Migration to cloud as real option: investment decision under uncertainty

Chew-Yean Yam, Adrian Baldwin, Christos Ioannidis, Simon Shiu

Research output: Preprint or Working paperTechnical report


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.
Original languageEnglish
Number of pages10
Publication statusPublished - 6 Oct 2011

Publication series


Bibliographical note

ID number: Technical Report 186


  • cloud computing migration
  • real option
  • investment under uncertainty
  • security decision making


Dive into the research topics of 'Migration to cloud as real option: investment decision under uncertainty'. Together they form a unique fingerprint.

Cite this