Cloud Computing Suitability

Topics: Cloud computing, Utility computing, Grid computing Pages: 30 (10501 words) Published: September 11, 2011
Mathematical and Computer Modelling 53 (2011) 504–521

Contents lists available at ScienceDirect

Mathematical and Computer Modelling
journal homepage:

Identification of a company’s suitability for the adoption of cloud computing and modelling its corresponding Return on Investment Subhas Chandra Misra ∗ , Arka Mondal 1
Department of Industrial and Management Engineering, Indian Institute of Technology, Kanpur, India



Internet has become pervasive in our daily life and cloud computing is the newest offering as service over the ubiquitous Web. Cloud computing has been considered as a much hyped phenomenon in the IT and business world promising to deliver a host of benefits. Companies need to look beyond this hype and seriously consider the real value of incorporating the Cloud in their own businesses. This paper is aimed at helping companies analyze several characteristics of their own business as well as pre-existing IT resources to identify their favorability in the migration to the Cloud Architecture. A general Return on Investment (ROI) model has also been developed here taking into consideration various intangible impacts of Cloud Computing, apart from the cost. The analysis presented herein provides a much broader perspective and insight into Cloud Computing to its prospective adopters. © 2010 Elsevier Ltd. All rights reserved.

Article history: Received 1 November 2009 Received in revised form 15 March 2010 Accepted 16 March 2010 Keywords: Cloud computing Return on Investment (ROI) Benefits of cloud computing Cost of cloud computing

1. Introduction Cloud computing (CC) [1] is a paradigm shift in computing with the potential of changing the whole perspective with which we look at computing today. Currently, desktops, laptops and numerous such devices have penetrated into our daily lives and have become indispensable [2]. It will not be too long from now that all we will need to know is that there is one huge computer at a remote location (without even knowing where it is) which has the potential to provide all the computational power and resources that we ever really need. CC can be defined as collection disembodied services accessible from anywhere using any mobile device with an Internet connection, provided by a type of parallel and distributed system of virtualized computers that are interconnected and that can be dynamically provisioned and presented as one or more unified computing resources based on Service-Level Agreements (SLAs) established between the service provider and the user [3–5]. In this paper, we analyze some of the economic aspects of migration to cloud architecture. Specifically, we attempt to model ROI in using CC in organizations. Studies of the economic aspects, in general, and ROI, in particular, are important organizational considerations in the adoption of any new technology. In the context of Grid Computing [6,7], for example, works (e.g., [8–16]) relating to these aspects exist. As CC is an important technological trend, it is also important to study these economic aspects of CC. There are different cloud delivery models (e.g., [3,17,18]) based on pay-per-use models, viz., Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS). Software-as-a-Service (SaaS) may be described as a process by which different software applications are provided by the Application Service Provider (ASP) as a rental over the Internet leveraging cloud infrastructure. This eliminates the necessity for installing and running the application on the customer’s own computer. It also diminishes the tremendous load of software maintenance, ongoing operation and

Corresponding author. E-mail address: (S.C. Misra).

1 Current Address: Motilal Nehru National Institute of Technology, Allahabad, Uttar Pradesh, India. 0895-7177/$ – see front matter © 2010 Elsevier Ltd. All rights...

