Main factors influencing companies to advocate for On-Premises systems in the era of Cloud Technology dominance

Abstract

Skafi, Yunis and Zekri (2017) exemplified the increased usage of cloud computing adoption in organizations worldwide which highlighted the significance of examining the aspects that might have impact on the adoption of this computing paradigm in companies operating in different industries and sectors. Younus et al (2024) illustrated that the cloud is a more popular aromatic buzzword in the IT world which had revolutionized the approach for company’s businesses. It was well agreed upon by the researchers that cloud computing service models have significant effect on achieving cost efficiency and better payoffs and return on investments in information technologies and systems. However, this computing model is still relatively recent and represents a low fraction of the total Information Technology (IT) invested, even if it is growing at a faster pace compared to traditional computing models (Skafi, Yunis and Zekri, 2017).

The main aim of the study was to conduct a theoretical and a practical study on the factors effect on the decision of adopting on premise computing by the IT organizations in Sri Lanka. Moreover, the study pro-vided a comparative analysis of the factors for On-Premises and Cloud computing thus the respective effect of each factor on the decision for on premise computing. Moreover, this provided practical recommendations were proposed to address and mitigate the impact of the most influential factor driving the preference for on-premises IT systems in Sri Lanka IT companies.

With the usage of 73 sample participants from the IT companies in Western province of Sri Lanka, prima-ry data was collected. A qualitative plus a quantitative analysis were performed as per the data analysis. Results as per the correlation analysis, security, performance governance/compliance depicted a positive relationship with decision for on-premises computing where cost, scalability and downtime/high availability showed a negative relationship with decision for on-premises computing. Statistical analysis was confirmed, ‘security’ factor as the most influential factor on the decision on on-premises computing. Recommending that IT companies can undertake the right cloud architecture, adhere to the robust security controls while maintaining compliance with industry-specific regulations, such IT companies can adapt cloud computing with greater degree of security.