Volume 5, Issue 8, August – 2020 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Strategic Cloud Computing Framework:

A Case Study of South African IT Professionals
Andrian Wilby Twala Ray M Kekwaletswe
Graduate School of Business Leadership Graduate School of Business Leadership
University of South Africa University of South Africa
Midrand, South Africa Midrand, South Africa

Abstract:- In a challenging business environment, should cloud computing be strategically adopted and use in
organizations are striving to stay competitive. Cloud the context of South African organizations. This paper
computing is changing the way IT services is being developed a framework known as strategic cloud computing
provided and managed. Cloud computing is becoming framework. In this study strategic cloud computing
more relevant in that the benefits of cloud computing inferences to the organizational strategy in that cloud
include reducing infrastructure and maintenance costs, computing adoption and use is in line with the strategic
increasing operational efficiencies, availability and goals of an organization.
flexibility. However, like any other technology, both
strategically and operationally, the organizations are A. Cloud computing attraction
not very confident in adoption and using it. Therefore, Cloud computing brings a paradigm shift in how we
in an attempt to help South African organizations to view capital and operational costs in IT. Cloud computing
leverage off the benefits of cloud computing. This paper promises numerous benefits such as reducing infrastructure
focuses on how cloud computing may be strategically and maintenance costs, increasing operational efficiencies,
adopted and use in South Africa from the context of improving availability and flexibility of resources [2].
individual Information Technology Professionals. To Organizations are considering cloud computing as an
achieve these South African organizations require a alternative technology that will be used as a cost-effective
means to adopt and use cloud computing. To this point, strategy for managing IT costs.
the contribution of this paper is a framework, based on
Contingency Theory, Stakeholder Theory and Varia[2] position cloud computing as a solution that
Technology-Organization-Environment Framework offers benefits such as the fast provision of hardware, pay as
(TOE), that South African organization can use to you use model, shared resources and visualization. Authors
strategically position cloud computing as preferred Marston, Li, Bandyopadhyay, Zhang and Ghalsasi[3]
technology in a uniformed and coordinated manner. concurs that cloud computing is appealing because it offers
This study applies interpretivism philosophy and case cost-saving, the flexibility of resources and pay as you use
study to understand the cloud computing adoption and of resources.
use in South African organizations. The study
participants were purposefully selected based on their B. Cloud computing trends
knowledge, experience and views on cloud computing. Cisco[4] report reveals an increase in the use of cloud
The main contribution of this paper is the strategic computing data centres. The report reveals that interest in
cloud computing framework that can be used by cloud computing has grown significantly. Gartner estimated
decision-makers to strategically adopt and use cloud spend on cloud computing in the next five years to reach $1
computing in a uniformed and coordinated manner in trillion[5]. It is stated by Gartner forecasts that the IT spends
South African organizations. in South Africa, estimate that by 2019 more than R303
billion will have been spent on cloud computing[6].
Keywords:- Cloud Computing, St ak e hol de r,
Contingency, TOE Framework, South Africa, IT C. Cloud strategic alignment
Professionals. As more organizations begin to moving to cloud
computing. There is a need to strategically position cloud
I. INTRODUCTION computing in an organization. In this study, we would
propose a framework that can be used by South African
Information technology (IT) has been used for a long organizations to strategically position cloud computing as a
time in support activities in organizations. Due to the current preferred technology. The framework is based on
economic conditions in South Africa, organizations are stakeholder theory, contingency theory and technology-
looking into alternative technology such as cloud computing organization-environment framework.
as a way of saving on IT resources, free up existing
resources and maintenance costs. This paper consists of eight sections. In section two
cloud computing will be defined and discussed. Section
Cloud computing is defined as the internet-based three will discuss the theoretical framework. Section four
computing in which users can share IT resources in a secure explains the conceptual research framework. Section five
and efficient system [1]. This research paper is about how would discuss the research methodology. Section six would

