Cloud Enterprise Application Provider Selection Model for the Small and Medium Enterprise: A Pilot Study
Enterprise Applications (EAs) aid the organizations achieve operational excellence and competitive advantage. Over time, most Small and Medium Enterprises (SMEs), which are known to be the major drivers of most thriving global economies, use the costly on-premise versions of these applications thereby making business difficult to competitively thrive in the same market environment with their large enterprise counterparts. The advent of cloud computing presents the SMEs an affordable offer and great opportunities as such EAs can be cloud-hosted and rented on a pay-per-use basis which does not require huge initial capital. However, as there are numerous Cloud Service Providers (CSPs) offering EAs as Software-as-a-Service (SaaS), there is a challenge of choosing a suitable provider with Quality of Service (QoS) that meet the organizations’ customized requirements. The proposed model takes care of that and goes a step further to select the most affordable among a selected few of the CSPs. In the earlier stage, before developing the instrument and conducting the pilot test, the researchers conducted a structured interview with three experts to validate the proposed model. In conclusion, the validity and reliability of the instrument were tested through experts, typical respondents, and analyzed with SPSS 22. Results confirmed the validity of the proposed model and the validity and reliability of the instrument.
[1] H. Plattner and A. Zeier, “In-memory of Data Management, Technology and Applications”, Springer-Verlag Berlin Heidelberg, 2nd Edition, 2012, pp. 99 Illus., Hardcover. DOI: 10.1007/978-3-642-29575-1_2, @ Springer-Verlag Berlin Heidelberg.
[2] F. Scavo, B. Newton and M. Longwell, “Choosing Between Cloud and Hosted ERP, and Why it Matters”, Computer Economics Report, Vol. 34, No. 8, 2012.
[3] H. Vandit, M. C. Alok, C. Nilotpal, “Cloud Based ERP for Small and Medium Scale Enterprises”, International Journal of Engineering Research & Technology (IJERT), Vol. 2, Issue 11, Nov., 2013.
[4] M. Haddara, “ERP Adoption Cost Factors in SMEs”, In Proceedings of the European, Mediterranean & Middle Eastern Conference on Information Systems, 2011.
[5] A. Azarnik, J. Shayan, M. Alizadeh, S. Karamizadeh, “Associated Risks of Cloud Computing for SMEs”, Open Int’l Journal of Informatics, Vol 1, 2012, pp 37 – 45.
[6] S. Monika, M. Ashwani, J. Haresh, K. Anand, M. Madhvendra and T. Vijayshri, “Scope of Cloud Computing for SMEs in India”, Journal of Computing, Volume 2, Issue 5, May 2010, ISSN 2151-9617.
[7] A. Lin and N. C. Chen, “Cloud Computing as an Innovation: Perception, Attitude, and Adoption”, Inter-national Journal of Information Management, Vol. 4 No.1, 2012.
[8] I. I. Ivanov, “Cloud Computing in Education: The Intersection of Challenges and Opportunities”, Web Information Systems and Technologies (101:1), 2012, pp 3 – 16.
[9] K. Giannakouris and M. Smihily, “EUROSTAT, 2014 Cloud Computing – Statistics on the Use by Enterprises”, (online). From: http://ec.europa.eu/eurostat/statistics-explained/index.php/Cloud_computing_-_statistics_on_the_use_by_enterprises.
[10] S. K. Garg, S. Versteeg and R. Buyya, “A Framework for Ranking Cloud Computing Services”, Future Generation Computer Systems, 29, 2013, pp. 1012 – 1023.
[11] N. Kumar and S. Agarwal, “QoS based Cloud Service Provider Selection Framework”, Research Journal of Recent Sciences, vol. 3 (IVC-2014), pp. 7-12.
[12] S. Qibo, W. Shangguang, Z. Hua and Y. Fangchun, “QSSA: A QoS-aware Service Selection Approach”. International Journal of Web and Grid Services. Volume 7, Issue 2, May 2011, pp. 147-169.
[13] S. K. Garg, S. Versteeg and R. Buyya, “SMICloud: A Framework for Comparing and Ranking Cloud Services”, In proc: Fourth IEEE International Conference on Utility and Cloud Computing, 2011, pp 210 – 218.
[14] V. Balali, B. Zahraie, A. Hosseni, A. Roozbahani, “Selecting Appropriate Structural System: Application of PROMETHEE Decision Making Method”, In pro: of the 2nd Int’l Conference on Engineering Systems Management & Applications (ICESMA), Sharjah, UAE, 2010, pp. 1-6.
