Transformation Potential of Cloud Computing - Understanding Strategic Value Creation from Customer and Vendor Perspectives.

Abstract

While Cloud Computing is evolving as a major information technology phenomenon by redefining how IT capabilities are generated and consumed, the business value of this emerging model of IT capabilities delivery is anecdotal. Limited empirical research exists to my knowledge on what and how business value is created from these technologies. My dissertation devises three empirical studies to systematically investigate the business value of cloud computing technologies from the customer and vendor perspectives. In particular, I examine the transformation potential of these technologies in delivering strategic benefits that transcend beyond mere cost advantages often cited in practitioner literature. From the customer perspective, I investigate the strategic benefits these technologies create towards organizational and individual role effectiveness. In one study, I examine at the organizational level if adopting these technologies can be associated with the IT-enabled business innovation of the firms. At the individual role level investigated in another study, I examine the association between cloud computing adoption and the involvement of Chief Information Officers in strategic opportunities related to innovation and new product development. From the vendor perspective, I examine in my third study, the implications of cloud computing architectures for the vendor organizations. I attempt to understand what changes in the technical and organizational functions are needed in the vendor organizations to reorient themselves to create the expected business value and succeed in the cloud computing market. Through these three empirical studies, my dissertation is a systematic attempt to shed light on the strategic business benefits of cloud computing and the enablers of value creation in the cloud-based technology model.