Risk-Benefit-Mediated Impact of Determinants on the Adoption of Cloud Federation

Netsanet Haile () and Jörn Altmann

No 2015122, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: As an emerging trend for maximizing IT resource utilization, cloud federation raises various technical, economic, and legal issues. In order to understand the future of its adoption among cloud providers, it is important to identify which factors can be driving or inhibiting the process. This study aims at closing this research gap and find out the strength of their inhibiting or facilitating factors. Factors suggested by relevant studies as determinants of cloud computing are compiled. Among those determinants, the most relevant factors are selected and, then, used to construct a model of hypothesized relationships of the determinants with the perception of risk and benefits of cloud federation, thus with the intention of joining a cloud federation. Data from a total of 300 cloud service providers, consultants, and IT experts were collected through a survey questionnaire. The model is evaluated using structural equation modeling. The findings show that, among the six determinants analyzed by the study, flexibility and competitive pressure showed strong positive impacts. Thus, they are considered the major drivers of cloud federation. Furthermore, interoperability, service quality decline, and legal issues could be linked to be strong inhibitors of cloud federation. However, all these determines are strongly mediated by the perceived risk and perceived benefit of cloud federation. The estimated results for cloud providers showed that large cloud providers are attracted to cloud federation due to the potential of offering flexible services, while small cloud providers are driven by competitive pressure to join a cloud federation.

Keywords: Cloud Computing; Cloud Federation; Structural Equation Modelling; Strategic Alliance; Survey; Adoption; Cloud Provider. (search for similar items in EconPapers)
JEL-codes: C12 C51 C83 D74 D81 L16 L86 M21 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2015-05, Revised 2015-05
New Economics Papers: this item is included in nep-ict
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Proceedings of Pacific Asia Conference on Information Systems (PACIS 2015).

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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:2015122

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