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Cloud Computing Metrics

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Submitted By sona1703
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Information Technology and Management Science

doi: 10.2478/v10313-012-0013-8 2012 /15

Cloud Computing Evaluation Based on Financial Metrics
Maksims Kornevs1, Vineta Minkevica2, 1-2Riga Technical University, Marcus Holm, Cisco Systems
Abstract – Interest in cloud computing is growing, and, as a result, there is much information about it – both positive and negative. On the one hand, cloud computing saves money because it does not require IT infrastructure, servers, and it is very scalable. On the other hand, it might lead to financial loss due to security risks, possible data access problems, data privacy policies, etc. Therefore, cloud computing evaluation based on financial metrics is proposed in this article. This paper consists of four major sections. The first section is a literature review of cloud computing and its types. The next section describes some common financial metrics such as CBA, ROI and TCO and describes how they might be applied to evaluate cloud computing. The third section proposes evaluation strategies, and the last section contains the evaluation of a series of cloud computing projects based on chosen evaluation strategies, and results are verified based on expert opinion. Keywords – cloud computing, CBA, ROI, TCO, ROC

computing as “a model for enabling convenient, on-demand network access to a shared pool of configuration computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction” [11] or in simple terms – “low cost flexible entry and exit”. According to Cisco IBSG research [12], in March 2011, at least 12 percent of all enterprise workloads will run on clouds (public, private, hybrid and community) with distribution based on different areas of enterprises shown in Fig. 1, and, as a result, the percentage of cloud users will grow.

I. INTRODUCTION Cloud computing

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