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    Factors in Cloud Computing Adoption

    Master Thesis

    15 HEC INFM02 in informatics

    June 2012

    Authors Moneer Jlelaty

    Youssef Monzer

    Supervisors Nicklas Holmberg

    Odd Steen

    Examiners Markus Lahtinen

    Agneta Olerup

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    Cloud Computing Adoption, Jlelaty & Monzer

    2012

    2Lund University, School of Economics and Management, Information Systems Department

    Lund University

    Department of Informatics

    Factors in Cloud Computing Adoption

    Master Thesis

    Submitted on 25/05/2012

    Size: 91

    Authors: Moneer Jlelaty, Youssef Monzer

    Supervisors: Odd Steen, Nicklas Holmberg.

    Examiners: Agneta Olerup, Markus Lahtinen.

    Abstract

    Many organizations today are striving to gain competitive advantages and work

    efficiently in the demanding market through the adoption of ICT (Information and

    Communications Technology) solutions such as ERP (Enterprise Resource Management),

    CRM (Customer Relationship Management), and Business Analytics Systems. However,

    these Information Technology (IT) solutions can be quite expensive for small

    organizations (Misra and Mondal, 2011; Benlian and Hess, 2011).

    On the other hand, small organizations are trying to contend with large enterprises yet

    lack the capital to invest in ICT solutions (Wei, 2009). Cloud Computing can play a

    major role in this area as it helps organizations to use these solutions in a cost effective

    and affordable manner. Due to the fact that Cloud Computing is a fairly new technology,

    enterprises are either oblivious to its existence or lack confidence in its capabilities and

    solutions.

    During the conduction of this thesis we discover the factors organizations to consider

    prior to the adoption of the Cloud Computing solution while assigning each with its

    relevant level of significance only in relation to small organizations. The factorspresented will be important to be noted as it is concluded that Cloud Computing is rather

    suitable for small organizations.

    Keywords:

    Cloud Computing, Factors, Small Organizations, Adoption, IT Solution, Information

    Technology.

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    Cloud Computing Adoption, Jlelaty & Monzer

    2012

    3Lund University, School of Economics and Management, Information Systems Department

    Contents1. Introduction ............................................................................................................................ 6

    1.1. Background ...................................................................................................................... 6

    1.2. Problem Area ................................................................................................................... 7

    1.3. Research Question and Purpose ...................................................................................... 8

    1.4. Delimitations .................................................................................................................... 8

    1.5. Target Group .................................................................................................................... 9

    1.6. Knowledge Contribution .................................................................................................. 9

    2. Literature Review .................................................................................................................. 10

    2.1. Definition ....................................................................................................................... 10

    2.2. Core Technologies .......................................................................................................... 11

    2.3. Type Models of the Cloud .............................................................................................. 11

    2.4. Deployment Models of the Cloud .................................................................................. 12

    2.5. Stakeholders .................................................................................................................. 13

    2.6. Factors to be Considered in Cloud Computing Adoption .............................................. 14

    2.7. Cloud Computing in Small Organizations ....................................................................... 20

    2.8. Conclusion ...................................................................................................................... 21

    3. Research Methods ................................................................................................................ 23

    3.1. Method Choice ............................................................................................................... 23

    3.2. Data Collection ............................................................................................................... 23

    3.3. Design of Interview Guide .............................................................................................. 24

    3.4. Interviewing ................................................................................................................... 25

    3.5. Data Analysis .................................................................................................................. 28

    3.6. Scientific Quality and Ethics ........................................................................................... 29

    4. Empirical Findings.................................................................................................................. 31

    4.1. CityNetwork ................................................................................................................... 31

    4.2. Cloud Concept ................................................................................................................ 36

    4.3. Accenture ....................................................................................................................... 40

    5. Discussion .............................................................................................................................. 45

    5.1. The Influential Factors ................................................................................................... 45

    5.1.1. Reliability ............................................................................................................ 45

    5.1.2. Security ............................................................................................................... 46

    5.1.3. Performance ....................................................................................................... 46

    5.1.4. Scalability ........................................................................................................... 47

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    Cloud Computing Adoption, Jlelaty & Monzer

    2012

    4Lund University, School of Economics and Management, Information Systems Department

    5.1.5. Compliance and Physical Location ..................................................................... 47

    5.1.6. Integration with other Services .......................................................................... 48

    5.1.7. Environmental Issues ......................................................................................... 48

    5.1.8. Cost..................................................................................................................... 48

    5.1.9. Innovation .......................................................................................................... 49

    5.1.10. IT Departments Stand and Changes .................................................................. 49

    5.1.11. Cloud Model ....................................................................................................... 50

    5.1.12. Time to Market ................................................................................................... 50

    5.1.13. Ease of Use ......................................................................................................... 50

    5.1.14. Features.............................................................................................................. 51

    5.2. Suitability for Small Organizations Factors .................................................................... 51

    6. Conclusion ............................................................................................................................. 53

    Appendix A ..................................................................................................................................... 55

    A.1. Interview Guide: ................................................................................................................. 55

    A.2. Overview Table of Transcripts: ........................................................................................... 56

    A.3. Interview Transcripts .......................................................................................................... 65

    A.3.1. Interview Guide - Transcript CityNetwork........................................................................ 65

    A.3.2. Interview Guide - Transcript Cloud Concept.................................................................... 74

    A.3.3. Interview Guide - Transcript Accenture ........................................................................... 83

    References