[15] H. Mouratidisa, S. Islama, C. Kalloniatis, and S. Gritzalis, “A Framework to Support Selection of Cloud Providers Based on Security and Privacy Requirements”, The Journal of Systems and Software, 86, 2013, pp. 2276– 2293.
[16] M. Ouedraogo, and H. Mouratidis, “Selecting a Cloud Service Provider in the Age of Cybercrime”, Computer & Security, 38, 2013, pp 3–13
[17] T. Oliveira and M.F. Martins, “Understanding E-business Adoption Across Industries in European Countries”, Industrial Management & Data Systems, 110(9), 2010, pp. 1337-1354.
[18] H. S. Kilic, S. Zaim and D. Delen, “Selecting “The Best” ERP Systems for SMEs Using a Combination of ANP and PROMETHEE Methods”, Expert Systems with Applications, 42, 2015, pp 2343 – 2352.
[19] C-T. Lin, C-B. Chen and Y-C. Ting, “An ERP Model for Supplier Selection in Electronic Industry”, Expert Systems with Applications, 38, 2011, pp 1760 – 1765.
[20] C. Marian, D. Eileen and C. Gerard, “The Adoption of Cloud Computing by Irish SMEs – an Exploratory Study”, The Electronic Journal Information Systems Evaluation, Volume 16, Issue 4, 2013, pp 258- 269.
[21] K. Nabeel and A. Adil, “Framework for Cloud Computing Adoption: A Roadmap for SMEs to Cloud Migration”, International Journal on Cloud Computing: Services and Architecture (IJCCSA), Vol. 5, No. 5/6, December 2015.
[22] H. S. Kilic, S. Zaim and D. Delen, “Development of a Hybrid Methodology for ERP System Selection: The Case of Turkish Airlines”, Decision Support Systems, 66, 2014, Pp 82 – 92.
[23] M. Tajvidi, R. Ranjan, J. Kolodziej and L. Wang, “Fuzzy Cloud Service Selection Framework”, In proc. of IEEE 3rd International Conference on Cloud Networking (CloudNet), 2014, pp. 463 – 469.
[24] C-K. Ke, Z-H. Lin, M-Y. Wu, S-F. Chang, “An Optimal Selection Approach for a Multi-tenancy Service Based on a SLA Utility”, Int’l Symposium on Computer, Consumer and Control (IS3C), 2012.
[25] G. Baranwal and D. P. Vidyarthi, “A Framework for Selection of Best Cloud Service Provider Using Ranked Voting Method”, In proc: IEEE International Advance Computing Conference (IACC), 2014, pp 831–838.
[26] H. Wu, D. Ye, S. Liu, Y. Yang and L. Bai, “A Service Selection Approach in Cloud Manufacturing for SMEs, Enterprise Interoperability VI”, Proceedings of the I-ESA Conferences, Vol. 7, 2014, pp. 333-343.
[27] R. R. Ogunrinde, Y. J. Yusmadi, C. P. Noraini, W. N. Rahman, A. Azizol, “Cloud Enterprise Resource Planning Selection Model for Small and Medium Enterprises”, Advanced Science Letters, 22(8), August 2016, pp 1939-1943.
[28] F. Tahriri, M. R. Osman, A. Ali, R. M. Yusuff and A. Esfandiary, “AHP Approach for Supplier Evaluation and Selection in a Steel Manufacturing Company”, Journal of Industrial Engineering and Management, 1(2), 2008, pp. 54-76.
[29] D.S. Verma and A. Pateriya, “Supplier Selection Through Analytical Hierarchy Process: A Case Study In Small Scale Manufacturing Organization”, International Journal of Engineering Trends and Technology, 4(5), 2013, pp. 1428-1433.
[30] J. Yang and H. Lee, “An AHP Decision Model for Facility Location Selection”, Facilities, 15(9/10), 1997, pp 241–254.
[31] P. Alberto, “The Logistics of Industrial Location Decisions: An Application of the Analytic Hierarchy Process Methodology”, International Journal of Logistics: Research and Applications, 3(3), 2000, pp 273–289.
[32] W. Y. Wu, H. A. Shih and H. C, “The Analytic Network Process For Partner Selection Criteria In Strategic Alliances”, Expert Systems with Applications, 36(3), 2009, pp 4646–4653.
[33] K. Eylem and A. B. Hasan, “An Application of AHP in a Real World Problem of Store Location Selection”, Advances in Management & Applied Economics, vol. 5, no.1, 2015, pp 41-50.
[34] C. Macharis, A. Verbeke, K. De Brucker, “The Strategic Evaluation of New Technologies Through Multicriteria Analysis: The Advisors Case”, Research in Transportation Economics, 8, 2004, pp 443-462.
