The document, authored by the Costing Policies Committee and addressed to higher education leaders, provides a detailed overview of cloud computing and its implications for research activities, particularly concerning financial and administrative policy. It explains the fundamental characteristics of cloud computing, noting its on-demand, scalable, and pay-as-you-go nature, and contrasts these benefits with challenges such as reduced control over resources and potential data transfer issues. The paper delineates the various computing resource options available to researchers: on-campus resources, federally-sponsored centers, and commercial cloud services, highlighting the differing financial models and approaches to Facilities and Administrative (F&A) cost recovery within each.
A central issue identified is the complexity of properly accounting for and recovering costs associated with cloud services in grant-funded research, as current federal policies may unintentionally disincentivize cloud adoption. The document reviews potential policy responses, such as waiving F&A on cloud services or modifying how such costs are included in grant budgets. Despite recognized benefits of cloud computing for industry, university adoption remains low, possibly due to financial structures, administrative barriers, or lack of awareness. The document concludes by recommending collaboration among major university associations to conduct a comprehensive survey, seeking to gather necessary data to inform policy-making that balances the needs of researchers, institutions, and funding agencies, and to ensure efficient resource utilization in an evolving technological landscape.