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ISSN No:-2456-2165
discuss the study findings. Section seven explains the final (NIST) which defined cloud computing as “a model for
research framework. The last section gives a study enabling convenient, on-demand network access to a shared
conclusion. pool of configurable computing resources(as an example,
networks, servers, storage, applications, and services) that
II. SURVEY OF SCHOLARSHIP can be rapidly provisioned and released with minimal
management effort or service provider interaction” [8].
This section provides an overview of the literature
review conducted as part of this study. The next subsection As shown in Figure 1, cloud computing is composed of
discusses the definitions of cloud computing. five essential characteristics namely broad network access,
rapid elasticity, measured service, on-demand self-service
A. Understanding Cloud Computing and resource pooling. Three service models namely
This section introduces cloud computing and the Software as a Service (SaaS), Platform as a Service(PaaS)
benefits of cloud computing. Cloud computing is considered and Infrastructure as a Service(IaaS) [9]. Cloud computing
as a paradigm shift in the way IT resources are being paid consists of four deployment models, such as public cloud,
for and delivered[7]. The most commonly cited definition is private cloud, hybrid cloud and community cloud [3].
by the National Institute of Standard and Technology

Fig 1:- NIST model of cloud computing[8]

The organization considers various business and Furthermore, the environment in which an
technical factors before the adoption and use of cloud organization operates is important in the decision-making
computing. Cloud computing offers various benefits such as process. Jain and Pandey[11] in their study draw attention to
cost-saving, improved operational efficiencies, immediate the cloud computing environment. The study highlighted the
access to IT resources, business agility and scalability, potential risks and potential benefits of adoption and use of
accessibility of resources from anywhere at any time[2]. cloud computing. The study found that the benefits of cloud
computing offset the risks.
Despite the numerous advantages of cloud computing,
there are hindering factors that need to be addressed by In their study Kumar et al[12], they identified
organizations, such as security, costs, regulations, contract business-related issues with regards to cloud computing.
lock-in, data privacy, compliance challenges and cloud These included the policies, cloud computing strategy and
service failure which might prevent management of technology implementation. Pardeshi[13] highlighted the
organization from adopting and using cloud computing. need to have a strategy for cloud computing. The strategy
will provide an alternative solution to the financial crisis of
B. Contingencies for cloud computing an organization.
At the organizational level, the decision to adoption
and use cloud computing is centered on the contingencies Cloud computing is a new business environment. A
such as organization strategy, structure and size, and study by Kaisler, Money and Cohen[14] came up with a
external environment such as various regulations. decision framework that was meant to assist the decision-
makers when considering to adopt and use the cloud
In research conducted by Blanton, Watson and computing and to determine which cloud computing
Moody[10], the authors used the constructs of contingency solution meets their organization cloud computing
theory such as external environment, strategy and structure requirements.
to understand how an organization would require its
structure to create strategies to improve their stance in the Therefore, this study utilized the elements of
market. contingency theory to conceptualize the study’s framework.

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C. Stakeholders for cloud computing D. Factors of cloud computing
Stakeholders influence cloud computing adoption and This section discusses the factors that are important in
use. Therefore, understanding the roles and goals of cloud computing adoption and use There have been several
stakeholders in the adoption and use of cloud computing is studies related to factors of cloud computing. Most of these
very crucial for the organizations. studies have used the TOE framework to list and discuss
factors.
As discussed by Yuvaraj[15], cloud computing can
bring value to different stakeholders. The study concluded A study by Priyadarshinee[17] used the TOE
that the main reason for cloud adoption is the benefits such framework to predict that factors of cloud computing in
as improved services, availability of services, ease of use Indian organizations. The study found factors such as
and costs reduction. security risks, trust, technology innovation and management
style have a significant influence on the adoption of cloud
In the cloud computing context, the relationships computing.
between stakeholders are slightly changing. The NIST
presented a reference architecture of cloud computing Another study by Senyo, Effah and Addae[18] was
clearly defines a group of actors. The main stakeholders are conducted to determine cloud computing factors using the
the cloud provider, who supply the cloud services to TOE as a research lenses. The study found that,
interested parties. The cloud consumer is the stakeholder technological factors such as relative advantage and security
that subscribe or use cloud services. The cloud brokers or as the most significant. Organizational factors such as top
enablers who facilitates the delivery of cloud services management and technology readiness. The environmental
between provider and customer. The cloud auditors conduct factors such as competitive pressure and trade partners were
an independent assessment of cloud services. found to be significant.

