Cloud Computing Economics For Information Technology industry

Cloud Computing, a new prototype of computing infrastructure provision, gives an assurance of fulfilling a dream of optimal utilization of computer utilities for an economical and smooth functioning of businesses. In Cloud Computing, the economic aspect along with cloud offerings is a research topic in itself. This research presents an overview of the economic aspects involved. Cloud architecture brings with it an assurance of a low-cost delivery, speedy implementation, enhanced flexibility and thus has been adopted widely in a very short period of time. Statistics show that there is a possibility of the cloud services market reaching a level of 160 billion dollars by the year 2020. Although cloud computing technology is being widely accepted, the research is still in the beginning stage. This research attempts to bring out the viability of adoption of this technology based on suitability index and uses further, parameters like number of servers, geographical coverage, extent of data to be migrated, size of operations of the companies and the various financial parameters like ROI (Return on Investment), Payback period, NPV (Net Present Value). However there is more in-depth research that requires to go into the details of company business and gaining further insight into cloud adoption. Here, the study encompasses 35 companies with a view to provide different available variations in terms of all the above mentioned parameters in an attempt to aid the decision making regarding adoption of cloud architecture. The research highlights the reasons for the adoption of cloud architecture by different companies from the chosen 35 companies. The researcher is optimistic that this research will definitely prove helpful in taking the correct decision and will help more number of companies to implement the cloud technology and reap the benefits of the same.