The Outsourcing Fundamentals For Dell Computers

The Outsourcing Fundamentals For Dell Computers Dell is one of the leading PC manufacturers in the world. Its business strategy involves outsourcing a number of its operations such as sales order processing, distribution, after sales service. The focus of this report will be to critically evaluate and analyse one such outsourcing project of Dell of its technical support which was considered a failure. There are a number of reasons why Dell chose to outsource its technical support call centre. The main reason for doing so is that Dell saw this part of its operations as non core. It decided to outsource in order to concentrate on its core business processes which were manufacturing and design. The cost savings that an outsourcing deal offered also was a major factor in it doing so. Other factors such as to gain accesses to world class facilities , to share the risk involved, to accelerate redesign engineering process were also critical. After having decided to outsource a deal with Stream Global Services was struck. Stream took its call centre in India to operate the entire tech support of Northern America. After the first term of the contract the deal was called off and Dell decided to back source the tech support from Stream and bring it back in-house. The report analysis the key issues for the failure of this deal. One of the most important issues that resulted in the failure of this outsourcing deal is the drop in quality of service. After initial period the quality of service provided by Stream went down considerably which resulted in unsatisfied customer and complaints. This resulted in fall of sales and loss of market share. Other issues such as loss of control over the operations and loss of tacit knowledge, unable to meet the customer demand due to large increase in customer base, loss of intellectual property, lack of expertise too played a critical factor in its failure. The tip of the iceberg came when n egotiating a contract extension and Stream demanding more, which lead to Dell calling off the whole deal. Critical analysis shows that tech support may be a core competence of Dell, which they had to retain more control over. The possible recommendations are to offshore the call centre to a cost efficient location rather than outsource it. Put in a confidentiality agreement in place in order to protect from loss in intellectual property. Negotiate smaller lengths of contract and to choose quality over price as main criteria while evaluating vendors for outsourcing in the future. Contents 3 Introduction 4 Why Outsource 5 Non core function 5 Gain Access to World-Class Capabilities 6 Cost Saving 6 Accelerate Reengineering Benefits 6 Share Risks 6 Redirect Resources to more Strategic Activities 7 The Stream Story 7 What went wrong 8 Quality of Service 8 Loss of Control 8 Viability of Service Provider 8 Relative Size of Customer 8 The Issue of Trust 9 Lack of Expertise 9 Hidden and Uncertain Costs 9 Tip of the Iceberg 9 Conclusion Recommendation 10 1 . Offshore not out-source : 10 2. Confidentiality Agreements: 11 3. Quality over price: 11 4. Short term contracts : 11 References 12 Appendix 13 Appendix I 14 Sales of Dell from 1999- 2007 14 Appendix II 14 Market Share of PC Manufacturers 14 Introduction Dell is a multinational computer company which has managed to stay in the first place of computer system sales for over a decade. Ranked in the top 50 among the Fortune 500, Dell offers a range of IT products and services, including hardware, software, consulting services, support services, and managed services. Dell employs more than 100,000 employees at services, manufacturing, and design locations around the world. Its strong and revolutionized strategy of direct selling computers to the customers increased its success in the computer companies field providing it with a competitive advantage. Dell was founded in 1984 by Michael Dell a 19-year old teenager and it was named as PCs Limited. Starting with a capital of $1000 and the aim of selling IBM PC-compatible computers he managed to establish Dell as one of the most worldwide successful and profitable companies only after the first years of its function. The first year gross revenues amounted to $6 million. In 1985 Dell introduce d the first computer of its own design- the Turbo PC. In 1988 the company made its initial public offering at $8.50 a share and was renamed to Dell Computer Corporation.    By 1990 it had been expanded in 12 different countries. Six years later(1996), Dell began selling computers via its web site and offered online technical support at the same time and by the 1997 Dell was one of the top five computer makers in the world. As one of the worlds leading direct computer systems companies and a premier supplier of technology for the Internet infrastructure, Dells competitive advantage is its direct customer focus. Constant interaction with its customers online and via the telephone gives Dell the ability to understand unique computing needs that drive individual and enterprise productivity. Even though growth rates for the computer industry are expected to be less than previous years, Dell can still successfully operate, enjoying healthy sustainable profits. With its unique operation strategy and reduced inventory levels gives Dell a competitive edge over its rivals. Dell chooses to outsource a whole bunch