The study by Haung[16] explored the implementation Table 1 below shows previous studies on factors of IT
of IT resources from stakeholder’s perspective. The study adoption and usage using the TOE framework. The most
found that the implementation project can succeed when prominent factors were relative advantage, complexity,
stakeholder interests are considered and coordinated by top compatibility and security in a technological context. Top
management. The study concluded that stakeholders have an management support, cost-saving, technology competence
influence when planning for a cloud computing project. were most important in an organizational context.
Government regulation and competitor pressure were most
Therefore, this study utilized the elements of important in the environmental context.
stakeholder theory to conceptualize the study’s framework.

Category Factors
Relative advantage [19],[20],[21]
Complexity [19],[20],[22], [23]
Technology
Compatibility[19],[20],[22]
Security [19],[22], [24], [25]
Top management support[19],[20], [21],[26]
Organization Cost-saving [27], [28], [2]
Technology competence[23], [29]
Government regulation [24],[28]
Environment
Competition pressure[30],[31]
Table 1:- Previous studies using TOE framework

Therefore, this study utilized the elements of TOE framework to conceptualize the study’s framework.

III. THEORETICAL FRAMEWORK A. Contingency Theory

The basis of contingency theory is that there is no best
This study is underpinned by the Contingency Theory, way of organizing and managing an organization. According
Stakeholder Theory and Technology-Organization- to Donaldson[32], contingency theory is defined as a
Environment (TOE) framework. The three theories are variable that moderates the aspects of organizational
explained briefly. characteristics on organizational performance.

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As shown in Figure 2, the contingency theory has The stakeholder theory is relevant for this paper as it
components such as organizational structure, organizational identifies the key stakeholders when deciding on the cloud
strategy and organization performance[33]. computing adoption and use.

Fig 2:- Contingency Theory[10] Fig 3:- Stakeholder Theory[34]

The elements of contingency theory are briefly C. Technology-Organization-Environment

explained: The TOE framework, as depicted in figure 4, below
 Organizational structure refers to that, there is “no one was developed by Tornatzky et al, [35] in 1990. The
best way” meaning that no single structure is optimal for framework examines the process of how an organization
all the organization goes about adopting and implementing technological
 Organizational strategy refers to the core of the innovations. The adoption and implementation process is
organization. The long-term direction of an organization. believed to be largely influenced by three contexts namely
 Organizational Environmental influences refer to the technological factors, organizational factors and
external pressures or government regulations that the environmental factors
organization need to conform to.
 Organizational performance refers to defined past,
present and future accomplishment on the given task
against pre-set standards of accuracy and completeness.

The contingency theory is relevant for this paper as it

gives the contingency variables for cloud computing
adoption and use.

B. Stakeholder Theory
The stakeholder theory was introduced by
Freeman[34] in the year 1984. The stakeholder theory is
used to understand the relationship between management
and stakeholders. Stakeholders are defined as “any group or
individual that can affect or is affected by the achievements
of the organization’s objectives.
Fig 4:- Technology, Organization, Environment[35]
The stakeholder theory describes the value that is
being created when stakeholders are working together. The
The components of the TOE are briefly discussed as
theory originally presented the stakeholder model as a map
follows:
in which an organization is the hub of a wheel and
 Technology factors refer to the existing and new
stakeholders are at the end of spokes around the rim. The
technology that is owned by the organization
stakeholder map is depicted in figure 3, below.
 Organization factors refer to the organizational
characteristics such as organization size, organization
Stakeholders can influence organizations in several
structure and top management support of the
ways, the importance of stakeholders depends on the
organization
organization’s management perceptions and the stakeholder
 Environment factors refer to external factors that may
influence will be more or less proactive or reactive.
influence the adoption of technology such as the
regulatory environment, competitive pressure and
industry pressure in which the organization

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The TOE is relevant for this paper as the decision to
adopt and implement cloud computing is influenced by Figure 5 graphically presents the conceptual research
technology, organization and environment factors framework that guided this study and enables the research
questions to be answered. The framework consists of five
IV. CONCEPTUAL RESEARCH FRAMEWORK elements of contingencies elements, technological elements,
organizational elements stakeholder elements and
This section sets out the proposed the research environmental elements. The elements will be briefly
conceptual framework. The framework is underpinned by discussed.
the Contingency Theory, Stakeholder Theory and
Technology-Organization-Environment Framework (TOE).

