Effect Of Cloud Computing Environment On Total Cost Of Ownership; A Case Of Internet Service Providers (Safaricom And Access Kenya)

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.