of its processes of its operations. Right from most of its production line to sales order processing to distribution to after sales service. Outsourcing allows companies to focus on broader business issues while having operational details assumed by an outside expert. The main focus of this report will be around the outsourcing of its call centre for the technical support. Why Outsource The reasons why Dell chose to outsource its technical support are as follows: Non core function The main reason for its choosing to outsource this aspect of its operations is that Dell saw the technical support operation as not part of its core competence. A core competence provides a competitive advantage through being competitively unique and making a contribution to customer value or cost (Prahalad Hamel, 1990). Long Vickers-Koch (1995) expand the idea of core competences to core capabilities. They distinguish these two by noting that competencies relate to the skills, knowledge, and technological know-how that give a special advantage at specific points of the value chain, which, in combination with the strategic processes that link the chain together, form core capabilities, (p. 12). Dell clearly identified techincal support or the call centre as a non core part of its operations. They saw themselves as clearly being a computer manufacturer who sold customised computers to the users directly and chose to concentrate on this aspect of its business which turned out to be a mistake, we will look at why this was the case in the later part of this report. Gain Access to World-Class Capabilities By the very nature of their specialization, outsourcing providers bring extensive world-class resources to meeting the needs of their customers. Dell wanted to fully utilise this specialization that many of the outsourcing vendors had to offer. Partnering with an organization with world-class capabilities would offer access to new technology, tools and techniques that the Dell may not have possessed more structured methodologies, procedures and documentation; and a competitive advantage through expanded skills. Cost Saving Cost implications are critical factor for any company when it chooses to outsource and Dell being no different. The single most important tactical reason for outsourcing is to reduce or control operating costs. Access to an outside providers lower cost structure is one of the most compelling benefits of outsourcing. The overall operating cost of the tech support would be significantly lower if the project was off shored to a more cost efficient location. Although cost benefits would not be realised in the immediate future but over the long run it promised huge cost savings. Accelerate Reengineering Benefits Outsourcing is often a by-product of another powerful management tool; business process reengineering. It allows an organization to immediately realize the anticipated benefits of reengineering by having an outside organization one that is already reengineered to world-class standards process. Dell wanted to utilise the reengineered business process of the vendor to the fullest. Share Risks There are tremendous risks associated with the investments an organization makes in information technology like a call centre. Dell believed that by outsourcing they would become more flexible, more dynamic and adaptable to meet changing opportunities. This would reduce the risk both financially and strategically in the long term. Redirect Resources to more Strategic Activities Every organization has limits on the resources available to it. Outsourcing permits the redirection of resources from non-core activities toward activities that provide a greater return in serving the customer. Dell clearly saw tech support as its non- core activity and hence thought of outsourcing as a way to redirect its resources and attention to its core business activities like manufacturing and direct sales. The Stream Story After having decided to outsource the tech support and after careful vendor evaluation the eventual order for the outsourcing deal was struck with Stream Global Services. Stream was a business process outsource (BPO) provider specializing in customer relationship management services including sales, customer care and technical support services. Tech support for the entire North America was shifted to Stream located in Mumbai, India. The contract signed was relatively short term which needed evaluation in 4 years. Although, the initial few years of the contract was a success and the company started reaping benefits from sales and profit generation. In 2007 the sales growth started to take a downward turn. Dell started to lose its market share and HP had taken over the market as the premier brand. (Refer Appendix). While there were several factors in the downturn of the companys fortunes, the outsourcing deal with Dell was also said to be a reason. After four years into the deal and wh en the time for evaluation and re contracting came along Dell decided not continue its relationship with Stream and the outsourcing deal went bust. There were several reasons for the failure of this particular deal. What went wrong Quality of Service One of the main reasons for unsuccessful deal was that the quality of service that Stream was offering gradually went down. As with any outsourcing deal the vendor tends to provide high quality service to begin with but over