Fig 5:- Initial Conceptual Research Framework (Researcher)

The table 2 below outlines the elements of the conceptual research framework:

Framework/Theory/Model Description
Stakeholder theory Stakeholder:
 Employees
 Third parties
 Customers
Contingency Theory Contingency variables:
 Organisation strategy
 External environment factors
 Characteristics of an organisation such as structure and size

Technology-organization-environment Technology context:

framework  “Ease of use” of cloud computing
 Characteristics of cloud computing with regards to the complexity
 Characteristics of cloud computing with regards to compatibility
Organisation context:
 Role of top management support
 Cloud computing policies and procedures
Environment context:
 An external environment such as government regulations
 Competition within the industry
Table 2:- Elements of a conceptual research framework

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V. METHODOLOGY D. Research Design
This section describes how the study was conducted.
Collis and Hussey[36] defined methodology as the According to Mouton[44], a research design is a plan or
“overall approach to the entire process of the research blueprint of how you intend conducting the research. The
study”. The research methodology needs to tie to the study section outlines the unit of analysis, study population,
ontology and epistemology in that “given the nature of sampling technique and size.
cloud computing South African reality and to show how the
generate new knowledge that is consistent with the  Unit of Analysis
epistemology and ontology[37]. The unit of analysis describes the level at which the
research is performed. Babbie[45] defines the “unit of
A. Research Philosophy analysis” as the “what” or “who,” being studied. The paper
According to Lincoln and Guba[38], research analysis individual IT professionals in South Africa. That is,
philosophy refers to the set of beliefs that guide the the unit of analysis is the individuals.
researcher’s assumption. The study followed an
interpretivism philosophy to study cloud computing  Study Population
adoption and use. According to Creswell[39], an A study population is an aggregation of individuals,
interpretative philosophy uses the participants' views of the events and other interesting elements[46]. It is from a
situation being examined. population where a sample is selected. The study population
influences the sampling process[47].
The study used the interpretivism to solicit IT
professional’s views, opinions, perceptions and experiences The population was limited to the individuals who are
with regards to cloud computing adoption and use. The working in the IT sector in South Africa.
interpretivism paradigm gave an alternative way of
understanding cloud computing adoption and use from the  Sampling Method
individual’s point of view. According to Bryman and Bell[42] sampling technique
is how sample size is selected from the study population. A
B. Research Approach sampling method can be classified as probability and non-
There are two types of research approaches; namely, probability.
qualitative and quantitative. This study followed a
qualitative research approach. According to Creswell[39], This study used the purposive sampling technique to
qualitative researchers use a language of cases and contexts, select the participants who are knowledgeable with cloud
to understand the concept of the phenomenon. A qualitative computing to provide the information required by the
approach is defined as the analysis of data such as interview guide. According to Creswell[39], purposive
information from the proceedings of the interview[40]. sampling focuses on a particular characteristic of a
population that of interest. The participants of the study
This study used the qualitative research approach to were chosen base on their experiences and perceptions on
gather the empirical data from individual IT professionals cloud computing adoption and use from their own
with views, experiences and knowledge of cloud computing perspectives.
especially with regards to the South African organization
context.  Study Participants
The participants of this study included individuals IT
C. Research Strategy professionals who have knowledge, experiences and views
Saunders et al [41]defined research strategy as “the about cloud computing. The exact number of participants
general plan of how the researcher will go about answering cannot be determined in qualitative research before the
the research questions”. Another definition by Bryman and study is carried out. The researcher has specially selected
Bell[42] defined a research strategy as “a general orientation participants who can contribute to the research subject and
to the conduct of research”. who are willing to share their experiences.

