Cloud computing carries the promise of powerful models and abstractions that could transform the way IT services are delivered today. While the cloud's economic model has been argued to provide cost benefits compared to traditional in-house IT delivery, it remains to be seen how this argument changes for different business applications and environments. In this paper, we develop a framework for exploring the factors that influence IT delivery cost within an organization compared to the cost of using the cloud. We then apply the framework to develop insight on the economics of migrating to the cloud from the perspective of users in emerging markets. We find that emerging markets have different characteristics from established economies that result in different barriers and benefits realized from using the cloud.
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