Cloud computing adoption: an empirical study of customer preferences among start-up companies

Cloud computing represents a paradigm shift to utmost scalable and flexible IT services. However, research related to preferences of certain customers concerning cloud services is scarce. Especially start-up companies with their limited capacities to implement and operate IT infrastructure and their great demand for scalable and affordable IT resources are predestined as customers of cloud based services. In this study, we apply a multi-method approach to investigate customer preferences among start-up companies. Based on a literature review and a market analysis of cloud service models, we propose a set of cloud provider characteristics. These properties were examined among 108 start-up companies and analyzed in three steps using factor analysis to define customer preferences, cluster analysis to identify customer segments and discriminant analysis to validate the identified clusters. The results show that start-ups can be basically divided in five clusters each with certain requirements on cloud provider characteristics.