When traditional information technology project managers encounter the cloud: Opportunities and dilemmas in the transition to cloud services

• Examination of IT project manager perceptions of cloud computing
• Key opportunities and dilemmas identified and variables used in causal loop diagrams
• More experienced IT project managers see opportunities and dilemmas differently.
• Key dilemmas require risk management and interpersonal skills to manage effectively.
• System dynamics model developed

Cloud computing has rapidly changed the conventional way information technology (IT) products and services are delivered. This study aims to identify the opportunities and dilemmas IT project managers are encountering in managing cloud projects, and to develop a system dynamics model to capture the complexity of cloud adoption. A questionnaire survey was conducted among IT project managers and data were analyzed via T-Tests, ANOVA, and principal component analysis. The identified opportunities and dilemmas in adopting cloud services formed the elements in the system dynamics model. Findings revealed incorporating cloud services in IT projects could shorten project timeline, optimize project scope, and reduce project cost. However, project managers also expressed concern about data privacy, security, IT governance, and local regulation when moving services to the cloud. Incorporation of proper change management plan and detailed risk management plan are required to identify the privacy and regulatory concerns.