Do Clouds Compute? A Framework for Estimating the Value of Cloud Computing

  • Markus Klems
  • Jens Nimis
  • Stefan Tai
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 22)


On-demand provisioning of scalable and reliable compute services, along with a cost model that charges consumers based on actual service usage, has been an objective in distributed computing research and industry for a while. Cloud Computing promises to deliver on this objective: consumers are able to rent infrastructure in the Cloud as needed, deploy applications and store data, and access them via Web protocols on a pay-per-use basis. The acceptance of Cloud Computing, however, depends on the ability for Cloud Computing providers and consumers to implement a model for business value co-creation. Therefore, a systematic approach to measure costs and benefits of Cloud Computing is needed. In this paper, we discuss the need for valuation of Cloud Computing, identify key components, and structure these components in a framework. The framework assists decision makers in estimating Cloud Computing costs and to compare these costs to conventional IT solutions. We demonstrate by means of representative use cases how our framework can be applied to real world scenarios.


Cloud Computing Utility Computing Grid Computing Valuation TCO 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  • Markus Klems
    • 1
  • Jens Nimis
    • 1
  • Stefan Tai
    • 1
  1. 1.Forschungszentrum Informatik (FZI)KarlsruheGermany

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