a period of time this quality tends to drop due to several reasons. The average time per call went up, there was more waiting time etc. Dell started to receive a lot of complaints from unsatisfied customers, which was bad for the image of the company. Their competitors started offering better after sales services and Dell started to develop this reputation of having bad customer service. This resulted in sales dropping and Dell loosing market share. Loss of Control The main business strategy of Dell was that it sold computers directly to customers. It is paramount for Dell to know the needs of its customers. After having outsourced its tech support they started to lose control over this aspect. The market and customer demands are constantly changing and its critical for Dell to always be in close conjunction with these changes. Customer feedback is a medium through which they can keep track of the changing needs, but because tech support was outsourced they realised they did not have the control over feedback like they wanted. Viability of Service Provider Dell realised that Stream were not offering the services that was agreed upon. But due to flaws in the contract it was very difficult for them to make any headway into this matter. They realised that Stream did not have the technical proficiency that they had claimed to have had, thus resulting in lower service levels. Relative Size of Customer As the sales of the company grew there were greater customers needing technical assistance. This meant that there was a huge influx of customers for Stream which they did not have the capacity to handle at that time. This resulted in service levels dropping and quality going down. The Issue of Trust Intellectual property became a key issue as well. Stream at the same time were providing services to other computer manufacturers and IT companies which were if not direct but in direct competition with Dell. Hence, confidentiality became an issue with this relationship. Lack of Expertise Dell realised that Stream lacked the technical expertise that they expected. This was but natural as Dell was the experts in designing and manufacturing the computers and they had the technical knowhow of the product. Even with extensive training Stream could not fully gain the technical expertise possessed by Dell. Hidden and Uncertain Costs As in any outsourcing deal the uncertain costs and the hidden cost are always the main reason why any deal is called off. The outsourcer in this case Dell realised that there was a lot hidden costs that was involved in the deal and thus the overall cost benefits they had expected would not be realised. Tip of the Iceberg The final nail in the coffin of the deal came when the time for re-contracting had come along. As in many of the outsourcing cases the bargaining power of the vendor increases as the years go by. Stream had the knowledge that it had the upper hand when it came down to the bargaining power and demanded more money. Dell realised this and decided to bail out of the contract extension. It was a bold decision on the part of Dell because in-sourcing or back sourcing always is a tough task for any company as knowledge transfers becomes a critical issue. Never the less the decision to bring back its technical support in-house was made. After a couple of years Dell again outsourced its tech support but after having the experience of a failed deal they were more careful with this deal. Conclusion Recommendation The first and the foremost function of any company when deciding to outsource should be to evaluate its core competence. As mentioned above core competence gives a competitive edge over the competition. Clearly the technical support for Dell computers is a core function. The main reason for this being that as we saw that the sales started to drop and one of the reasons being the poor quality of customer service. After sales service is an order winner for most computer manufacturers as most of the customer choose to buy a certain brand based on the after sales support that they offer. Based on this analysis the following recommendations can be given. All recommendations given analysis its benefits and its limitations. 1 . Offshore not out-source : Dell should look to offshore the tech support part of its operations rather than outsource. This means that they should retain control of the operation but try and move it offshore for a cheaper alternative. India, Philippines etc are cheaper alternatives that should be considered for future operations. Benefits: They will retain much more control of the operations thus retaining the tacit knowledge and be in close contact with its customers. They will retain their core competence and will not end up losing their competitive edge. Limitations: Initial capital for this is very large. Another limitation is that as in the case with outsourcing the overall cost of operations is not significantly low .This is because with a outsourcing vendor the cost can be reduced by means of economies of scale. Dell will not have this luxury and hence the cost as compared to outsourcing will be relatively high. 2. Confidentiality Agreements: In order to safeguard the intellectual property of the company, some sort of confidentiality agreement needs to be made between Dell and the vendor. Benefits: The core competence of the company will not be shared with its rivals and Dell will not lose its competitive edge. Limitations : It is very difficult to negotiate such kind of contracts with any vendor and such agreement and at times do not hold much value in certain situations and countries. 