The subject is cloud computing

Question 4 An IT company's main business is software development. Consider migrating the on-premise system to cloud in a 2-year time frame. It hosts a database with 500GB data and they subscribe a network plan with unlimited usage. The outbound network usage per month is 700GB Here is the cost of on-premise IT infrastructure: Hardware cost $100,000 Development tool yearly license fee $40,000 Labor cost for a year $3,000 On-Going costs for a year $5,000 (including network plan subscription) Here is the cost of cloud: Hardware cost Development tool yearly license fee Labor cost for a year Monthly database storage fee Monthly outbound network usage fee $?? $?? $1,000 $12/GB $1.5/GB (a) By adopting the cloud approach, how much will the hardware and development tool license fee (see the above table about the cost of cloud) be? Explain. [5 marks] (b) Which approach (using on-premise IT infrastructure / using cloud) should be adopted? Justify your answer with calculation. [15 marks]