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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.

Suggested Citation

  • Tong Wang, 2013. "Migration to the Public Cloud," EUI-RSCAS Working Papers 35, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  • Handle: RePEc:erp:euirsc:p0341
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    1. F. Maier-Rigaud, 2011. "Network Neutrality: A Competition Angle," Post-Print hal-00800766, HAL.
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