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CHAPTER ONE

INTRODUCTION 

BACKGROUND OF THE STUDY

Cloud computing is a model for enabling ubiguitions, convenient, on-demand network access to a shared pool of configurable computing resources (e.g. networks, servers, storage applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Although this widely adopted description of what makes a cloud computing solution is very valuable, it is not very tangible or easy to understand. Why is cloud computing different than just visualizing alone which is commonly mistaken to be cloud computing as well. Cloud computing is composed of five essential characteristics, three deployment models and four service models. The essential characteristics consist of;
A. On-demand self-service;  users are able to position cloud computing resources without requiring human interaction, mostly done through a web –based self-service portal (management console)
B. Board network access; cloud computing resources are accessible over the network, supporting heterogeneous client platforms such as mobile devices and workstations.
C. Resource pooling; service multiple customers from the same physical resources, by securely separating the resources on logical level.
D. Rapid elasticity; resources are positioned and released on demand and/or automated based on triggers or parameters. This will make sure your application will have exactly the capacity it needs at any point in time.
E. Measured service; resource usage are monitored, measured and reported (billed) transparently based on utilization. Therefore cloud computing is much more than just visualization. IT’s really about utilizing technology as a service. Users need little to no knowledge in the details of how a particular service is implemented, on which hardware, on how many CPU’s and so on. All that is important for a user is to have a good understanding of what the service offers and what it does not and how to operate the self-service portal. 
When it comes to outsourcing everyone has a tale of woe. Some software vendor that outsources a new development project could not meet dead line because they were amateur so they switch from one platform to another. But the big question is who reach the platform, did the customer work daily? (NO). Did it have automated status reputing (it did not) Outsourcing is a key part of ever modern IT group. The problem is, we still don’t seem to do it well. Hence many business technology professional fire vendors within a short period of time. Companies using IT outsourcing speak of the importance of managing outsourcing better. One of the growth of cloud computing and software as a service initiatives. IT outsourcing is moving up the stack as vendors take over increasingly strategic functions. Nearly six to ten IT shops outsource some critical function. Management, engineering or development, almost one fourth keep executive and management functions in-house but look to outsource everything else as companies relies more on outsiders, a lack of oversight , management and even monitoring can have catastrophic consequences. Cloud computing blurs the lines between what had been conventional outsourcing and internal operations and it will test IT’s management and control policies. Therefore the research seeks to investigate cloud computing as a better means of IT outsourcing.
STATEMENT OF THE PROBLEM
The problem confronting this research is to investigate cloud computing as a better means of IT OUTSOURCING
RESEARCH QUESTIONS
1.     What is cloud computing
2.     What is IT OUTSOURCING
3.     What is the role of cloud computing as a better means of IT OUTSOURCING
OBJECTIVES OF THE STUDY
1.     To determine the nature and characteristics of cloud computing
2.     To determine the nature of IT outsourcing
3.     To highlight the role of cloud computing as a better means of IT outsourcing  
SIGNIFICANCE OF THE STUDY
1.     The study shall be of immense importance to IT companies and IT professionals
2.     The study shall provide a structural framework on the application of cloud computing as a better means of IT outsourcing
3.     It shall serve as a reference point that of information on cloud computing as a better means of IT outsourcing  
STATEMENT OF HYPOTHESIS
Hypothesis 1
Ho, the growth of cloud computing is low
H1, the growth of cloud computing is high  
Hypothesis 2
H0, the level of IT outsourcing is low
H1, the level of IT outsourcing is high  
Hypothesis 3
H0, the impact of cloud computing on IT outsourcing is low
H1, the impact of cloud computing on IT outsourcing is high
SCOPE OF THE STUDY
The study focuses on cloud computing as a better means of IT outsourcing  
DEFINITION OF TERMS
CLOUD COMPUTING: Cloud computing is a model for enabling ubiquitous, convenient, on-demand and network access to a shared pool of configurable computing resources (e.g.  networks, servers, storage, applications and services) that can be rapidly positioned and released with minimal management effort or service provider interaction . Edwin .s (2014)