Information security processes and systems are relevant for any organization and involve medium-to-high investment; however, the current economic downturn is causing a dramatic reduction in spending on Information Technology (IT). Cloud computing (i.e., externalization of one or more IT services) might be a solution for organizations keen to maintain a good level of security. In this paper we discuss whether cloud computing is a valid alternative to in-house security processes and systems drawing on four mini-case studies of higher education institutions in New England, US. Our findings show that the organization’s IT spending capacity affects the choice to move to the cloud; however, the perceived security of the cloud and the perceived in-house capacity to provide high quality IT (and security) services moderate this relationship. Moreover, other variables such as (low) quality of technical support, relatively incomplete contracts, poor defined Service License Agreements (SLA), and ambiguities over data ownership affect the choice to outsource IT (and security) using the cloud. We suggest that, while cloud computing could be a useful means of IT outsourcing, there needs to be a number of changes and improvements to how the service is currently delivered