3. Quality over price: When evaluating a vendor quality and not price should be the foremost criteria. The capacity of the vendor to offer a certain kind of service should be looked upon first. Most outsourcing deals are looked at from a cost point of view and quality gets overlooked. Benefits : Improved quality standards. The vendor will have means to cope with the change in customer quantity and demand. There will be less unsatisfied customers thus enhancing the reputations of the company which is diminishing quickly for its poor customer service. Limitations: Price goes up. Quality always comes at a price and better quality means paying more for such services. These vendors will not be able to meet the price standards of the cheaper vendor which will very often be the case. 4. Short term contracts : Dell should look at signing short term deals with the outsourcing vendors. Ideally the length of the contract should be 2 -3 years after which it should be evaluated. Benefits: Gives Dell more flexibility and opportunity to evaluate the situation of the deal. If Dell feels that the service levels are not up to the mark then it will give them an opportunity to re negotiate. It will put the bargaining power in the hands of Dell. Limitations: The problem with negotiating short term contracts with vendors is that quite often they try and increase their price as they are not guaranteed return on their investment. So they try and increase their profit margins so that they can compensate it for the short length of the contract. References Christensen, Clayton M. (2001), The Past and Future of Competitive Advantage, Sloan Management Review, 42 (Winter), 105-109.   J. Barthelemy, The seven deadly sins of outsourcing,  Academy of Management Executive  17  (2003) (2), pp. 87-97. Magretta J. 1998. The power of virtual integration: an interview with Dell Computers Michael Dell. Har-vard Business Review 76(2): 72-84. Long, C., Vickers-Koch, M. (1995), Using core capabilities to create competitive advantage,  Organizational Dynamics, Vol. 24 No.1, pp.6-20. Prahalad, C. K., G. Hamel. 1990. The core competence of the organization. Harvard Business Review. May-June. Quinn, J. 2000. Outsourcing innovation: The new en-gine of growth. Sloan Management Review, 41(4): 13-29. Quinn, J. Strategic Outsourcing: Leveraging Knowledge Capabilities, Sloan Management Review (40:4), 1999, pp. 9-21.s Willcocks L. Fitzgerald G., Feeny D., (1995). Outsourcing IT: The Strategic Implications, Long Range Planning, 28, 5.

Directional Imbalances in Supply Chain

Imbalance is a concept that suggests a lack of stability, and in relation to supply chain it is one type of instability that if occurs would have substantial costs on organizations. It is a mismatch that happens along the same corridor causing large numbers of empty containers to be shipped back to the source. That means â€Å"large surplus of containers at one side and a deficit of containers on another. †1 Studies show that â€Å"the situation is the worst in the corridor between Asia and USA, there is almost three times more maritime freight going from Asia to USA that the other way around. 1 This phenomenon has several outcomes, from forgone revenue to the change of prices to the competition between modes of transport. On the other hand there are several factors that affect it. Seasonal variations for instance, that comes about due to the lack of demand for certain seasonal goods. Let’s take oil transport as an example; the oil tankers are specifically made for the transport of oil. These containers cannot be refilled with any other type of good. The shipping industry regarding containerized goods has to deal with several types of cargo which makes it easier to deal with imbalances by creating solutions and routes to outcome this imbalance. It is a different thing with oil shipping as it is imported from oil rich countries to industrial countries who consume oil. That means that the oil containers goes one way full and comes back empty. Shipment companies have to cope with these imbalances by looking at the situation as a whole. The solution comes from the fact that they deal with several ports and more than one industry of goods. Adjusting prices is one strategy, making exports from a surplus port less costly than imports to the same port and vice versa. Another is creating collapsible shipping container. This ingenious idea developed by a Dutch shipping container manufacturer, Cargoshell. It is an â€Å"energy-saving solution to empty shipping container. † 2 Its benefits outgrow the financial aspect as â€Å"CO2 emission is reduced drastically as each is made of a composite material that weighs 25% less than standard shipping containers. 2 In the late 1960’s, shipping giant Sealand responded with the introduction of a round the world liner service which was not very successful. The collapsible containers, although as they may seem to solve a lot of this problem, has not yet been introduced commercially and they render some issues with transport and handling aspects. This means that it is inevitable to have some ships leave ports empty and it is just the concern of reducing that number as much as possible that matters.

