Deloitte - Development of a decision model between Cloud vs. On-premise Software in consideration of migration-, running costs, security aspects and vendor dependencies etc.

Description of the company

Deloitte has more than 289,000 professionals at member firms delivering services in audit & assurance, tax, consulting, financial advisory, risk advisory and related services in more than 150 countries and territories. Revenues for fiscal year 2017 were US$38.8 billion. In our global business environment, the risk of cyber-attacks is increasing. Therefore, Deloitte Cyber Risk helps organizations to address these threats, minimizing risk while optimizing new business opportunities.


In recent years, IT has become increasingly important in companies in order to simplify and accelerate business processes. As cloud solutions have become more widespread, many companies are now looking at what exactly is the difference between cloud and on-premise IT and whether IT solutions should come from the cloud or be purchased and operated as on-premise software.

With the on-premise solution, the respective software is installed on a server in the own company. The purchase of the corresponding hardware is the responsibility of the company itself. The company should have its own IT department and specialist staff to manage the data center.

Cloud computing refers to the provision and use of IT infrastructure such as storage space, computing power or software via the Internet. The idea behind this is to make these IT infrastructures available via a computer networks, so that they do not have to be installed on local computers. The provision and use of the relevant IT services takes place through technical interfaces and protocols as well as client software. This enables users to access data from any location and to collaborate with colleagues and/or partners without limits.

The decision making process is often influenced by various factors and often driven by costs.     


  • There are multiple offerings at the market not only on-premise but also for the cloud.
  • The IT and procurement department need to make strategic decisions on a solid basis which does not exist about the total cost of ownership.
  • There are migration costs for existing applications.
  • The customer also needs to base the decision in consideration of risk factors like security and data confidentiality.
  • No clear monitoring of the usage is present within organizations that have an impact on costs.
  • By outsourcing the IT department from the company, the company is bound to the responsible provider. The company is dependent on the service and the capacities provided by the provider.
  • Decisions are often made on short-term monetary costs but not the overall long-term costs throughout the lifecycle. 

Aims of the project

A model should be developed systematically, which shows the cost impact and risks on companies before making the decision on moving to the cloud considering the whole life cycle.       


  • What are the different models at the market and what is the market demanding?
  • What is the total costs of ownership for a specific application?
  • What is the overall costs if an application needs to get migrated?
  • How important is the security and data security factor for the decision making and what impact does it have on the costs?
  • How dependent is a company from a cloud provider?
  • How can a decision model between cloud vs. on-premise be created with all the factors above.


Target group (students)

All students studying Bachelor or Master with a strong IT, Risk and Economics focus.


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