean our staff must run the software and perform all business processes? Don$$t a lot of retailers outsource those activities to $3$PLs$?$ It would definitely help on the cost side. It wouldn$$t require heavy capital expenditures on software and hardware. And we can reduce operating costs by taking advantage of their scale. We should focus on our core business, and as Leslie mentioned, we don$$t have the necessary expertise in$-$house.

IT Specialist Reza Singh adds:

All true, Rami. But a cloud$-$based ERP solution provides us with similar benefits. Besides, many $3$PLs use cloud solutions. And integration on the cloud is easier and doesn$$t require EDI implementation and maintenance, which is costlier$.$ Plus, there are criteria to consider other than cost. We need to ensure the system features fit our general processes and needs. Also, it must expand and grow with the firm. Integration with our upstream and downstream partners is als