References: [1] A. Weiss, Computing in the clouds, NetWorker 11 (4) (2007) 16–25. [2] A. Chien, B. Calder, S. Elhert, K. Bhatia, Entropia: architecture and performance of an enterprise desktop grid system, Journal of Parallel and Distributed Computing 63 (5) (2003) 597–610. [3] J. Pyke, Now is the time to take the cloud seriously. to_take_the_cloud_seroiusly_online_1_.pdf. [4] R. Buyya, C.S. Yeo, S. Venugopal, Market-oriented cloud computing: vision, hype, and reality for delivering IT services as computing utilities, in: Proceedings of the 2009 9th IEEE/ACM International Symposium on Cluster Computing and the Grid, vol. 00, 2009. [5] J. Broberg, S. Venugopal, R. Buyya, Market-oriented grids and utility computing: the start-of-the-art and future directions, Journal of Grid Computing 6 (3) (2008) 255–276. [6] I. Foster, C. Kesselman (Eds.), The Grid: Blueprint for a Future Computing Infrastructure, Morgan Kaufmann, San Francisco, USA, 1999. [7] M. Chetty, R. Buyya, Weaving computational grids: how analogous are they with electrical grids? Computing in Science and Engineering 4 (4) (2002) 61–71. [8] Alek Opitz, Hartmut König, Sebastian Szamlewsk, What does grid computing cost? Journal of Grid Computing 6 (4) (2008) 385–397. [9] Enis Afgan, Purushotham Bangalore, Computation cost in grid computing environments, in: 29th International Conference on Software Engineering Workshops, ICSEW’07, 2007, p. 9. ISBN 0-7695-2955-0. [10] Zhengyou Liang, Ling Zhang, Shoubin Dong, Wenguo Wei, Charging and accounting for grid computing system, grid and co-operative computing, in: Lecture Notes in Computer Science, vol. 3003, ISBN: 978-3-540-21993-4, 2004, pp. 644–651. [11] Roman Beck, Michael Schwind, Oliver Hinz, Grid economics in departmentalized enterprises, Journal of Grid Computing 6 (3) (2008) 277–290. [12] Michael Schwind, Oliver Hinz, Roman Beck, A cost-based multi-unit resource auction for service-oriented grid computing, in: Proceedings of the 8th IEEE/ACM International Conference on Grid Computing, 2007, pp. 137–144. ISBN: 978-1-4244-1559-5. [13] Dirk Neumann, Jochen Stößer, Christof Weinhardt, Jens Nimis, A framework for commercial grids-economic and technical challenges, Journal of Grid Computing 6 (3) (2008) 325–347. [14] Daniel J. Veit, Wolfgang Gentzsch, Grid economics and business models, Journal of Grid Computing 6 (3) (2008) 215–217. [15] James Broberg, Srikumar Venugopal, Rajkumar Buyya, Market-oriented grids and utility computing: the state-of-the-art and future directions, Journal of Grid Computing 6 (3) (2008) 255–276. [16] Ramayya Krishnan, Grid economics: a selective discussion of two research problems, Journal of Grid Computing 6 (3) (2008) 219–224. [17] M. Armbrust, A. Fox, R. Griffith, Anthony D. Joseph, R.H. Katz, A. Konwinski, G. Lee, D.A. Patterson, A. Rabkin, I. Stoica, M. Zaharia, Above the clouds: a berkeley view of cloud computing, February 10, 2009. [18] Mckinsey report, clearing the air on cloud computing. [19] E. Burke, Categorizing data sensitivity for computer security, No. 222, March 4, 2001. html. [20] Avanade, 2009 global survey of cloud computing, February 2009. cloudsurveyexecsummary810844.pdf. [21] Werner Streitberger, Sebastian Hudert, Torsten Eymann, Bjoern Schnizler, Floriano Zini, Michele Catalano, On the simulation of grid market coordination approaches, Journal of Grid Computing 6 (3) (2008) 349–366. [22] G. Stuer, K. Vanmechelena, J. Broeckhovea, A commodity market algorithm for pricing substitutable grid resources, Future Generation Computer Systems 23 (5) (2007) 688–701. [23] K. Lai, L. Rasmusson, E. Adar, L. Zhang, B.A. Huberman, Tycoon: an implementation of a distributed, market-based resource allocation system, Multiagent and Grid Systems 1 (3) (2005) 169–182. [24] R. Buyya, C.S. Yeo, S. Venugopal, Market-oriented cloud computing: vision, hype, and reality for delivering computing as the 5th utility, December 2008. [25] R. Buyya, C.S. Yeo, S. Venugopal, J. Broberg, I. Brandic, Cloud computing and emerging IT platforms: vision, hype, and reality for delivering computing as the 5th utility, Future Generation Computer Systems 25 (2009) 599–616. [26] M. Maheswaran, Cloud computing, Seminar Report, Cochin University