A Decision Framework for Cloud Computing

Cloud computing technology is garnering success and wisdom-like stories of savings, ease of use, and increased flexibility in controlling how resources are used at any given time to deliver computing capability. This paper develops a preliminary decision framework to assist managers who are determining which cloud solution matches their specific requirements and evaluating the numerous commercial claims (in many cases unsubstantiated) of a cloud´s value. This decision framework and research helps managers allocate investments and assess cloud alternatives that now compete with in-house data centers that previously stored, accessed, and processed data or with another company´s (outsourced) data center resources. The hypothetically newly captured corporate value (from cloud) is that resources are no longer idle most of the time, and are now much more fully utilized (with lower unit costs). This reduces high ownership and support costs, improves capital leverage, and delivers increased flexibility in the use of resources.