TY - UNPB
T1 - Migration to cloud as real option
T2 - investment decision under uncertainty
AU - Yam, Chew-Yean
AU - Baldwin, Adrian
AU - Ioannidis, Christos
AU - Shiu, Simon
N1 - ID number: Technical Report 186
PY - 2011/10/6
Y1 - 2011/10/6
N2 - If cloud is so good then why aren't companies using it more? In this paper we look at how companies should make a decision to move some IT services or their IT infrastructure into the cloud. The move may initially look attractive in that it offers cost benefits but there is also considerable uncertainty; not least around security and information stewardship. Within the paper we propose the use of a real option model to help think about when to switch to cloud based on the expected benefits, uncertainties and the value a company puts on money.
AB - If cloud is so good then why aren't companies using it more? In this paper we look at how companies should make a decision to move some IT services or their IT infrastructure into the cloud. The move may initially look attractive in that it offers cost benefits but there is also considerable uncertainty; not least around security and information stewardship. Within the paper we propose the use of a real option model to help think about when to switch to cloud based on the expected benefits, uncertainties and the value a company puts on money.
KW - cloud computing migration
KW - real option
KW - investment under uncertainty
KW - security decision making
UR - http://www.hpl.hp.com/techreports/2011/HPL-2011-186.html
M3 - Technical report
BT - Migration to cloud as real option
ER -