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Open Access 2020 | Open Access | Book

Cover of the book

Measuring the Business Value of Cloud Computing

Editors: Prof. Theo Lynn, Prof. John G. Mooney, Dr. Pierangelo Rosati, Grace Fox

Publisher: Springer International Publishing

Book Series : Palgrave Studies in Digital Business & Enabling Technologies

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

The importance of demonstrating the value achieved from IT investments is long established in the Computer Science (CS) and Information Systems (IS) literature. However, emerging technologies such as the ever-changing complex area of cloud computing present new challenges and opportunities for demonstrating how IT investments lead to business value. Recent reviews of extant literature highlights the need for multi-disciplinary research. This research should explore and further develops the conceptualization of value in cloud computing research. In addition, there is a need for research which investigates how IT value manifests itself across the chain of service provision and in inter-organizational scenarios.

This open access book will review the state of the art from an IS, Computer Science and Accounting perspective, will introduce and discuss the main techniques for measuring business value for cloud computing in a variety of scenarios, and illustrate these with mini-case studies.

Table of Contents

Frontmatter
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Open Access

Chapter 1. Measuring the Business Value of IT
Abstract
Firms have consistently struggled to measure the business value of information technology (IT). In an era where IT is transitioning to a services model, firms are replacing capital expenditure with operating expenditure. The implications for IT business value measurement are significant. In this chapter, we examine the state of knowledge about IT business value with particular emphasis on established metrics for IT business value. We then consider how these metrics might be applied to cloud-based services. The move to a services model further provides an opportunity to consider IT business value in a new light by considering how cloud technologies enhance IT agility, how firms can monetise their data, and how firms now have greater flexibility around IT use than ever before.
Paul P. Tallon, John G. Mooney, Marvin Duddek
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Open Access

Chapter 2. Measuring the Business Value of Infrastructure Migration to the Cloud
Abstract
Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) adoption typically require radical changes in an organisation’s IT operations and have widespread implications that go beyond simple cost savings. This chapter presents a practical framework for estimating the Return on Investment (ROI) for IaaS and PaaS from the customer perspective. The proposed framework aims to overcome the main limitations of commonly-used Total Cost of Ownership (TCO) calculators by including both tangible and intangible costs and benefits to provide a more comprehensive ROI estimation. The application of the framework is illustrated using a real-life case study of infrastructure migration.
Pierangelo Rosati, Theo Lynn
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Open Access

Chapter 3. The SaaS Payoff: Measuring the Business Value of Provisioning Software-as-a-Service Technologies
Abstract
Creating and capturing value with new digital technologies such as cloud computing is often fraught with complexity and ambiguity for incumbent information technology (IT) firms. Using the business model concept as a lens, the objective of this chapter is to address a current gap in our knowledge about the impact of Software-as-a-Service (SaaS) on incumbent IT supply-side organisations. The empirical findings from a cross-case study analysis of two incumbent IT service providers lead to a number of in-depth insights that are discussed in this paper. The study identifies six tangible business model payoffs that have resulted from provisioning SaaS technologies. Subsequently, this paper lays the foundation for contributing to understanding how SaaS technologies can influence business models.
Trevor Clohessy, Thomas Acton, Lorraine Morgan
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Open Access

Chapter 4. Cloud Service Brokerage: Exploring Characteristics and Benefits of B2B Cloud Marketplaces
Abstract
With the increasing popularity of cloud computing, a new technology and business model called cloud service brokerage (CSB) is emerging. CSB is, in essence, a middleman in the cloud-computing supply chain to connect prospective cloud buyers with suitable service providers. This chapter focuses on a type of CSB, B2B cloud marketplaces. Recently, this type of marketplace has evolved into two broad categories—business application marketplaces and API marketplaces. This chapter reviews the characteristics of B2B cloud marketplaces, and their benefits, which include ease-of-use and ease-of-integration, enhanced security, increased manageability, faster implementation, and cost reduction. The chapter concludes with two mini-case studies, on Salesforce AppExchange and RapidAPI, to illustrate how firms could use B2B cloud marketplaces to generate, capture and measure business value.
Victoria Paulsson, Vincent C. Emeakaroha, John Morrison, Theo Lynn
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Open Access

Chapter 5. Refinement of Cost Models for Cloud Deployments through Economic Models Addressing Federated Clouds
Abstract
Ten different cloud deployment models (e.g. public clouds, private clouds, and federated clouds) can be selected by users, depending on their requirements for executing their applications. As each of these deployment models comes with certain costs and benefits, they need to be understood by users to ensure they make an optimal selection. In order to support this decision making process, a comprehensive cost model that comprises all relevant cost factors is needed. The aim of this chapter is to present such a comprehensive cost model comprising all relevant cost factors and an economic models underlying the various cloud deployment models. In particular, an architecture for managing federated clouds using an economic model is discussed in the outlook on future research.
Jörn Altmann, Ram Govinda Aryal
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Open Access

Chapter 6. Value Creation and Power Asymmetries in Digital Ecosystems: A Study of a Cloud Gaming Provider
Abstract
Digital platforms connecting users and service providers have a central role in determining the value creation structure of ecosystems. Platform developers try to achieve a dominant position for the platform with a strong ecosystem around it. The size and attractiveness of the services can attract new users, and growing user volume can bring new co-operative service providers to the service partner network. An interesting question is how the presence of power and potential power asymmetry affect the value creation capability and the structure of a network around a platform? This chapter describes an example of value creation and the influence of power asymmetry in a digital ecosystem built around a cloud gaming platform.
Arto Ojala, Nina Helander, Pasi Tyrväinen
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Chapter 7. Measuring the Business Value of Cloud Computing: Emerging Paradigms and Future Directions for Research
Abstract
Much of the research on measuring the business value of cloud computing examines cloud computing from the perspective of a centralised commodity-based aggregated conceptualisation of cloud computing, largely based on the NIST reference architecture. Advances in new processor architectures and virtualisation combined with the rise of the Internet of Things are not only changing cloud computing but introducing new computing paradigms from the cloud to the edge. These new paradigms present both opportunities and challenges, not least managing complexity several orders of magnitude greater than today. Yet, academic research on measuring the business value of cloud computing is lagging practice and remains far removed from these innovations. New research is required that explores the relationship between investments in new cloud computing paradigms and business value, and the measurement thereof. This chapter explores a selection of these new paradigms, which may provide fruitful research pathways in the future.
Theo Lynn, Pierangelo Rosati, Grace Fox
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Backmatter
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Metadata
Title
Measuring the Business Value of Cloud Computing
Editors
Prof. Theo Lynn
Prof. John G. Mooney
Dr. Pierangelo Rosati
Grace Fox
Copyright Year
2020
Electronic ISBN
978-3-030-43198-3
Print ISBN
978-3-030-43197-6
DOI
https://doi.org/10.1007/978-3-030-43198-3

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