Cost benefit analysis approach for cloud computing

Abstract

The use of cloud computing services appears to offer significant cost advantages. Cost calculations are complicated due to the number of variables comprising inputs to the utility billing model of cloud computing. The aim of this paper is to conduct and describe the theoretical evaluation model of cloud computing with regard to the application in business practice in evaluating the effectiveness of investments. We applied a multi-method approach (systematic literature review, analysis of real cloud computing services, expert interview, case study) for the development and evaluation of the formal model.