Abstract

The growth of cloud computing has been increasing fast since a few years ago, although it is still a small part of overall Information Technology (IT) spending of organizations. Both private and public sectors are embracing cloud computing as it offers an innovative computing model, simplifying IT resource management, offering cost savings and flexible scaling. The question is no longer whether to adopt cloud computing or not, but what should be adopted and how? The transaction cost economy theory offers a rationale for the adoption and the decision-making theory helps construct stages for the adoption and operate cloud computing to provide effective and optimal IT solutions for organizations. This paper offers decision makers to overview cloud computing, especially in utilizing values offered and selecting resources or operations that can be migrated to the cloud.

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