“…Unemotional thinking will be necessary when comparing in‐house security to that of an external provider . (Field, )Despite some highly publicized system ‘glitches’ (as mentioned above) by a small number of the big cloud players, some analysts also argue that cloud computing has, thus far, a good uptime record. Linthicum (), a technology consultant, asserts that cloud computing providers understand the sensitivity of their customers toward downtime and that most of them have built distributed failsafe features into their offerings.…”
Section: The Need For Culture Changementioning
confidence: 99%
“…Unemotional thinking will be necessary when comparing in‐house security to that of an external provider . (Field, )…”
Cloud computing is increasingly emerging as a new model for servitizing the information technology (IT) industry. Many organizations, small and large, have embraced this new servitizing model for IT due to the advantages it promises in terms of fl exible cost structure, scalability, and effi ciency. But cloud computing is also a disruptive innovation that is likely to require a fundamental and cultural shift in the way organizations (both service providers and receivers) view their IT products and infrastructures. Most interestingly, the cloud paradigm represents an approach to providing services that is diff erent from the recently proposed servicebased (as opposed to physical goods-based) solutions. Th is paper will attempt to highlight this issue and refl ect on the development of this emerging business model that has servitized the IT industry and its implications for organizations (both sellers and consumers) and the cultural dimension it brings.To describe the cloud computing phenomenon within the context of 'servitization' requires some understanding of the history and the literature that gave birth to the concept of servitization. Th is is important as it will provide some insights into the characteristics that make cloud computing fundamentally diff erent from other servitized forms of business activity. Furthermore, the disruptive nature of cloud computing requires further investigation of this phenomenon within the context of the theory of disruptive innovation, as described by Clayton Christensen and his colleagues. Th is approach will enable a greater understanding of the behavioral issues that disruptive innovations give rise to and will provide a basis for understanding the cultural implications of cloud computing. Moreover, a good understanding of the cloud phenomenon is required. Hence, some space is provided here for defi ning this new IT service model, the services it provides, and the current issues that it gives rise to (including those of a practical and cultural nature).Cloud computing is a disruptive innovation that has servitized the IT industry in an unprecedented way. Unlike other known servicebased business models, the cloud is based on delivering a service that is originally a physical product.The cloud model promises many benefi ts but, as is the case with disruptive innovations, it is currently experiencing many performance issues such as security, interoperability, and reliability.Current evidence suggests that servitizing the IT industry through the cloud is likely to grow in popularity but will require a fundamental and cultural change in how organizations choose to take advantage of it.1 JEL classifi cation codes: O32, O33.T he emergence of cloud computing represents a new paradigm of servitization, where a physical product (software or hardware) is transformed into a service.
“…Unemotional thinking will be necessary when comparing in‐house security to that of an external provider . (Field, )Despite some highly publicized system ‘glitches’ (as mentioned above) by a small number of the big cloud players, some analysts also argue that cloud computing has, thus far, a good uptime record. Linthicum (), a technology consultant, asserts that cloud computing providers understand the sensitivity of their customers toward downtime and that most of them have built distributed failsafe features into their offerings.…”
Section: The Need For Culture Changementioning
confidence: 99%
“…Unemotional thinking will be necessary when comparing in‐house security to that of an external provider . (Field, )…”
Cloud computing is increasingly emerging as a new model for servitizing the information technology (IT) industry. Many organizations, small and large, have embraced this new servitizing model for IT due to the advantages it promises in terms of fl exible cost structure, scalability, and effi ciency. But cloud computing is also a disruptive innovation that is likely to require a fundamental and cultural shift in the way organizations (both service providers and receivers) view their IT products and infrastructures. Most interestingly, the cloud paradigm represents an approach to providing services that is diff erent from the recently proposed servicebased (as opposed to physical goods-based) solutions. Th is paper will attempt to highlight this issue and refl ect on the development of this emerging business model that has servitized the IT industry and its implications for organizations (both sellers and consumers) and the cultural dimension it brings.To describe the cloud computing phenomenon within the context of 'servitization' requires some understanding of the history and the literature that gave birth to the concept of servitization. Th is is important as it will provide some insights into the characteristics that make cloud computing fundamentally diff erent from other servitized forms of business activity. Furthermore, the disruptive nature of cloud computing requires further investigation of this phenomenon within the context of the theory of disruptive innovation, as described by Clayton Christensen and his colleagues. Th is approach will enable a greater understanding of the behavioral issues that disruptive innovations give rise to and will provide a basis for understanding the cultural implications of cloud computing. Moreover, a good understanding of the cloud phenomenon is required. Hence, some space is provided here for defi ning this new IT service model, the services it provides, and the current issues that it gives rise to (including those of a practical and cultural nature).Cloud computing is a disruptive innovation that has servitized the IT industry in an unprecedented way. Unlike other known servicebased business models, the cloud is based on delivering a service that is originally a physical product.The cloud model promises many benefi ts but, as is the case with disruptive innovations, it is currently experiencing many performance issues such as security, interoperability, and reliability.Current evidence suggests that servitizing the IT industry through the cloud is likely to grow in popularity but will require a fundamental and cultural change in how organizations choose to take advantage of it.1 JEL classifi cation codes: O32, O33.T he emergence of cloud computing represents a new paradigm of servitization, where a physical product (software or hardware) is transformed into a service.
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