[35] J. P. Brans, “Linbeniere de la Decision. Elaboration Dinstrumens Daide a la Decision, Methode PROMETHEE”, In: Nadeau, R, Landry, M (Eds.), Laide a la Decision: Nature, Instruments et Perspectives Davenir., de Universite Laval, Quebec, Canada, 1982, pp. 183-214.
[36] B. Yilmaz and M. Dagdeviren, “A Combined Approach for Equipment Selection: F-PROMETHEE Method and Zero-one Goal Programming”, Expert Systems with Applications, 38(9), 2011, pp. 11641-11650.
[37] F. Braithwaite & M. Woodman, “Success dimensions in selecting cloud software services”, In proc. of 37th EUROMICRO Conf. on Software Engineering and Advanced Applications, 2011A, pp.146 – 154.
[38] R. Vetschera and A.T. Almeida, “A PROMETHEE-based Approach to Portfolio Selection Problems”, Computers and Operations Research, 39(5), 2012, pp 1010-1020.
[39] S. Isaac & W.B. Michael, “Handbook in research and evaluation”, San Diego, CA: Educational & Industrial Testing Services, 1995
[40] R. Hill, “What Sample Size is “Enough” in Internet Survey Research?” Interpersonal Computing and Technology: An Electronic Journal for the 21st Century, 6(3-4). Retrieved July 12, 2008, from http://www.emoderators.com/ipct-j/1998/n3-4/hill.html.
[41] G. Van Belle, “Statistical Rules of Thumb”, New York: John Wiley, 2002.
[42] N. K. Malhotra, “Essentials of Marketing: An Applied Orientation” Australia: Pearson Education Miller, C.D., (2nd ed.), 1991. Handbook of research design and social measurement. Newbury Park, California: Sage publications, 2008.
[43] K. A. Bollen, “Structural Equations with Latent Variables”, John Wiley & Sons, 1989, pp. 179-225.
[44] U. Sekaran & R., Bougie, “Research Methods For Business: A Skill Building Approach”, Chichester: John Willey & Sons Ltd, 5th ed., 2010.
[1] H. Plattner and A. Zeier, “In-memory of Data Management, Technology and Applications”, Springer-Verlag Berlin Heidelberg, 2nd Edition, 2012, pp. 99 Illus., Hardcover. DOI: 10.1007/978-3-642-29575-1_2, @ Springer-Verlag Berlin Heidelberg.
[2] F. Scavo, B. Newton and M. Longwell, “Choosing Between Cloud and Hosted ERP, and Why it Matters”, Computer Economics Report, Vol. 34, No. 8, 2012.
[3] H. Vandit, M. C. Alok, C. Nilotpal, “Cloud Based ERP for Small and Medium Scale Enterprises”, International Journal of Engineering Research & Technology (IJERT), Vol. 2, Issue 11, Nov., 2013.
[4] M. Haddara, “ERP Adoption Cost Factors in SMEs”, In Proceedings of the European, Mediterranean & Middle Eastern Conference on Information Systems, 2011.
[5] A. Azarnik, J. Shayan, M. Alizadeh, S. Karamizadeh, “Associated Risks of Cloud Computing for SMEs”, Open Int’l Journal of Informatics, Vol 1, 2012, pp 37 – 45.
[6] S. Monika, M. Ashwani, J. Haresh, K. Anand, M. Madhvendra and T. Vijayshri, “Scope of Cloud Computing for SMEs in India”, Journal of Computing, Volume 2, Issue 5, May 2010, ISSN 2151-9617.
[7] A. Lin and N. C. Chen, “Cloud Computing as an Innovation: Perception, Attitude, and Adoption”, Inter-national Journal of Information Management, Vol. 4 No.1, 2012.
[8] I. I. Ivanov, “Cloud Computing in Education: The Intersection of Challenges and Opportunities”, Web Information Systems and Technologies (101:1), 2012, pp 3 – 16.
[9] K. Giannakouris and M. Smihily, “EUROSTAT, 2014 Cloud Computing – Statistics on the Use by Enterprises”, (online). From: http://ec.europa.eu/eurostat/statistics-explained/index.php/Cloud_computing_-_statistics_on_the_use_by_enterprises.
[10] S. K. Garg, S. Versteeg and R. Buyya, “A Framework for Ranking Cloud Computing Services”, Future Generation Computer Systems, 29, 2013, pp. 1012 – 1023.
[11] N. Kumar and S. Agarwal, “QoS based Cloud Service Provider Selection Framework”, Research Journal of Recent Sciences, vol. 3 (IVC-2014), pp. 7-12.
