Cloud Computing: How does it differ from IT outsourcing and what are the implications for practice and research?

Abstract

Abstract. The purpose of this paper is to provide an evolutionary perspective of cloud computing (CC) by integrating two previously disparate literatures: CC and information technology outsourcing (ITO). We review the literature and develop a framework that highlights the demand for the CC service, benefits, risks, as well as risk mitigation strategies that are likely to influence the success of the service. CC success in organisations and as a technology overall is a function of (i) the outsourcing decision and supplier selection, (ii) contractual and relational governance, and (iii) industry standards and legal framework. Whereas CC clients have little control over standards and/or the legal framework, they are able to influence other factors to maximize the benefits while limiting the risks. This paper provides guidelines for (potential) cloud computing users with respect to the outsourcing decision, vendor selection, service-level-agreements, and other issues that need to be addressed when opting for CC services. We contribute to the literature by providing an evolutionary and holistic view of CC that draws on the extensive literature and theory of ITO. We conclude the paper with a number of research paths that future researchers can follow to advance the knowledge in this field.

Establishing a Cloud Computing Success Model for Hospitals in Taiwan

“…In addition to the IS success model perspective, previous studies indicate that cloud computing adoption is usually a kind of IS outsourcing. 12 For hospitals, transitioning from traditional IS platform to a cloud computing environment is a large-scale transformation. Most hospitals will look to collaborate with professional third-party cloud service providers.…”

Management Accounting Information Usefulness and Cloud Computing Qualities Among Small Medium Enterprises

“…SMEs use cloud computing because of reduced expenses; concentration on core competencies; efforts to improve business processes; the requirements of accessing technology, experts and skills; versatility; enhancement; and political reasons (Lacity et al, 2009). The key reasons for the SMEs to outsource their IT operations are to reduce cost, limit their investments on IT and reduce the risk of not being competitive, and as a tool in managing task overload during peak seasons (Yigitbasioglu et al, 2013). Previous studies identified other advantages of cloud computing as follows:…”

Estudio Organizacional Del Cloud Computing en Empresas Emprendedoras

“…Esta tecnología ha sido estudiada como un nuevo modelo de negocio (Ross y Blumenstein, 2013;Leimeister et al, 2010, Marston et al, 2011, Yigitbasioglu et al, 2013 que permite mayor capacidad de almacenamiento, facilidad de acceso y uso de recursos o ahorro de costes. Además, los usuarios de la nube se benefician de un más adecuado uso de los recursos, en cuanto a eficiencia, flexibilidad y transferencia de riesgos (Armbrust et al, 2010).…”