What are the hidden costs drivers of cloud migrations at corporate banks?

Abstract

Cloud computing is the fastest growing part of the IT industry and is a solution to effectively man- age data. Cloud computing is an evolved form of traditional IT outsourcing and it has been identified that hidden cost is the largest bottleneck of IT outsourcing. In this research, hidden cost drivers at ten cloud migrations projects in the banking industry are examined. Hidden costs drivers during cloud migrations exist, and are a combination of tangible and intangible drivers. Findings of tangible hidden costs drivers are: managing dependencies, legislation, support from other departments, re-architect, and external contractors, internal resources, cloud training, cloud migration team and third party services. Intangible hidden costs drivers of a cloud migration are: business case construction, business continuity, cloud acceptance, cloud vendor, cost control, knowledge gap cloud, legacy applications, network, on-premise, retention, security and strategy.