PROBLEMS OF TRANSITION FROM CLASSICAL DEDICATED ICT SYSTEM TO CLOUD COMPUTING

Josip Mesaric () and Nenad Stanisic ()
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Josip Mesaric: Faculty of Economics in Osijek
Nenad Stanisic: Hrvatske sume Ltd, Nasice, Croatia

Interdisciplinary Management Research, 2015, vol. 11, 976-988

Abstract: Technological solutions, which most of ICT processes are still based on in business systems, are classical desktop systems and client-server systems. Some typical characteristics of such systems are poor utilization of processing possibilities, overcapacity of storage systems, data and application redundancy, relatively high security as well as relatively low portability and scalability. The paper deals with advantages and shortcomings of the conceptual model of capital expenses and operational expenses of classical ICT systems compared to the cloud computing with an emphasis on the problem of demands defi nition and their valuation, as well as ICT capacity utilization. Also, the costs of classical and potential cloud computing options are investigated, especially in the context of total costs of ownership. The paper has revealed a problem of precise historical data availability for different kinds of ICT expenses. The model and TCO have been analysed on the case of one big Croatian company.

Keywords: Cloud computing; classical computing; overcapacity; undercapacity; TCO (search for similar items in EconPapers)
JEL-codes: L63 M15 M19 (search for similar items in EconPapers)
Date: 2015
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