Chen, Thomas; Chuang, Ta-Tao; and Nakatani, Kazuo (2016) “The Perceived Busines Benefit of Cloud Computing: An Exploratory Study,” Journal of International Technology and Information Management: Vol. 25 : Iss. 4 , Article 7. https://scholarworks.lib.csusb.edu/jitim/vol25/iss4/7
The Perceived Business Benefit of Cloud Computing article review
https://scholarworks.lib.csusb.edu/cgi/viewcontent.cgireferer=https://www.google.com/&httpsredir=1&article=1297&context=jitim
What is the Abstract of the article?
The objective of the research is to study the benefits of cloud computing perceived by adopters and examine the impact of moderating factors on the relationship between the type of cloud computing and the perceived benefit. The moderating factors include firm size and value-chain activities. A measurement instrument of a 5-point Likert scale was administered on businesses of different sizes in Taiwan. The benefit of cloud computing measured in the study were: cost reduction, improved capability and enhanced scalability. The results show that the perceived benefit of cloud computing varies depending on the type of cloud computing, the value chain activity where cloud computing is deployed, and the business size. Also, businesses benefit more in enhanced scalability than in cost reduction and increased business capability. After adopting cloud computing, businesses gain more capability in support activities than in primary activities. However, there is no significant difference in composite benefit among Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Furthermore, there is marginally significant interaction effect between the types of cloud computing and the business size.
Was the study experimental or non-experimental? Explain.
This study is considered non-experimental because it used a 5-point Likert scale questionnaire as a measurement instrument for the collection of data. The data collected in this non-experimental study derived from companies in Twain who were early adopters of benefits of cloud-based computing.
Was the research qualitative or quantitative? Explain.
In my opinion both qualitative and quantitative research was used. A 5-point Likert questionnaire was initially used first in the study. A research model was developed to show different research variables of cloud-based computing. The model helps one to understand the purpose and the different types of cloud computing. A descriptive statistic of the data was used to develop another model within this study which indicated to me the use of mixed method of quantitative and qualitative design.
What was the population studied?
The population in this study were companies in Taiwan who adapted cloud computing early.
What was the sample used for this study?
The population of subjects was companies with capital of TWD$500,000.00 or more that were registered in Taiwan.
What was the method of measurement?
The method of measurement was a 5-point Likert scale questionnaire which was used to collect the data to support this study.
What was the method of analysis?
The collected data from the 5-point Likert scale was grouped, compacted, and explained using a research model which indicated all the variables that pertained to the study which explained all the different types of cloud computing and it’s benefits for companies whose choose to use cloud-based computing in they’re environments.
What was the conclusion of the study?
This study is exploratory because it uses extant literature and the observations propose a research model depicting the relationship between the type of cloud computing and the benefit moderating by the firm size and value chain activity. There were three objectives used in this study.
- The benefit of cloud computing is higher in support activities than in primary activities.
- Large businesses that adopted SaaS gained higher benefits in the dimension of cost saving than micro-, small- and medium-sized companies did.
- Micro-businesses that adopted PaaS gained higher benefits in the dimension of enhanced business scalability than SMEs and large companies did.
Why is this study useful to you? Explain all.
This study specially pertains to me because I have worked in many Government environments that were not early adapters of cloud-based computing. In my opinion many Federal Government agencies throughout the US wait to replace, upgrade or to accept changes in technologies regardless of if they are many proven studies like this one that undoubtedly prove not only the monetary benefit but also improves the business overall frameworks which is to utilize cutting edge technologies which in turns makes all technical support peoples jobs easier and more effective.
What would be the next logical step in extending this study?
I think this study could implement data collected from the actual technical support people who are the primary ones utilizing cloud-based computing. This study primary focuses on data collected from the business management but not from the technical experts who are the ones using the new technology. In most instances the data collection will vary in its opinions whether the benefits are actually useful or not.
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Daryl,
I agree with you when you pointed out that the study can be more useful if the users that work with the technology are the ones conducting the study. It is hard for outside people who do not work with the technology daily and sees whether it is beneficial or not, or even like the study says, whether or not it is proving to have a cost reduction. It is hard for companies to want to adapt change if they are unsure if the cost is worth it in the end, especially if it is a new innovation. I think you did a great job on reviewing this study and gave important information on the process, what was being studied and your thoughts on it. I also found it interesting to learn about the different models of cloud computing. I personally would think it would be better for a startup company to adapt it early then adding it in the future.
Thank for the kind words. I also would like to add that you also write great post. I look forward to reading your next one.
Daryl,
First of all, I thought this post was a great read and very informative. Being newer to the cyber field myself, I learned a decent amount in this post. The world of cloud computing is not something I have explored much. With that being said, I was surprised about PaaS being typically more expensive for smaller companies. I have also worked for the federal government for the majority of my career. I am only the military side though and I do not see them adopting many of these platforms in the near future. I do agree that those who work with the systems on a regular basis need to weigh in on the decision making. It only makes sense that they would have good insight and think about the decision in different ways than just cost. For example, the hours the techs spend working on the old system and are saved by not having to work on the cloud based systems could potentially earn back the added expense.
I think your assessment is accurate. I appreciate your ending statement about how data varies depending on the group asked.
Reading your review makes me curious. I wonder what kind of systems the businesses were using before they switched to the cloud. I wonder if the health crisis has led to a significant rise in businesses switching to cloud computing and if businesses have failed during the crisis that might have survived if they had switched to cloud-computing. This is thought-provoking. Great post!