The Global Consumption Of Oil - 904 Words

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Essay about Dress Codes in School can Decrease Bullying

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The Training Center For Shell - 1283 Words

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Good Hotel Doing Good Doing Well Free Essays

Good Hotel:Doing Good Doing Well Introduction: Joie De Vivre Hotels Company was found in back in 1987 in San Francisco by Chip Conley. Conley started from opening a Phoeonix Hotel in San Franciso. His first priority or targeted customer were of rock bands, musicians and film makers who mostyly travels for their projects and he me travel agents through out the America and proposed some free massage for tour manager during their stay in the hotel to attract the customer and make them stay in his hotel. We will write a custom essay sample on Good Hotel Doing Good Doing Well or any similar topic only for you Order Now And this worked and Conley was successful in making some of nationally known entertainers stay in his hotel. Joie De Vivre is a company which has entire business based in San Francisco and because of which it was negatively impacted by the incident of 9/11 and there was substantial turndown. Joie De Vivre began to expand its network out of San Franciso from 2005 by opening Hotel Angeleno in Los Angeles likewise in 2009 they opened other hotel in different place to spread the market of their company more wider. They opened Shorebreak hotel in Huntington Beach,Hotel Erwin in Venice Beach and Pacific Edge Hotel in Laguna Beach. Strategy Plan Of Joie De Vivre’s ENVIRONMENTAL POLICY The mission of Joie De Vivre Green Dreams is to prevent the environment and educate not only emplyees but also cutomer to reduce waste and toxins,make the environment a eco-friendly environment and always true to reuse,recylce and reduce the waste. Joie De Vivre is also working to get their hotels a green certificate by their local city or country to show their commitment for the environment and Green Dreams. Joie De Vivre uses the following policies and practices for the Green Dreams to come true: Reduce,Reuse and Recycle Purchasing Environmental Friendly Products Conserve Energy,water and natural resources Generate clean energy through on-site solar production Reduce, Reuse and Recycle: Joie de Vivre try to reduce the wastage by reusing and recycying all the papers,cans,bottles and all the waste food and landscape waste. Even when they donates to the charutable organizations they donate those items which can be reused so that they can make other people also play a role in Dream Green project. Toxics Reduction and Environmentally Preferable Purchasing Joie De Vivre always are on the side of not using toxic materials to protect the health of the both employee and guest as well as the environmental health also. They reduce the use of toxic materials as much as they can and they safely recycle the toxic products for reusing it again. They minimize the use of mercury lamps and try not to use them whenever it is possible. They always try to purchase the recycled products. Conserve They conserve the fossil fuels by encouraging the use of public transport rather then private transport to their guest as well as their employee which make thems save fuel. They encourage carpooling among their staff and also by taking part in spare the air campaigns they are conserving the environment. Employee Education They train and educate their staff how to reuse,recyle and reduce the cost. This will not only help in making the Green Dream success but it will alse make their employee in their daily life as well . Not only in work but this will help them in their home to reduce,recycle and reuse the waste which they can. How to cite Good Hotel Doing Good Doing Well, Papers

Technical Management and SLA

Question: Discuss about theTechnical Management and SLA. Answer: Introduction Data is always increasing everyday both in volume and in variety around the globe. It is almost impossible for data describing an entity to be fully housed and controlled by a single data source. Due to this data is combined from various sources and versions of the data by same source for a period of time. During data exchange there is always a risk of data leakage or loss of data confidentiality. These are crucial things that needs to be addressed as the client who own the data being exchanged need to be sure that the network administrator or where the data is stored is safe from expose. The data is at risk from both the cloud host provider and also malicious hackers. The protection mechanisms should ensure data is immune against loss. In the event the immune is compromised the recovery mechanisms need to take charge. A better data backup and disaster recovery mechanism is needed here. During the first presentation it was agreed Intuit QuickBooks and Optus cloud solutions will be adopted. Quick books will be essential in management of