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INTRODUCTION
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Exhibit 1
Internet Options
Software as a service
SaaS
Platform as a service
PaaS
Infrastructure as a service
IaaS
WHAT IS PAAS?
PaaS is a way for companies to take advantage of cloud
technologies to help contain or
drastically reduce IT expenditures. PaaS provides the entire
infrastructure needed to run
applications over the Internet. It
is delivered in the same way as
a utility like electricity or water.
Like a utility, PaaS is based on a
metering or subscription model,
so users only pay for what they
use and the service provider
can spread its IT costs over a
broad base of customers. The
economies of scale possessed by
Salesforce.com, Google, MicroDOI 10.1002/jcaf
FUTURE OF PAAS
The potential for growth of
PaaS over the next five years is
the main reason for our focus on
PaaS. A survey by the Sand Hill
Group of vendor executives shows
that 85 percent of these executives
feel that PaaS will provide them
with their greatest revenue over
SaaS and IaaS in the next five
years.1 The federal government,
in its Federal Risk and Authorization Management Program
(FedRamp), argues that PaaS
should be the driving agent of the
governments move to the cloud.2
The Garner Group projects that
the market for PaaS will grow
greatly in the next five years.3
Decision makers at the CFO
and CIO level are becoming
more comfortable with Internet
options, through the success of
cloud computing. Therefore,
they are more willing to examine
the risk/reward issues of placing their bets by moving their
IT operations to the Internet.
The success of early adopters
taking advantage of the benefits
of PaaS in comparison to those
unwilling to move their application process to the cloud will
probably tell the future of PaaS.
Our bet is that many firms will
quickly follow the early adopters
to PaaS.
2012 Wiley Periodicals, Inc.
ADVANTAGES OF PAAS
Now that PaaSs bright
future is explained, we will
examine its advantages and risks.
The first one that stands out
and gets the attention of CFOs
is the cost savings available by
using PaaS. With no equipment
to buy, the lack of up-front costs
will benefit those living within
a limited IT budget. There is
also no maintenance cost since
there is no infrastructure. With
the IT department not having to
deal with the bottom half of IT
infrastructure, it can allocate its
resources to developing its business applications where the firm
can derive its greatest benefit.
As with all Internet
options, moving the application to the PaaS environment simplifies the firms
IT structure. The firm is
no longer tied to any particular location. Rather
than spending money on
several server locations to
provide coverage for all
the firms business locations, the firms employees
can access the application
from any Internet portal.
Since duplicate server banks are
no longer needed, this frees up
funds that can be reallocated to
other areas.
Additionally, since the application environment provides
pretested technologies and multiple tools, it lowers the risks and
costs of application development.
Since the PaaS environment has
these advantages, certain tasks
can be performed by less experienced and less costly personnel.
The personnel will also have
the advantage of working in the
environment that the applications
will be run on. This avoids the
problem of it testing well in the
lab and having problems in the
real environment.
DISADVANTAGES OF PAAS
As with any cloud choice,
choosing a PaaS environment
PaaS offer the advantages of letting the vendor worry about security
updates and backup and disaster
recovery plans. Such time-consuming
tasks are no longer the users
problem.
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EXAMPLE OF A PAAS
Since what PaaS is is still
being defined, it might be
helpful to examine a currently
viable PaaS vendor. For this
we chose the offering from
Salesforce.com, Force.com. It
was a natural outgrowth of its
success as a SaaS. Salesforce
.com offers the standard SaaS
for customer relationship software. Within Salesforce.com,
users have a full-blown CRM
tool that has allowed many
DOI 10.1002/jcaf
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DOI 10.1002/jcaf
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Exhibit 3
Services Offered
AppFog
Apprenda
Cloud Foundry
CodeRun
Engine Yard
GridGain
LongJump
NetSuite
OpenShift
Free, cloud-based application platform for Java, Perl, PHP, Python, and Ruby
applications
SalesForce
Stackato
Windows Azure
WorkXpress
.salesforce.com/showcase/#cloud=forcecom
&view=grid&sort=industry&filter=.
5. Sullivan, D. (2012). The cloud: Platform
as a service considerations. Retrieved
from http://www.tomsitpro.com/articles/
platform-as-a-service-paas-cloud-computing
-appscale-ssl-tunnel,2-252.html.
Kurt Fanning, PhD, CPA, CMA, CISA, CIA, is an associate professor at Grand Valley State University. He
was a faculty member at Central Missouri State University and the State University of New York, New Paltz,
before coming to GVSU in 2000. Dr. Fanning has written articles for publication in scholarly journals such
as the International Journal of Intelligent Systems in Accounting, Finance and Management, Accounting,
the Journal of Corporate Accounting & Finance, New Review of Applied Expert Systems and Emerging
Technologies, and Financial Studies Journal. His primary teaching and research interests are in management fraud, accounting information systems, artificial intelligence, and managerial accounting. He also
has a CPA license from New York. In addition, he holds the CMA, CISA, and CIA professional certifications.
David P. Centers, MBA, is an accounting instructor at Grand Valley State University. Previously, he worked
in the governmental, industrial, and not-for-profit sectors as an auditor, plant controller, and controller.
DOI 10.1002/jcaf
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