Analysis of Costs and Benefits of Cloud Computing

Abstract

This article incorporating a theoretical and practical approach to cost-benefit analysis to help the managerial level of a company that is in front of a decision if or not to adopt Cloud Computing to the bussiness. Cost-benefit analysis is divided into six distinct sections to determine what costs and benefits are economically significant for the case study analyzed. Based on the above allocation sections TEI (Total Economic Impact) is applied, implemented by Forrester as a methodology. This methodology was chosen because it gives a general view of the impact and benefits in information technology to cloud computing adoption not only through the analysis of costs and benefits but also giving appropriate weight to information technology resources that are possessed. The article deals with analysis, forecasts and implementation of Cloud Computing. Showing financial benefits acquired from "green IT" as a consequence from this technology. Through a detailed analysis of the cloud computing phenomenon and its connection with green IT, this article conducts a cost-benefit analysis as a case study taking a internet and comunications services company, such as Primo Communications sh.p.k. The aim of the project is to show the potential benefits of the transition to cloud computing of this company, benefits expressed in increased efficiency of the use of technological resources or even increased environmental benefits. Together "cloud computing" and "green IT" treatment in this article represent two of the most challenging opportunities in business development nowadays.

DOI: 10.5901/ajis.2014.v3n3p259