Evaluation of Cloud Computing Hidden Benefits by Using Real Options Analysis

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21230%2F16%3A00306455" target="_blank" >RIV/68407700:21230/16:00306455 - isvavai.cz</a>

Result on the web

<a href="https://aip.vse.cz/index.php/aip/article/view/159" target="_blank" >https://aip.vse.cz/index.php/aip/article/view/159</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.aip.92" target="_blank" >10.18267/j.aip.92</a>

Result language

angličtina

Original language name

Evaluation of Cloud Computing Hidden Benefits by Using Real Options Analysis

Original language description

Cloud computing technologies have brought new attributes to the IT world. One of them is a flexibility of IT resources. It enables effectively both to downsize and upsize the capacity of IT resources in real time. Requirements for IT size change defines business strategy and actual market state. IT costs are not stable but dynamic in this case. Standard investment valuation methods (both static and dynamic) are not able to include the flexibility attribute to the evaluation of IT projects. This article describes the application of the Real Options Analysis method for the valuation of the cloud computing flexibility. The method compares costs of the on-premise and cloud computing solutions by combining put and call option valuation. Cloud computing providers can use the method as an advanced tool that explains hidden benefits of cloud computing. Unexperienced cloud computing customers can simulate the market behavior and better plan necessary IT investments.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Informatica Pragensia

ISSN

1805-4951

e-ISSN

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Volume of the periodical

5

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

18

Pages from-to

162-179

UT code for WoS article

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EID of the result in the Scopus database

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