Beyond Cost Savings: Assessing the Business Value of

Cloud Computing Adoption

Authors; Eddah Thuo, Emmanuel Mberu, Nick Abura, Timothy Thiani, David Kimani, Osawaru Edokpolo

Work distribution:

1. Abstract - Eddah
2. Introduction - Emmanuel
3. Literature Review - Osawaru (to be done later)
4. Materials and Methods
a. Development of the google forms/ whats app surveys etc - Nick
b. Distribution - Timothy
c. Analysis of the feedback obtained - David
5. Discussion and Findings - Osawaru & Emmanuel
6. Conclusions - Eddah
7. References - Everyone
Introduction
In times of socio-economic stagnation, small and medium enterprises are seen as propellers of growth
and gateways to a new future [4]. With the rapid advancements of technology, it has enabled a new
pool of opportunities in which we are still only seeing the beginning of; one of these emerging
technologies is ‘cloud computing’. Cloud computing is generally referred to as the providing of internet-
base computing services, it is built on existing services such as grid computing and virtualization [1]. It
allows its adopters to access a network of remote servers hosted on the internet to store, manage and
process data, rather than owning their own local servers or PCs.

In modern society it is hard to run any form of business and scale to a competitive level without the use
of IT. This cloud computing technology has bridged a gap in the need for acquiring the necessary IT
infrastructure allowing these small and medium enterprises to compete at higher levels, something
which wasn’t possible until recent years. The technology is seeing rapid rates of adoption due to the
scalability, flexibility, agility, and simplicity it offers to enterprises [1]. With such technology available we
want to understand what business values do enterprises have that may influence their choice to adopt
cloud computing or not.
Research Objectives

1. Examine Flexibility and Resource Optimization: Analyze how cloud computing enables organizations
to optimize resource utilization, streamline IT operations, and dynamically allocate resources based on
changing business needs and priorities.

2. Explore Strategic Alignment and Competitive Advantage: Assess the extent to which cloud
computing adoption aligns with organizational strategic goals, enhances competitiveness, and facilitates
differentiation in the marketplace.

3. Evaluate the Impact on Organizational Agility: Assess how cloud computing adoption influences the
agility and responsiveness of organizations in adapting to market changes, scaling operations, and
delivering products and services.

4. Examine Innovation Enablement: Investigate the role of cloud computing in enabling innovation
within organizations, including the development of new products, services, business models, and
customer experiences.

5. Assess Cost-effectiveness Beyond Direct Savings: Explore the broader cost-effectiveness of cloud
computing adoption, considering factors such as operational efficiency, resource optimization, and the
ability to reallocate IT budgets towards strategic initiatives.

6. Analyze Scalability and Elasticity Benefits: Examine the scalability and elasticity benefits of cloud
computing, particularly in accommodating fluctuating workloads, handling peak demands, and
supporting business growth without significant infrastructure investments.

7. Investigate Performance and Reliability Enhancements: Evaluate the impact of cloud computing on
the performance, reliability, and availability of IT systems and services, including uptime, latency,
response times, and service-level agreements (SLAs).

8. Assess Risk Mitigation and Security: Investigate how cloud computing adoption affects risk
mitigation strategies and enhances cybersecurity posture, including data protection, threat detection,
compliance adherence, and disaster recovery capabilities.
9. Investigate User Experience and Productivity: Explore the impact of cloud computing on user
experience, productivity, and collaboration, including access to applications and data from anywhere,
seamless integration across devices, and support for remote work.
Research Methodology

We crafted this methodology to explore the multifaceted dimensions of cloud computing's impact on
organizational value creation. This study will employ a systematic approach, beginning with the
distribution of intricately designed questionnaires to a diverse array of organizations across various
industries and geographic locations. The questionnaire will be built using Google Forms and will delve
into the motivations driving cloud adoption, the challenges encountered during implementation, and
the perceived benefits derived from cloud-based solutions. The questions will contain a well crafted
combination of multiple-choice and open-ended questions and will be fine-tuned to ensure clarity,
relevance, and efficacy, drawing upon insights from domain experts in cloud computing and
organizational management [18].

Efforts will be undertaken to enhance response rates through clear instructions and diligent follow-up
measures to remind non-respondents of the survey's importance [17]. The aim is to secure a robust and
diverse dataset reflective of a broad spectrum of organizational experiences and perspectives regarding
the business value of cloud computing adoption. Upon completion of the data collection phase, the
collected questionnaire responses will undergo rigorous analysis employing both quantitative and
qualitative methodologies to glean comprehensive insights [17].