payroll and file sharing. It has capacity to conduct 24 hr data protection through automated monitoring as well as server performance monitoring. It captures all user activities at various periods to ensure nothing is unaccounted for. Optus cloud solution was chosen for payroll services due to good security capabilities. It is also less expensive. Remote Administration This mechanism provides tools and interface for external cloud data administrators which allow them configure and offer cloud based IT resources. This mechanism can define access to resource, SLA, billing and administration management features via a portal. Child protection board through remote administration system will be able to have capacity to operate and monitor the service progress. This system architecture of remote administration has an undelaying system that undertake management. The administration controls are centralization and revealed to external cloud resource admin. The external resource administrator is provided with a user console which is interfaced with undelaying management system through APIs (Cioca Ivascu, 2014). The cloud provider uses remote administration tools and API to develop and adapt the online portals to give the cloud consumers a number of administrative controls. Remote system administration creates two portals namely usage and administration portal as well as self-service portal. The latter is a shopping portal to allow the cloud provider clients to search up to date list of available cloud services. The other portal serves as a general purpose portal. Which can be used to configure a leased virtual server which do hosting preparation. This is usual done by a cloud resource admin (CRA). The CRA can then select and request for new cloud service using the self-service portal. This give him/her a chance to access usage and administration portal where he can configure the new cloud service. This service is hosted on a virtual cloud server(Alshammari Bach, 2013). During this process there is remote administration interaction with management system to offer the required actions. The remote administration system offers cloud service set up and configuration, assignment and release of on-demand cloud services IT resources, tracking of cloud service performance, usage and status, management of access through control of authentication and authorization, monitoring of internal and external leased services access as well as capacity planning. Resource Management This helps coordinate the IT resources to respond to actions performed during management of the cloud services which are executed by the client and the service provider. Resource management system has a virtual infrastructure manager that coordinate the virtual server instances with the server hardware components. The virtual infrastructure manager (VIM) coordinates a number of virtualized IT resources among multiple physical servers(IONESCU, 2015). A VIM may have dedicated repositories such VM image repository for operational data storage. Resource management is responsible for management of templates of virtualised IT resource, assignment and release of virtualised IT resources, coordination of IT resources like load balancers, resources replicators and fail-over systems, enforcement of security and usage policies and tracking of IT resource operational conditions. The VIM provides a user interface for cloud resource administrator to perform internal resource management tasks. SLA Management SLA management manages SLA data notification through administration, collection, reporting and storage. It includes a storage repository to extraction of collected SLA data on determined measures and report parameters. A cloud service consumer performs an exchange with the cloud service. Then the SLA intercepts the messages exchanged to use them evaluate interaction as well as perform relevant runtime data. The data is in line to cloud service SLA so as to comply with the quality of service (QOS). This data collected is stored in a storage repository as part of SLA management system. Using the usage and administrator port the cloud resource administrator can now query and generate reports through the user the interface. Figure 3: SLA manager with OOS measurement repository Back up and Disaster Recovery Data exchange and file sharing is a very critical process that needs all tools to be available in case of any eventuality data needs to be recovered fast and ensure no data loss. Information here is the most important factor for child protection board and it must ensure that there is high availability whenever the data is needed. A cloud backup needs to be kept to ensure in the event that the online file is lost the one backup can be used. Backing of the data involves sending a file copy over the network to an off site server for storage. The server here is hosted by the third party usually the cloud provider. A disaster recovery plan needs to set up for anticipation of data loss which will