[12] S. Qibo, W. Shangguang, Z. Hua and Y. Fangchun, “QSSA: A QoS-aware Service Selection Approach”. International Journal of Web and Grid Services. Volume 7, Issue 2, May 2011, pp. 147-169.
[13] S. K. Garg, S. Versteeg and R. Buyya, “SMICloud: A Framework for Comparing and Ranking Cloud Services”, In proc: Fourth IEEE International Conference on Utility and Cloud Computing, 2011, pp 210 – 218.
[14] V. Balali, B. Zahraie, A. Hosseni, A. Roozbahani, “Selecting Appropriate Structural System: Application of PROMETHEE Decision Making Method”, In pro: of the 2nd Int’l Conference on Engineering Systems Management & Applications (ICESMA), Sharjah, UAE, 2010, pp. 1-6.
[15] H. Mouratidisa, S. Islama, C. Kalloniatis, and S. Gritzalis, “A Framework to Support Selection of Cloud Providers Based on Security and Privacy Requirements”, The Journal of Systems and Software, 86, 2013, pp. 2276– 2293.
[16] M. Ouedraogo, and H. Mouratidis, “Selecting a Cloud Service Provider in the Age of Cybercrime”, Computer & Security, 38, 2013, pp 3–13
[17] T. Oliveira and M.F. Martins, “Understanding E-business Adoption Across Industries in European Countries”, Industrial Management & Data Systems, 110(9), 2010, pp. 1337-1354.
[18] H. S. Kilic, S. Zaim and D. Delen, “Selecting “The Best” ERP Systems for SMEs Using a Combination of ANP and PROMETHEE Methods”, Expert Systems with Applications, 42, 2015, pp 2343 – 2352.
[19] C-T. Lin, C-B. Chen and Y-C. Ting, “An ERP Model for Supplier Selection in Electronic Industry”, Expert Systems with Applications, 38, 2011, pp 1760 – 1765.
[20] C. Marian, D. Eileen and C. Gerard, “The Adoption of Cloud Computing by Irish SMEs – an Exploratory Study”, The Electronic Journal Information Systems Evaluation, Volume 16, Issue 4, 2013, pp 258- 269.
[21] K. Nabeel and A. Adil, “Framework for Cloud Computing Adoption: A Roadmap for SMEs to Cloud Migration”, International Journal on Cloud Computing: Services and Architecture (IJCCSA), Vol. 5, No. 5/6, December 2015.
[22] H. S. Kilic, S. Zaim and D. Delen, “Development of a Hybrid Methodology for ERP System Selection: The Case of Turkish Airlines”, Decision Support Systems, 66, 2014, Pp 82 – 92.
[23] M. Tajvidi, R. Ranjan, J. Kolodziej and L. Wang, “Fuzzy Cloud Service Selection Framework”, In proc. of IEEE 3rd International Conference on Cloud Networking (CloudNet), 2014, pp. 463 – 469.
[24] C-K. Ke, Z-H. Lin, M-Y. Wu, S-F. Chang, “An Optimal Selection Approach for a Multi-tenancy Service Based on a SLA Utility”, Int’l Symposium on Computer, Consumer and Control (IS3C), 2012.
[25] G. Baranwal and D. P. Vidyarthi, “A Framework for Selection of Best Cloud Service Provider Using Ranked Voting Method”, In proc: IEEE International Advance Computing Conference (IACC), 2014, pp 831–838.
[26] H. Wu, D. Ye, S. Liu, Y. Yang and L. Bai, “A Service Selection Approach in Cloud Manufacturing for SMEs, Enterprise Interoperability VI”, Proceedings of the I-ESA Conferences, Vol. 7, 2014, pp. 333-343.
[27] R. R. Ogunrinde, Y. J. Yusmadi, C. P. Noraini, W. N. Rahman, A. Azizol, “Cloud Enterprise Resource Planning Selection Model for Small and Medium Enterprises”, Advanced Science Letters, 22(8), August 2016, pp 1939-1943.
[28] F. Tahriri, M. R. Osman, A. Ali, R. M. Yusuff and A. Esfandiary, “AHP Approach for Supplier Evaluation and Selection in a Steel Manufacturing Company”, Journal of Industrial Engineering and Management, 1(2), 2008, pp. 54-76.
[29] D.S. Verma and A. Pateriya, “Supplier Selection Through Analytical Hierarchy Process: A Case Study In Small Scale Manufacturing Organization”, International Journal of Engineering Trends and Technology, 4(5), 2013, pp. 1428-1433.
[30] J. Yang and H. Lee, “An AHP Decision Model for Facility Location Selection”, Facilities, 15(9/10), 1997, pp 241–254.
