Qualitative Cost Benefit Analysis

Network security is essential for the health of a successful business. In the case of the CDoR, access controls and network security are serious areas for improvement especially as they implement the tax software upgrade, GENTAX. With hardcopy workpapers and limited access at client sites, sharing information between department partners, employees, and customers is neither secure nor cost effective. (3) Remote access is one method of solving this problem for CDoR.

The essence of implementing remote access is the Virtual Private Network (VPN). A VPN provides secure connections within enterprises and corporate IT resources. The secure connection is established through the public internet which correlates to lower IT costs than dial-up networking. (2) By using a VPN, the CDoR would be able to access GENTAX at an independent client site.

Securing a connection to a network through a VPN is done through a gateway, which is a device that manages the connection. (2) For example, an RSA SecurID is used to log in to protected networks at two top-industry public accounting firms, KPMG and Ernst & Young. The RSA SecurID is a small device that omits an 8-digit login code which changes every 60 seconds. The device is inexpensive to distribute and an effective way to provide remote access into a VPN.

Moreover, the marginal cost of installing a VPN for remote access will prevent massive potential costs from loss of data. With unsecured networks, data integrity is highly vulnerable. A VPN ensures that only authorized users are accessing the system network. Therefore, the cost of installing a VPN for remote access is highly justified.

Installing VPNs has proven to reduce the cost of network services as well. Enterprise class VPN systems cost around $10,000. (2) Considering that a VPN would significantly increase the return on investment for a system like GENTAX, this cost is extremely worthwhile and beneficial compared to the $20M plus the CDoR is spending on GENTAX. Also, by charging flat monthly rates for many users on communication lines (1) VPNs can decrease costs by $5500 in the case of tech company Reliant. (1)

Time is also a critical factor in creating remote access. In contrast to rewiring network circuits to privatize a network, a company can install a VPN quickly and provide fast access to protected online resources. (1)

Along with the benefit of providing network security through public internet sources, VPNs allow businesses to access company resources away from the office or client site. Any public internet source is capable of a VPN connection which creates more opportunities to continue business operations. (2) With more opportunities to work, CDoR will become a better business unit and increase audit turnovers, thus generating more revenue.

1 - http://www.vpntools.com/vpntools_articles/vpn-costs.htm

2 - http://www.itsecurity.com/features/vpn-essential-guide-042108

3 - http://www.osra.org/2003/thomas.pdf