of Science and Technology, India, November 2008. [27] A. Edlund, Cloud computing, pay-as-you-go computing explained. [28] D. Chappell, Chappell and Associates, Cloud platforms today: a perspective, April 18, 2009. [29] Survey: cloud computing ‘no hype’, but fear of security and control slowing adoption. hype_security. [30] B. Matthews, D. Chapman, Alsbridge cloud computing survey—summary of findings, 21st April 2009. [31] ROI Case Study, Nucleus, Document I117, January 2009. [32] D. Hinchcliffe, What does cloud computing actually cost? An analysis of the top vendors, ebiz: the Insider’s Guide to Business and IT Agility. [33] Financial implications of the cloud, Infosys Microsoft Alliance and Solutions Blog. implications_of_the_1.html. [34] D. Rosenberg, The cost of cloud adoption. [35] T. Schadler, Should your email live in the cloud? A comparative cost analysis, January 5, 2009. [36] R. Dargha, Cloud computing: key considerations for adoption, Infosys Technologies, April 2009. [37] Cloud computing. [38] W. Vogels, Beyond server consolidation, ACM Queue 6 (1) (2008) 20–26. [39] P.R. Krugman, Maurice Obstfeld, International Economics: Theory and Policy, sixth ed., Economies of Scale, Imperfect Competition & International Trade, 2003 (Chapter 6). [40] D. Abramson, R. Buyya, J. Giddy, A Computional economy for grid computing and its implementation in the Nimrod-G resource broker, Future Generation Computer Systems 18 (8) (2002) 1061–1074. [41] R. Buyya, D. Abramson, S. Venugopal, The grid economy, Proceedings of the IEEE 93 (3) (2005) 698–714. [42] Rich Miller, Who has the most web servers? May 2009. whos-got-the-most-web-servers/. [43] S. Chari, Confronting the data center crisis: a cost–benefit analysis of the IBM computing on demand (CoD) cloud offering, March 2009. [44] The high volume web sites team, ‘‘Knowing your workload’’, Best Practices for High-Volume Web Sites, IBM RedBooks, 2002. [45] J. Broberg, Z. Tari, MetaCDN: harnessing storage clouds for high performance content delivery, in: Proc. Sixth Intl. Conference on Service-Oriented Computing, ICSOC 2008, Sydney, Australia, 2008. [46] S. Mansfield-Devine, Danger in the clouds, Network Security (12) (2008) 9–11. [47] K.M. Cullagh, Data sensitivity: resolving the conundrum 1. 20the%20conundrum.pdf. [48] K. Keahey, I. Foster, T. Freeman, X. Zhang, Virtual workspaces: achieving quality of service and quality of life in the grid, Scientific Programming 13 (4) (2005) 265–275. [49] S. Venugopal, R. Buyya, L. Winton, A grid service broker for scheduling E-science applications on global data grids, Concurrency and Computation: Practice and Experience 18 (6) (2006) 685–699.
S.C. Misra, A. Mondal / Mathematical and Computer Modelling 53 (2011) 504–521
[50] I. Brandic, S. Pllana, S. Benker, Specification planning, and execution of QoS-aware grid workflows within the amadeus environment, Concurrency and Computation: Practice and Experience 20 (4) (2008) 331–345. [51] B. Maggs, Global internet continent delivery, in: Proc. 1st IEEE/ACM Intl. Symposium on Cluster Computing and the Grid, CCGrid 2001, Brisbane, Australia, May 2001. [52] K. El Emam, The ROI From Software Quality, Auerbach Publications, 2005. [53] IBM, Seeding the clouds: key infrastructure elements for cloud computing, February 2009. [54] K.S. Pawar, U. Menon, J.C.K.H. Riedel, Time to market, Integrated Manufacturing Systems 5 (1) (1994) 14–22. [55] J. Koomey, K. Brill, P. Turner, B. Taylor, J. Stanley, A simple model for determining true total cost of ownership for datacenters, Uptime Institute. [56] [57] J. Hoffer, Backing up business—industry trend or event, Health Management Technology. [58] Nathesh, Green technology—aberdeen report reveals advantages of green retail initiatives, August 14, 2008. topics/green/articles/37018-aberdeen-report-reveals-advantages-green-retail-initiatives.htm and oiw03022usen.pdf.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Amazon: Grid Computing and Web Services Essay
  • Cloud Computing Essay
  • Cloud Computing Research Paper
  • Cloud Computing Essay
  • Cloud Computing Essay
  • Cloud Computing Essay
  • cloud computing Essay
  • Cloud Computing Essay

Become a StudyMode Member

Sign Up - It's Free