Factors limiting adoption of new technology : a study of drawbacks affecting transition from on-premise systems to cloud computing

Abstract: Cloud computing has grown from being a business concept to one of the fastest growing segments of modern ICT industry. Cloud computing are addressing many issues emerged by the globalization in terms of the ever faster pace of growth, shorter product life cycles, increased complexity of systems and higher investment needs. Cloud computing is enetrating all sectors of business applications and has influenced the whole IT industry. The business model has grown to be an alternative to traditional on-premise systems, where traditional environment, applications and additional IT infrastructure is maintained in-house within the organization. However, organizations are still reluctant to deploy their business in the cloud. There are many concerns regarding cloud computing services and despite all its advantages, cloud adoption is still very low at an organizational landscape. Hence, this master thesis aims to investigate what the drawbacks regarding a transition from an on-premise system to a cloud computing service are and how these relate to factors that influence the decision of adoption. Furthermore, this study will investigate how cloud service providers can develop a pro-active approach to manage the main drawbacks of cloud adoption. In order to fulfill the aim of the study, empirical research in form of data collection of  onducted interviews were carried out. The results of the study identified security and perceived loss of control as the main drawbacks in the transition from an on-premise system to a cloud computing service. Since these findings could be described as foremost technological and attitudinal, the thesis contributes to practitioners in terms of implications of communicating and educating customers and adherence to industry standards and certifications as important factors to address. Lastly, this thesis identified lack of understanding for cloud computing as a result of poor information, indicating for further research within this area.