Adoption of Cloud Computing in Organizations

Cloud Computing is gaining popularity as a new IT arrangement in organizations, offering many advantages such as cost reduction and high flexibility that help in coping with high elasticity of demand. This study investigates organization‟s propensity to adopt Cloud computing services. The decision is viewed as an IT outsourcing decision and as a technology adoption decision through three theoretical perspectives: Transaction cost theory, resource dependence theory and diffusion of innovation theory. Based on these theories, a conceptual model is proposed with research hypotheses for future empirical testing. The study makes an attempt to contribute to the emerging literature of cloud computing, in addition to offering organizations considering adoption a list of benefits and risks of adopting cloud computing.