Abstract:
Cloud computing plays a crucial role when addressing the concept of data storage and
determining total cost of ownership in organizations. It is a multi-billion money investment
which organizations can tap in and achieve the objectives of their formation. The purpose of
the research study was to assess the effect of cloud computing environment on total cost of
ownership among the Internet Service Providers focusing Safaricom and Access Kenya. The
objectives of the study were to assess the effect of cloud computing on acquisition costs of
computer accessories; sought to establish the usefulness of cloud computing models to the
organization; assessed the effect of cloud computing on infrastructure support costs and to
establish the challenges associated with organizations in accessing cloud computing. The
study was based on a descriptive design. The target population was 107 employees who
included the CIOs, technicians and network users from Safaricom and Access Kenya.
Primary data was collected using semi-structured questionnaires. Data was analyzed using
descriptive statistics which included frequency counts and percentages. The findings of the
study showed that cloud computing can be used to curb cost in organizations. The adoption
of cloud computing environment in Safaricom and Access Kenya can reduce server,
configuration and upgrade costs. With regards to usefulness to organization, scalability,
reduction of complexities, availability, virtualization and usability were the main benefits that
can be achieved. Infrastructure in relation to cost indicated some level of significance having
reduction in WAN, structured cabling, data transfer as well as network performance
improvement. The major challenges associated with cloud environment included possibility
of forgery, security issues, and insufficient bandwidth, managing risks associated with
privacy and personal rights. The study recommends that cloud computing should be
embraced to reduce hidden costs of computer outrights in organization within ISP industry.
