Assessing the Relationships among Cloud Adoption, Strategic Alignment and It Effectiveness

Against the backdrop of new economic realities, one of the larger forces that is affecting businesses worldwide is cloud computing, whose benefits include agility, time to market, time to capability, reduced cost, etc. The intent of this research was to contribute to the body of knowledge that could be applied by researchers, businesses, and IT organizations alike to achieve optimal results through the adoption of cloud based services and solutions. The study findings provided statistical evidence that cloud adoption (CA) has a very strong positive correlation on IT effectiveness (ITE) and its relationship is much higher than the relationship of strategic alignment (SA) on ITE or the combination of CA and SA as interaction term (CA x SA). The new knowledge gained from the benefits of cloud adoption on IT effectiveness would enhance the decision-making process for IT managers when considering the adoption of cloud technologies and its business models.