Cloud computing is emerging as a powerful computing paradigm with its aim of efficient resource utilization and contribution to Green IT. However, the decision of shifting to cloud computing always remains risky from customer's perspective considering the benefits they would attain by doing so. The extant research on cloud computing focuses more on technical aspects like security, quality, efficiency etc. However, the research on adoption of cloud computing is at its infancy stage. Therefore, this paper attempts to come up with a model to analyze the cost benefits to decide upon the adoptability of cloud computing. It takes into consideration various parameters of an organization such as number of servers, power requirements and other computational/non-computational resources. This model uses a three layer approach for the cost-benefit analysis and draws insights on profitability when an organization shifts to cloud computing in each layer. The three layers are base cost estimation, data pattern based cost estimation and project specific cost estimation. These layers are designed to provide different levels of decision making to aid managers in their attempt to find out the prospects of adopting cloud computing in their organization. The data for cost benefit analysis was collected from organizations that comprised of both small scale and large scale datacenters. It was found that cloud computing is profitable for start-ups and small firms (small scale datacenters) when compared to well-established firms.
Nanath, Krishnadas and Pillai, Radhakrishna
"A Model for Cost-Benefit Analysis of Cloud Computing,"
Journal of International Technology and Information Management: Vol. 22
, Article 6.
Available at: http://scholarworks.lib.csusb.edu/jitim/vol22/iss3/6