The study adopted a case study as a research strategy. E. Data Collection methods
Creswell[39] defines a case study as the study of an issue Kothari[48] described data collection as a systematic
explored through one or more cases within a bounded gathering of information that addresses the research problem
system. Yin[43], defines case study research as a practical using various techniques. The primary data was collected
review that probes a current event within a day-to-day through interviews. Data collection associated with
environment when the limitations between the event and qualitative research will be unstructured using open-ended,
environment are not well defined. A case study based on a semi-structured and unstructured interviews.
purposive sampling technique was utilized to gather
empirical data through individual participants views, Therefore, an interview guide was developed in order
opinions and experience about cloud computing. The to address the research objectives. The study collected
participants were chosen to give an alternative way of primary data through semi-structured interviews with
understanding cloud computing adoption and use from the individuals from IT professionals such as managers,
individual’s point of view. professionals, experts and consultants.

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The semi-structured interviews were carried out at the themes were developed based on the study research
place agreed with participants. According to Baker and objectives. Tracy [51]states that once the data is gathered
Edwards[49], a sample of 12 and 60 are the guideline for a the researcher will categorize the data according to the
qualitative study. This was well within a minimum themes identified. Creswell[39] suggest that data analysis in
saturation point to draw inferences. qualitative research consists of preparing and organizing the
data for analysis, reducing the data into themes through a
F. Data Analysis process of coding and condensing codes.
Yin [43] recommends that for optimal benefit from
data analysis, the researcher methodically arranges and sets The theoretical thematic analysis helps the researcher
up the data to be analyzed. The face to face interviews was to interpret the research data based on research questions
electronically recorded and then transcribed for data analysis through which the theoretical lens affects these research
purposes. questions.

The data analysis was qualitative in nature. An Table 3 below summarizes the research philosophy,
appropriate qualitative analysis method such thematic research approach, research strategy, research design, data
analysis was used to analyze and interpret data [50]. The collection methods and data analysis.

Details Description
Research Paradigm Interpretivism paradigm
Research Approach Qualitative research approach
Research Strategy Case Study
Research Design
Unit of analysis The unit of analysis is the individuals
Study population Individual IT professionals
Sampling technique The purposive sampling
Semi-structured interviews were used to collect primary data to give an in-
Data collection methods
depth analysis
Data analysis A thematic analysis was used to analyse the data.
Table 3:- Research Methodology

VI. DISCUSSION OF FINDINGS with the study by Scholtz, Govender & Gomez[24], where
the study found factors such as regulation requirements,
The goal of this study was to determine how cloud availability and data privacy as important factors when
computing could be strategically adopted and used in the moving to the cloud computing.
South African organization's context. Semi-structured
interviews were conducted using a purposive sampling Cloud computing is seen as an idea that would bring
technique. Four themes were identified to answer the down the costs of hardware, by providing immediate access
research questions namely understanding cloud computing, to hardware resources, without capital investments [53]. The
contingencies of cloud computing, stakeholders and factors public cloud is the most popular choice of cloud deployment
of cloud computing. and the software as a service is the main concept behind
cloud computing regardless of deployment model.
A. Theme1: Understanding cloud computing
The purpose of theme one was to understand cloud The findings concur with the findings of a study by
computing through the eyes of IT professionals. Cloud Erdogmus[54], where the study found that Software as a
computing refers to a model that allows cloud users to log service is considered to be the main concept behind cloud
into computer resources such as servers, network and data computing regardless of deployment model.
storage capacities via the internet [1].
B. Theme 2: Contingencies for cloud computing
The findings indicated that the participant has a good The purpose of theme two was to analyze the practical
knowledge of cloud computing. The understanding of cloud and theoretical contingencies for cloud computing. The
computing is consistent with the literature[1],[8],[52]. paper analyzed contingencies such as organizational
Moving to the cloud should be a planned decision. The strategy, organizational structure and external environment.
requirements include the regulation requirements, choosing
the right type of cloud service model, staff competencies, The organizational strategy was seen as important
and top management support. Participants managed to list elements when adopting and using cloud computing. The
all the requirements to be taken into account before moving strategy aligned the technology towards organizational
to the cloud computing environment. The findings concur goals. The findings were in line with a study by Mital,

