Document Type


Publication Date

Spring 2022


Liliya Hogaboam

Course Title

Advanced Engineering Economics

Course Number

ETM 535/635


Analyzing the economic viability of using cloud computing services within an organization is an important aspect for business today. Significant cost savings can be obtained through selecting the best net benefit alternative between the defender and multiple challengers of business technology systems being considered. A simple definition of cloud computing is the use of software systems and storage accessed through the Internet. Traditionally, these services are managed and provided from in-house, on-site systems. There are several cloud computing service providers to choose from. This study provides an economic comparison between on-site, Amazon Web Services, and the Google Cloud Platform. This analysis uses present worth, and the minimum attractive rate of return using a five (5) year time-frame. A benefit-cost analysis is provided to determine if the efficiency ratios warrant viability of each alternative. An incremental analysis follows, using each viable alternative to find the best option that provides the highest net benefit to the firm. Outcomes from this methodology will vary depending on the specifics of the alternatives being examined. In this example scenario, a fully remote, cloud computing based company is the recommended strategy to pursue.


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