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The Impact of Cloud Computing on Organizations in Regard to Cost and Security
Umeå University, Faculty of Social Sciences, Department of Informatics.
Umeå University, Faculty of Social Sciences, Department of Informatics.
2012 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Throughout the recent years cloud computing has gained large popularity in the information technology domain. Despite its popularity, there are many organizations that are lacking broader understanding of implementing and utilizing cloud computing for business and operating purpose due to the existing vagueness regarding its cost and security effect associated. It is argued that the main attractiveness of cloud computing for organizations is its cost effectiveness, whilst the major concern relates to the risks for security. Accordingly, more effort has been made in exploring these issues of cloud computing impact. However, little effort has been focused at critically examining the cost risks and security benefits which cloud computing bring to organizations. By using a qualitative method this research examines in detail the essential benefits and risks of cloud computing utilization for organizations in terms of cost and security. Unlike prior studies, it also explores the cost risks and security benefits and shows that they should be taken into consideration by organizations. The findings are based on empirical data collected via interviews with IT professionals. The main cost risk identified is the lack of accurate and sophisticated cost models on the current cloud market. Among the identified security benefits are increased data safety, faster data recovery and transfer, centralization, and improved security software mechanisms and maintenance. Moreover, this research shows several major implications that organizations should keep in mind while utilizing cloud computing and provides some suggestions on how to avoid the cost and security risks identified. At present, reduction of the operational and administrative costs is seen by organizations as the most essential cost benefit. The results show that cloud computing is better for small- and medium-sized organizations and that the hybrid cloud is the most appropriate model for them. Furthermore, the cost and security risks of cloud computing cannot be avoided without resolution of the problem with the lack of accurate cost models, international regulatory frameworks and interoperable security standards on supranational levels. 

Place, publisher, year, edition, pages
2012. , 28 p.
Informatik Student Paper Master (INFSPM), 2014.22
Keyword [en]
Cloud Computing
National Category
Information Systems, Social aspects
URN: urn:nbn:se:umu:diva-90605OAI: diva2:728880
Educational program
Master's Programme in IT Management
Available from: 2014-07-02 Created: 2014-06-25 Last updated: 2014-07-02Bibliographically approved

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