Quantitative analysis will entail the aggregation and synthesis of data to discern prevalent trends,
correlations, and statistical patterns relevant to the business value of cloud computing adoption [18].
Simultaneously, qualitative analysis will delve into the rich tapestry of open-ended responses,
unearthing nuanced insights and thematic threads embedded within [18]. Subsequently, the regression
analysis method will be employed to ascertain the relationships and dependencies among users'
responses, thereby illuminating the intricate relationship of different elements influencing the business
value derived from cloud adoption. This integrated approach aims to furnish a holistic understanding of
cloud computing's impact on organizational strategy, performance, and value creation, guiding informed
decision-making processes in the digital age [17].

We will also employ a comparative assessment approach to juxtapose the findings with existing
literature and industry benchmarks. This comparative analysis will provide contextual insights into the
observed trends and patterns, offering a deeper understanding of the unique factors driving business
value in the context of cloud computing adoption. Moreover, the study will explore potential variables
that may influence the relationship between cloud adoption and organizational performance, such as
organizational size, industry sector, and technological maturity [16]. By integrating findings from the
survey data with insights from academic research and industry best practices, the study aims to provide
actionable recommendations for organizations seeking to maximize the business value derived from
cloud computing adoption. Ultimately, this research endeavors to contribute to the evolving discourse
surrounding cloud computing's role in fostering innovation, agility, and competitive advantage in today's
dynamic business landscape [19].

Questionnaire
1. Cloud computing can eliminate the need for businesses to perform regular software updates and
maintenance.

TRUE

FALSE

2. By adopting cloud computing, businesses can experience greater scalability and flexibility in
their operations.

TRUE

FALSE

3. Cloud computing adoption always leads to an increase in the overall headcount of an IT

department.

TRUE

FALSE

4. Adopting cloud computing guarantees a company will have a competitive advantage over those that
do not use the cloud.

TRUE

FALSE

5. The initial migration to cloud computing does not require a strategic plan to avoid potential
pitfalls such as downtime or data loss.
 TRUE

FALSE

6. Cloud computing can reduce capital expenditures since it often operates on a pay-as-you-go
model.

TRUE

FALSE

7. One of the benefits of cloud computing is the ability to access applications and data from anywhere,
at any time.

TRUE

FALSE

8. Data security and compliance concerns are completely eliminated when a company moves to cloud
computing.

TRUE

FALSE

9. One of the benefits of cloud computing is the ability to access applications and data from anywhere,
at any time.

TRUE

FALSE

10. What is your current role within your organization?

Executive/Leadership

IT/Technology

Operations

Finance

Other (please specify)

11. How familiar are you with cloud computing?

Very familiar
 Somewhat familiar

Not familiar at all

12. Which industry sector does your organization operate in?

Education

Medical

Finance

Technology

Agriculture

Transportation & Logistics

Retail

Other (please specify)

13. Has your organization adopted any cloud computing services or solutions?

Yes

No

In the process of adopting

14. What specific benefits do you believe cloud computing brings to businesses and organizations?
(Select all that apply)

Cost reduction

Increased agility

Enhanced scalability

Improved accessibility

Better disaster recovery capabilities

Facilitated innovation

Other (please specify)

15. In a scale of preference which features of cloud computing would you consider most impactful for
your organization?

Cloud Features Very Important Fairly Neutral Slightly Not

Important Important Important

Cost reduction

Security

Flexibility & Agility

Scalability

Improved
Collaboration

Global Access

Disaster Recovery
and Business
Continuity

16. How do you perceive the impact of cloud computing adoption on businesses and organizations?

Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative

17. How confident are you in the security of cloud computing services compared to on-premises
solutions?

Very confident

Somewhat confident

Neutral
 Somewhat not confident

Not confident at all

18. In your opinion, how does cloud computing contribute to enhancing collaboration and innovation
within your organization?

19. From a financial perspective, how do you perceive the return on investment (ROI) of cloud
computing adoption in your organization?

20. How has the accessibility of cloud-based resources impacted your organization's ability to support
remote work and distributed teams?

21. What challenges, if any, have you encountered during the transition to cloud-based systems, and
how have you addressed them?

22. Looking ahead, what role do you envision cloud computing playing in the future growth and success
of your organization?
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