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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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    15. 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.
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    17. 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.
    18. Masky Mackita & Soo-Young Shin & Tae-Young Choe, 2019. "ERMOCTAVE: A Risk Management Framework for IT Systems Which Adopt Cloud Computing," Future Internet, MDPI, vol. 11(9), pages 1-21, September.
    19. 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.
    20. 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.
    21. Venkataraghavan Krishnaswamy & R. P. Sundarraj, 2017. "Organizational implications of a comprehensive approach for cloud-storage sourcing," Information Systems Frontiers, Springer, vol. 19(1), pages 57-73, February.
    22. 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.
    23. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    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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