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Cloud economics is the study of the benefits, costs, and principles of cloud computing. It involves understanding the total cost of ownership (TCO) of cloud computing, the benefits of the cloud over on-premises models, and cost optimization strategies that will maximize ROI on your cloud investment.
Cloud economics involves two primary principles: economies of scale and global reach. Through economies of scale, cloud providers save organizations money because they purchase computing resources in massive quantities at lower costs.
A cloud economics analysis weighs financial factors such as return on investment (ROI), legacy hardware investment, and the total cost of ownership (TCO) for the cloud versus on-premises data centers.
There are four evaluating theory for adopting the cloud computing technology which are the Technology Organization Environment (TOE), the Technology Acceptance Model (TAM), the Diffusion of Innovation (DOI), and the Institutional (INT).
Some theories say financial factors cause recessions. These theories focus on credit growth and the accumulation of financial risks during good economic times, the contraction of credit and money supply when recession starts, or both.

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