RISK AS SOURCE OF RELUCTANCE TO SAAS ADOPTION IN EUROPE

Nedzad Fajic
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Nedzad Fajic: University Politehnica of Bucharest, Faculty of Engineering and Management of Technological Systems, Romania

Interdisciplinary Management Research, 2014, vol. 10, 226-235

Abstract: Cloud computing is among the most discussed issues in the information communication and technology (ICT) sector. Information technology (IT) infrastructure is altered by the business methods due to cloud computing and moved ahead towards a utility model of ‘pay as you go’. Instead of spending time with constructing, managing, maintaining and running their own physical infrastructure, now firms can host their applications, platforms and storage in data centers on virtual servers supported by professional third parties. Such services based out of the ‘cloud’ assist agile and cost efficient business surroundings. The most essential economic influence of cloud technology could exist in developed competitiveness and cost savings of existing IT services, as well as in introducing new services to private and public companies. Because of the bulk buying of hardware and processing power, demand aggregation, and decreased costs of labor per unit, cloud providers can achieve essential savings on their runing price and pass these on to their customers. Businesses can utilize the cloud computing technologies, thereby using better equipment with more flexibility, being faster, and having lower expenditures of capital. Customers of cloud computing technologies make data and online content interactive and accessible for users. Given the importance of cloud computing, not many studies have been conducted from the adoption perspective and, in particular, have not sought to identify factors of risk in the most popular cloud computing deployment model, which is Software-as-a-Service (SaaS). This paper provides an overview on the European cloud computing perspective and assesses the risks in SaaS.

Keywords: Cloud Coomputing; SaaS; Software-as-a-Service; Europe; Risks (search for similar items in EconPapers)
JEL-codes: L86 (search for similar items in EconPapers)
Date: 2014
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