[31] P. Alberto, “The Logistics of Industrial Location Decisions: An Application of the Analytic Hierarchy Process Methodology”, International Journal of Logistics: Research and Applications, 3(3), 2000, pp 273–289.
[32] W. Y. Wu, H. A. Shih and H. C, “The Analytic Network Process For Partner Selection Criteria In Strategic Alliances”, Expert Systems with Applications, 36(3), 2009, pp 4646–4653.
[33] K. Eylem and A. B. Hasan, “An Application of AHP in a Real World Problem of Store Location Selection”, Advances in Management & Applied Economics, vol. 5, no.1, 2015, pp 41-50.
[34] C. Macharis, A. Verbeke, K. De Brucker, “The Strategic Evaluation of New Technologies Through Multicriteria Analysis: The Advisors Case”, Research in Transportation Economics, 8, 2004, pp 443-462.
[35] J. P. Brans, “Linbeniere de la Decision. Elaboration Dinstrumens Daide a la Decision, Methode PROMETHEE”, In: Nadeau, R, Landry, M (Eds.), Laide a la Decision: Nature, Instruments et Perspectives Davenir., de Universite Laval, Quebec, Canada, 1982, pp. 183-214.
[36] B. Yilmaz and M. Dagdeviren, “A Combined Approach for Equipment Selection: F-PROMETHEE Method and Zero-one Goal Programming”, Expert Systems with Applications, 38(9), 2011, pp. 11641-11650.
[37] F. Braithwaite & M. Woodman, “Success dimensions in selecting cloud software services”, In proc. of 37th EUROMICRO Conf. on Software Engineering and Advanced Applications, 2011A, pp.146 – 154.
[38] R. Vetschera and A.T. Almeida, “A PROMETHEE-based Approach to Portfolio Selection Problems”, Computers and Operations Research, 39(5), 2012, pp 1010-1020.
[39] S. Isaac & W.B. Michael, “Handbook in research and evaluation”, San Diego, CA: Educational & Industrial Testing Services, 1995
[40] R. Hill, “What Sample Size is “Enough” in Internet Survey Research?” Interpersonal Computing and Technology: An Electronic Journal for the 21st Century, 6(3-4). Retrieved July 12, 2008, from http://www.emoderators.com/ipct-j/1998/n3-4/hill.html.
[41] G. Van Belle, “Statistical Rules of Thumb”, New York: John Wiley, 2002.
[42] N. K. Malhotra, “Essentials of Marketing: An Applied Orientation” Australia: Pearson Education Miller, C.D., (2nd ed.), 1991. Handbook of research design and social measurement. Newbury Park, California: Sage publications, 2008.
[43] K. A. Bollen, “Structural Equations with Latent Variables”, John Wiley & Sons, 1989, pp. 179-225.
[44] U. Sekaran & R., Bougie, “Research Methods For Business: A Skill Building Approach”, Chichester: John Willey & Sons Ltd, 5th ed., 2010.
@article{"International Journal of Information, Control and Computer Sciences:77951", author = "Rowland R. Ogunrinde and Yusmadi Y. Jusoh and Noraini Che Pa and Wan Nurhayati W. Rahman and Azizol B. Abdullah", title = "Cloud Enterprise Application Provider Selection Model for the Small and Medium Enterprise: A Pilot Study", abstract = "Enterprise Applications (EAs) aid the organizations achieve operational excellence and competitive advantage. Over time, most Small and Medium Enterprises (SMEs), which are known to be the major drivers of most thriving global economies, use the costly on-premise versions of these applications thereby making business difficult to competitively thrive in the same market environment with their large enterprise counterparts. The advent of cloud computing presents the SMEs an affordable offer and great opportunities as such EAs can be cloud-hosted and rented on a pay-per-use basis which does not require huge initial capital. However, as there are numerous Cloud Service Providers (CSPs) offering EAs as Software-as-a-Service (SaaS), there is a challenge of choosing a suitable provider with Quality of Service (QoS) that meet the organizations’ customized requirements. The proposed model takes care of that and goes a step further to select the most affordable among a selected few of the CSPs. In the earlier stage, before developing the instrument and conducting the pilot test, the researchers conducted a structured interview with three experts to validate the proposed model. In conclusion, the validity and reliability of the instrument were tested through experts, typical respondents, and analyzed with SPSS 22. Results confirmed the validity of the proposed model and the validity and reliability of the instrument.
", keywords = "Cloud service provider, enterprise applications, quality of service, selection criteria, small and medium enterprise.", volume = "12", number = "9", pages = "762-7", }