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Pearce and Robinson [55] where the authors defined the computing factors. The TOE framework was put forward by
organizational strategy as a plan for interacting with the DePietro[58].
environment to achieve the organizational goals.
The following factors enable the cloud computing
In the environmental context, the factors such as adoption and use were identified such as relative advantage,
competition pressure, government policy, power outages top management support, organization size, compatibility
and network bandwidth costs seem to influence the adoption and complexity.
and use of cloud computing. The business environment in
South Africa is not the same as developed countries with The relative advantage of cloud computing technology
regards to politics and culture. The infrastructure is unique emerged to be the reason why organizations are adopting
to the South African environment, competition pressure and using cloud computing technology such to reduce the
plays a significant role in the adoption and use of cloud cost of IT, ease of use, reliability, improved IT services. The
computing. Other factors that influence the adoption of findings concur with the literature that relative advantage
cloud computing are the stable power availability and the influences usage and adoption of cloud computing [18],[22]
costs of connectivity such as broadband and bandwidth costs
seem to be restricting the update of cloud computing by The top management support will influence the
organizations in South Africa. adoption and use of cloud computing in an organization.
The findings concur with the study of Talmizie, Ibrahim, &
According to Borgman et al[56], the size of an Chuprat[26]on assessing the support of top management in
organization can be a challenge the could facilitate the the adoption and use of cloud computing
adoption and use of cloud computing. This construct gave a
mixed-view as to whether the structure and size of an The large organizations it is very difficult to adopt to
organization might influence the adoption and use of cloud the new system such as cloud computing and abandon their
computing. The empirical evidence shows that small and current systems. The cloud computing benefits such as cost-
medium-sized organization tend to be more creative and saving, operational efficiencies, immediate access to IT
innovative when adopting and using cloud computing. resources, accessible from anywhere at any time[2], are the
reasons for organizations switch from their in-house system
C. Theme 3: Stakeholders for cloud computing to a cloud-based system.
The purpose of theme three was to identify the
stakeholders for cloud computing. The findings from the Complexity is the degree to which an innovation is
interviews showed that there was a general consensus on perceived as relatively difficult to understand and use.
stakeholder involvement. Complexity influences the adoption and use of cloud
computing[22],[20].
The participant highlighted the importance of
stakeholder management when deciding on adoption and Compatibility refers to the degree to which cloud
use of cloud computing within an organization. Thus, the computing is perceived as consistent with the current
relevant stakeholder should be identified and involved situation in organizations is exhibited. Technical
earlier in the adoption and use of cloud computing. compatibility influences the adoption and use of cloud
computing [22],[20].
The findings of the study concur with the literature. A
study by Hambrick and Cannella[57] stressed the VII. STRATEGIC CLOUD COMPUTING
importance of involving people early on in development and FRAMEWORK
debate of strategic options.
This section outlines the proposed strategic cloud
The findings further show that the role of stakeholders computing framework. The framework was developed by
in organization decision-making is gaining more and more triangulating from the literature review and the research
attention. findings. The new elements from empirical findings were
incorporated into the framework.
D. Theme 4:Factors of cloud computing
The main objective of theme four was to examine the Figure 6 below, depicts the strategic cloud computing
factors of cloud computing adoption and use. Most of the framework. The elements from strategic cloud computing
studies used the TOE framework to identify cloud are described in table 4:

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Fig 6:- Strategic cloud computing framework (Researcher)

Table 4 below contextualise the elements of the strategic cloud computing framework:

Framework/Theory/Model Description
Strategic perspective  The strategic intent of moving to cloud computing was defined
 Identify which workloads to move to the cloud
 Determine stakeholders, management and employees who will be involved in
assessing cloud.
 Determine the deployment models and the services from the cloud.

Stakeholder theory Stakeholder:

 Employees
 Third parties
 Customers
Contingency Theory Contingency variables:
 Organisation strategy
 External environment factors
 Characteristics of an organisation such as structure and size

Technology-organization-environment Technology context:

framework  “Ease of use” of cloud computing
 Characteristics of cloud computing with regards to the complexity
 Characteristics of cloud computing with regards to compatibility
Organisation context:
 Role of top management support
 Cloud computing policies and procedures
Environment context:
 An external environment such as government regulations and Competition
within the industry

Table 4:- Elements of the strategic cloud computing framework

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