Cloud Computing Suitability

Mathematical and Computer Modelling 53 (2011) 504–521

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Identification of a company’s suitability for the adoption of cloud computing and modelling its corresponding Return on Investment
Subhas Chandra Misra ∗ , Arka Mondal 1
Department of Industrial and Management Engineering, Indian Institute of Technology, Kanpur, India

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abstract
Internet has become pervasive in our daily life and cloud computing is the newest offering as service over the ubiquitous Web. Cloud computing has been considered as a much hyped phenomenon in the IT and business world promising to deliver a host of benefits. Companies need to look beyond this hype and seriously consider the real value of incorporating the Cloud in their own businesses. This paper is aimed at helping companies analyze several characteristics of their own business as well as pre-existing IT resources to identify their favorability in the migration to the Cloud Architecture. A general Return on Investment (ROI) model has also been developed here taking into consideration various intangible impacts of Cloud Computing, apart from the cost. The analysis presented herein provides a much broader perspective and insight into Cloud Computing to its prospective adopters. © 2010 Elsevier Ltd. All rights reserved.

Article history: Received 1 November 2009 Received in revised form 15 March 2010 Accepted 16 March 2010 Keywords: Cloud computing Return on Investment (ROI) Benefits of cloud computing Cost of cloud computing

1. Introduction Cloud computing (CC) [1] is a paradigm shift in computing with the potential of changing the whole perspective with which we look at computing today. Currently, desktops, laptops and numerous such devices have penetrated into our daily lives and have become indispensable [2]. It will not be too long from now that all we will need to know is

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