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Migration to the Public Cloud

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  • Tong Wang

Abstract

Along with the development of cloud computing technology, website owners begin to consider migrating their website from private in-house server to public cloud servers. In this paper, we use a principal-agent model to analyze the underlying economic trade-offs of such migration and then extend it into a dynamic environment. Our results indicate that the trade-off between market information precision and rent extraction affects the decision choice between private server and public cloud in the short run; in the long run, the rent extraction effect diminishes and the demand for public cloud increases. In a long run equilibrium, private servers exist but are constrained to a comparatively low level.

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  • Tong Wang, 2013. "Migration to the Public Cloud," RSCAS Working Papers 2013/35, European University Institute.
    • Handle: RePEc:rsc:rsceui:2013/35
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    1. F. Maier-Rigaud, 2011. "Network Neutrality: A Competition Angle," Post-Print hal-00800766, HAL.
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      Keywords

      Cloud Computing; Agency Cost; Dynamic Migration.;
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