Economics of the cloud computing

Cloud computing has its root deep into ground and in the market. The evolution of cloud computing is one of the major advances in the computing area as well as in economics of using computing. There are three major technologies which represent cloud computing: Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (Iaas). In our example we discuss pros and cons of implementing PaaS or SaaS. While there are quite a few papers covering technical aspects of cloud computing technologies, this paper will have focus on economics of the cloud. In this paper we will try to explain which criteria should be considered when deciding to move or not to move to cloud. There is also general view on Return on Investment shown which takes into account various intangible impacts of cloud computing, apart from cost. These impacts include better flexibility, scalability and faster time to market.