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Decision-making in cloud computing environments: A cost and risk based approach

Author

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  • Benedikt Martens

    (University of Osnabrueck)

  • Frank Teuteberg

    (University of Osnabrueck)

Abstract

In this article a sophisticated formal mathematical decision model is developed that supports the selection of Cloud Computing services in a multisourcing scenario. The objective is to determine the selection of appropriate Cloud Computing services offered by different providers. In order to do so, we consider cost as well as risk factors which are relevant to the decision scope. For example, coordination costs, IT service costs, maintenance costs and the costs of taken risks were compared. Risks are modeled by means of the three common security objectives integrity, confidentiality and availability. The managerial implications of the model lie in the sustainable decision support and the comprehensive decision approach. The formal model is prototypically implemented using a software tool and examined with the help of a simulation study in three realistic scenarios and a sensitivity analysis.

Suggested Citation

  • Benedikt Martens & Frank Teuteberg, 2012. "Decision-making in cloud computing environments: A cost and risk based approach," Information Systems Frontiers, Springer, vol. 14(4), pages 871-893, September.
    • Handle: RePEc:spr:infosf:v:14:y:2012:i:4:d:10.1007_s10796-011-9317-x
    DOI: 10.1007/s10796-011-9317-x
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    9. Adele Caldarelli & Luca Ferri & Marco Maffei, 2016. "I rischi derivanti dall?implementazione del cloud computing: un?indagine empirica nelle PMI Italiane," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2016(3), pages 27-48.
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    12. Shui-Lien Chen & June-Hong Chen & Shiou Chi Chang, 2017. "Understanding the Antecedents of Individuals Intention of Using Cloud Services," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(2), pages 139-166, August.
    13. Shui-Lien Chen & June-Hong Chen & Yung Hsin Lee, 2018. "A Comparison of Competing Models for Understanding Industrial Organization’s Acceptance of Cloud Services," Sustainability, MDPI, vol. 10(3), pages 1-20, March.
    14. Mahak Sharma & Ruchita Gupta & Padmanav Acharya, 2020. "Prioritizing the Critical Factors of Cloud Computing Adoption Using Multi-criteria Decision-making Techniques," Global Business Review, International Management Institute, vol. 21(1), pages 142-161, February.
    15. Vincent Cho & Aman Chan, 2015. "An integrative framework of comparing SaaS adoption for core and non-core business operations: An empirical study on Hong Kong industries," Information Systems Frontiers, Springer, vol. 17(3), pages 629-644, June.
    16. Xiaolong Zheng & Daniel Zeng & Fei-Yue Wang, 2015. "Social balance in signed networks," Information Systems Frontiers, Springer, vol. 17(5), pages 1077-1095, October.
    17. Fang Liu & Zhuming Bi & Eric L. Xu & Qin Ga & Quanyu Yang & Yingzhong Yang & Lan Ma & Tana Wuren & Rili Ge, 2015. "An integrated systems approach to plateau ecosystem management—a scientific application in Qinghai and Tibet plateau," Information Systems Frontiers, Springer, vol. 17(2), pages 337-350, April.
    18. Shuai Yuan & Sanjukta Das & Ram Ramesh & Chunming Qiao, 2023. "Availability-Aware Virtual Resource Provisioning for Infrastructure Service Agreements in the Cloud," Information Systems Frontiers, Springer, vol. 25(4), pages 1495-1512, August.
    19. Haoyi Xiong & Daqing Zhang & Daqiang Zhang & Vincent Gauthier & Kun Yang & Monique Becker, 2014. "MPaaS: Mobility prediction as a service in telecom cloud," Information Systems Frontiers, Springer, vol. 16(1), pages 59-75, March.
    20. Rashed Salem & Omar Boussaïd & Jérôme Darmont, 2013. "Active XML-based Web data integration," Information Systems Frontiers, Springer, vol. 15(3), pages 371-398, July.
    21. Chen, Li-Ming & Chang, Wei-Lun, 2020. "Under what conditions can an application service firm with in-house computing benefit from cloudbursting?," European Journal of Operational Research, Elsevier, vol. 282(1), pages 71-80.
    22. Jason J. Jung & Yue-Shan Chang & Ying Liu & Chao-Chin Wu, 2012. "Advances in intelligent grid and cloud computing," Information Systems Frontiers, Springer, vol. 14(4), pages 823-825, September.
    23. Jeng-Chieh Cheng & Jeen-Fong Li & Chi-Yo Huang, 2023. "Enablers for Adopting Restriction of Hazardous Substances Directives by Electronic Manufacturing Service Providers," Sustainability, MDPI, vol. 15(16), pages 1-45, August.
    24. Steve Jones & Zahir Irani & Uthayasankar Sivarajah & Peter E. D. Love, 2019. "Risks and rewards of cloud computing in the UK public sector: A reflection on three Organisational case studies," Information Systems Frontiers, Springer, vol. 21(2), pages 359-382, April.

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