Cloud Computing: A Case Study for the New Idea of the IS/IT Implementation

Purpose: This paper aims to present the conception of cloud computing, its definitions, main service and implementation models. The authors objective is to compare the traditional way of managing and implementing IS/IT in enterprises with the idea of cloud computing. Intent of this work is to juxtapose main economical benefits from adopting cloud solutions and examine its impact on business organisation and market approach. Authors’ aim is to indicate conditions influencing the abilities to effective use of potential of IS/IT implementation via cloud computing. Design/methodology/approach: This article is based on a detailed analysis of business and economical writings concerning cloud computing model. For the purposes of illustrating the effect of implementation the cloud for IS/IT migration authors’ used company which hosts large amount of customer data. The research contains comparison of traditional model of managing of IT supply chain and SaaS model in terms of Total Cost of Ownership. After establishing TCO we review financial measures such as: net present value, return on investment, payback and apply it to investments in cloud computing. Findings: IT implementation is a cost consuming process. Enterprises are permanently seeking methods of reducing costs and ways to improve their business flexibility. Analysis provided in this paper indicates that adopting cloud computing as a method of building IT infrastructure could provide business benefits. Main advantages of cloud computing compared to traditional IT resources management are: reduction of capital expenditure, greater competiveness of small businesses through accessibility to the newest technologies and solutions, shortening time-to-market. Basing on the sample case study results of applied metrics shows that investing in cc solution is beneficial to the company. Practical implications: This article will give recommendations on decision making in conducting business and distinguishing between the perceived benefits, actual benefits and associated risks of implementing new technologies.