need recovery. Child protection board needs a unique disaster recovery plan as it has its own needs related to childrens data that is similar to no other organization (Singh, Powles, Pasquier, Bacon, 2015). A better recovery plan for them will be based recovery time objectives. Cloud provider reliability and availability is also essential for continued data availability and also for disaster recovery. They are critical in delivering of the service I agreed terms. The recovery options available are managed service provider, backup to cloud and restore to cloud and replication to cloud virtualised machines Managed service provider puts primary production and disaster recovery instances in the cloud which will help the board greatly realise the cloud benefits. This mechanism uses managed applications mechanism which is cloud based hence no on premise infrastructure. Negotiation for appropriate service level agreement which the service provider is very essential as it amounts to giving out control to the service provider. One needs complete assurance on ability to offer un-interfered service within the SLA agreement for disaster recovery instances. A pure cloud play is becoming a popular platform for business application such as email and customer relation management applications. The child protection service can adopt a back-up and restore from cloud. The data and applications which reside on premise is backed up to cloud and restored on premise hardware in the event of failure. The backed up data is the substitute of the tape based off backups Replication to virtual machines in the cloud is another option. Applications may need application awareness, replication and aggressive recovery time and recovery point objectives. Replication protects both cloud and on premise data. It can be done on both cloud VM to cloud VM and still on premises to cloud VM. The products of replication are based on continuous data protection SLA Metrics The quality of service offered by the service provider is defined by the SLA metrics. A quality cloud service may have multiple metrics that form part of the major acceptance criteria. The SLA metric give a guideline to assessment of aspects of the cloud service. Fault tolerance is very critical as the application detects and withstands the failure of some components. This ensured continued service with accurate results for a certain period of time. A reliable application manage failure on its parts and continue working properly. Defect rate metric of the SLA determines the percentage error rate in the major deliverables. This takes into account the number of failures, missed deadlines in a defined period of time usually one month. The child protection board should consider the downtime rate than the service is unavailable and no of times that there file exchange failures (Amato, Liccardo, Rak, Venticinque, 2014). The technical quality of the offered cloud service is of great importance. This includes the bandwidth and speed of connection. The quality of service will help eliminate single points of failure through replication and resilient design. To ensure effective availability each service that depends on another is considered and its effect on the overall system is also considered. This helps in times of disaster management where priority of a resource need to be taken into account System scalability also has a hand in service availability. When the service fails when the load is increased is ceases from being accessible by the consumer. According to SLA scalable application should withstand increased load and show consistency with acceptable results with increase of consumer load. References Alshammari, H. Bach, C. (2013). Administration Security Issues in Cloud Computing.International Journal of Information Technology Convergence and Services,3(4), 1-11. https://dx.doi.org/10.5121/ijitcs.2013.3401 Amato, A., Liccardo, L., Rak, M., Venticinque, S. (2014). SLA-based negotiation and brokering of cloud resources.International Journal of Cloud Computing,3(1), 24. https://dx.doi.org/10.1504/ijcc.2014.058829 Chorafas, D. (2011).Cloud computing strategies. Boca Raton, Fla.: CRC Press. Cioca, L. Ivascu, L. (2014). IT Technology Implications Analysis on the Occupational Risk: Cloud Computing Architecture.Procedia Technology,16, 1548-1559. https://dx.doi.org/10.1016/j.protcy.2014.10.177 Cloud computing: concepts, technology architecture. (2013).Choice Reviews Online,51(05), 51-2714-51-2714. https://dx.doi.org/10.5860/choice.51-2714 IEEE Cloud Computing Special Issue on Cloud Security. (2015).IEEE Cloud Computing,2(5), c2-c2. https://dx.doi.org/10.1109/mcc.2015.88 IONESCU, A. (2015). Resource Management in Mobile Cloud Computing.Informatica Economica,19(1/2015), 55-66. https://dx.doi.org/10.12948/issn14531305/19.1.2015.05 Singh, J., Powles, J., Pasquier, T., Bacon, J. (2015). Data Flow Management and Compliance in Cloud Computing.IEEE Cloud Computing,2(4), 24-32. https://dx.doi.org/10.1109/mcc.2015.69