1. Business Case for upgrading ICT Data Security System of KD Insurance PLC to Accommodate Cloud Computing By Keerthi Delwatta: Chief Information Officer. 9/17/2014 1

2. Agenda What is Cloud Computing Advantages and Disadvantages Business Proposal Financial Analysis Conclusion List of References 9/17/2014 2

3. Purpose of Presentation To enlighten CEO, Board and Executives on Cloud Computing to upgrade the ICT Data Security System of the company to protect clients and firms data. 9/17/2014 3

4. Cloud Computing in Insurance Industry How the Cloud is utilized : Data is stored in the off site virtual server owned by a service provider on the basis of actual usage. Associated Risk: Loss of control over software application. Over Dependence on service provider for Maintenance, Upgrading and Management. Experiences of other Companies: Very positive and Encouraging. 9/17/2014 4

5. Cloud Computing in Insurance Industry Advantages : Economies of scale Scalable Processing & Application Minimum Capital Investment Speedy Implementation Higher Productivity Disadvantages: Extreme Dependence on the Service Provider Loss of control over software application Compromise confidentiality & Privacy 9/17/2014 5

6. Cloud Computing in Insurance Industry Scope of Recommendation: Upgrading ICT Data security system to protect Clients and Firms own data. To synchronize and ensure integrity of data on servers and end user devices. Infrastructure Requirements: Cloud specific software applications Improved Communication Network Facilities 9/17/2014 6

7. Financial Feasibility Base Case Analysis: 7 Base case analysis of cloud computing to accommodate ICT Data security system of K D Insurance Plc. year 0 1 2 3 4 5 6 Relevant benefits (millions) Reduced costs of capital $0 $25 $30 $30 $35 $40 $45 Improved productivity $0 $25 $30 $40 $60 $75 $80 Reduced insurance $0 $20 $20 $30 $40 $50 $60 Total improvements (A) $0 $70 $80 $100 $135 $165 $185 Relevant costs policy development and maintenance $0 $40 $45 $55 $55 $60 $70 software acquisition $40 $10 $10 $10 $10 $10 $10 support team $25 $10 $10 $10 $10 $10 $10 incremental maintenance $0 $0 $10 $10 $10 $10 $10 training $10 $5 $0 $0 $0 $0 $0 Total costs (B) $75 $65 $75 $85 $85 $90 $100 Net cash flow -$75 $5 $5 $15 $50 $75 $85 9/17/2014

8. Financial Feasibility 8 Pay back Period 04 Years $ 73million 28.4 %d NPV @ 10% IRR Profitability Index 1.98d 9/17/2014

9. Sensitivity Analysis Criteria: Policy Development & Maintenance Cost: Recommendation: Policy Development & Maintenance Cost is highly sensitive to Net Present value and hence should be properly controlled. 9 100% Policy Development & Maintenance Cost 314% Net Present Value 9/17/2014

10. Sensitivity Analysis Criteria: Incremental maintenance cost Recommendation: Maintenance cost is relatively sensitive to Net Present value and hence should be controlled. 10 100% Maintenance cost 47% Net Present Value 9/17/2014

11. Sensitivity Analysis Criteria: Productivity Recommendation: Productivity is highly sensitive to Net Present value and hence should be properly monitored to ensure desired results. 11 100% Productivity 288% Net Present Value 9/17/2014

12. Conclusion Cloud Computing is highly advantageous to the company as it enhance the productivity , increase efficiency of the ICT Data Security system while minimizing the cost and hence I seek your authorization and financial support for immediate implementation of the project. 9/17/2014 12

13. Lessons learnt from Conducting the Research The risk mitigation strategy of adopting a Private Virtual Infrastructure(PVI) Model to share responsibility for Security of Cloud Computing between information owner and service provider has been evolved which is encouraging. 9/17/2014 13

14. Lessons learnt from Conducting the Research Trusted Virtual Machines Identification Technique has been evolved to ensure proper management of virtual machines in the data center that encourage cloud computing. 9/17/2014 14

15. List of References 1. Kenneth, C, Loudon, Jane P. Loudon 2014,Management Information systems, Thirteenth Edition, Pearson, England. 2. Das, T K ., and Teng, B.S. (1999), Managing risks in strategic Alliance, Academy of Management Executives, Vol. 13 No. 4, pp. 50 -62 3. J.Heiser and M. Nicolett, Accessing the Security Risk s of Cloud Computing, Gartner, inc., Stemford, Ct, 2008. 4. M. Armbrust, A. Fox, R. Griffith et all., Above the Cloud: A Berkeley View of Cloud Commutating, University of California , Berkerley, Berkerly, CA, 2009, 5. Greenberg, A., Hamilton, J., Maltz, D.A., Patel, P. (2009). The Cost of a Cloud: Research Problems in Data Center Networks, ACM SIGCOMM Computer Communications Review. 6. Undheim, A., Chilwan, A., Heegaard, P. (2011). Differentiated Availability in Cloud Computing SLAs, Proc. GRID conference, pp. 129136. 7. Menasc, D. A, Ngo, P. (2009). Understanding Cloud Computing: Experimentation and Capacity Planning, Proc. Computer Measurement Group conference 8. http://www.ibm.com/developerworks/cloud/about.html 9/17/2014 15