Investigating preconditions for a financially advantageous cloud usage

Autor(en): Jede, Andreas
Teuteberg, Frank 
Stichwörter: ADOPTION; Business & Economics; Case study research; Cash flow comparison; Cloud computing; Financial decision model; FRAMEWORK; INVESTMENT; Management; MODELS; SERVICE; Simulation analysis; SYSTEMS; VIEW
Erscheinungsdatum: 2016
Herausgeber: EMERALD GROUP PUBLISHING LTD
Journal: INTERNATIONAL JOURNAL OF ACCOUNTING AND INFORMATION MANAGEMENT
Volumen: 24
Ausgabe: 2
Startseite: 116
Seitenende: 134
Zusammenfassung: 
Purpose - Information technology (IT) expenses constitute an important factor when choosing efficient IT systems. Especially with regard to cloud computing (CC), decision-makers tend to associate cost benefits. In this context, cloud providers present often undifferentiated sample calculations which aim to verify the financial favorability of their IT solutions. However, the scientific literature tries to encounter this by means of various total costs of ownership approaches. But science mostly neglects essential factors and does not provide an integrated approach involving factors, such as cost of capital, taxation effects, use intensity or duration of use. Hence, the purpose of this study is to involve these factors accordingly. Design/methodology/approach - The paper uses a multi-method approach. First, existing literature is analyzed by a systematic literature review. Afterwards, the initial model is developed by means of a formal notation. Finally, the suitability of the formal model is evaluated by a real-life case study, where simulation software is used for investigating various scenarios. Findings - The underlying paper discusses a formal model which integrates the four stated factors and enables decision-makers to compare cloud-based IT services on a comprehensive financial basis. Thus, the rational cost comparisons with traditional IT systems such as on-premise (OP) increase the transparency of the CC field significantly. Originality/value - This paper shows impressively the importance of the four mentioned factors and their influence on the decision whether to implement cloud services or OP services. Herein, to the best of our knowledge and for the first time, a cash-flow-based comparison model is created for comparing cloud services and OP solutions.
ISSN: 18347649
DOI: 10.1108/IJAIM-04-2015-0018

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