Background and Purpose: Bringing several opportunities for more effective and efficient IT governance and service exploitation, cloud computing is expected to impact the European and global economies significantly. Market data show that despite many advantages and promised benefits the adoption of cloud computing is not as fast and widespread as foreseen. This situation shows the need for further exploration of the potentials of cloud computing and its implementation on the market. The purpose of this research was to identify individual business model factors with the highest impact on cloud computing adoption. In addition, the aim was to identify the differences in opinion regarding the importance of business model factors on cloud computing adoption according to companies’ previous experiences with cloud computing services.
Methodology: Based on literature review, prior research results, and interviews with cloud computing providers and users, a research model was developed. Statistical analysis focused on identification of factors’ importance on cloud computing adoption and differences in opinions according to respondents’ previous experiences with cloud computing services. The study was done among 80 companies and five major cloud computing providers in Slovenia.
Results: The research results reveal statistically significant differences in opinions on the importance of cloud computing business model factors according to respondents’ previous experiences with cloud computing services. The results can provide orientation for redesign or innovation of existing business models towards the creation of a customer-oriented business model for the more successful exploitation of cloud computing services and business opportunities. For potential users, the findings represent guidelines for the successful adoption of cloud computing services.
Conclusions: In our research, the investigated business model factors could be classified into so-called “business model organizational factors”, as they primarily need to be considered by cloud service providers when defining or innovating their business models. For future research, the model should also include the impact of environmental factors, such as Competition, Business Partners, Legislation, Economic Situation, in order to investigate their impact on cloud adoption.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Afuah A. & Tucci C. (2001). Internet Business Models and Strategies. Boston: McGraw Hill.
Amit R. & Zott C. (2001). Value creation in e-business. Strategic Management Journal 22(6-7) 493−520 http://dx.doi.org/10.1002/smj.187
Amit R. & Zott C. (2012). Creating Value Through Business Model Innovation. MIT Sloan Management Review 53(3) 41-49.
Badger L. Bohn R. Chu S. Hogan M. & Liu F. (2011). US Government Cloud Computing Technology Roadmap. II(1 (Draft)).
Benlian A. Hess T. & Buxmann P. (2009). Drivers of SaaS Adoption – An Empirical Study of Different Application Types. Business & Information Systems Engineering 1(5) 357−369 http://dx.doi.org/10.1007/s12599-009-0068-x
Bogataj K. Pucihar A. (2012). Business Model FActors Influencing Cloud Computing Adoption. 25th Bled eConference Doctoral Consortium June 21 2012. Bled Slovenia.
Bogataj K. Pucihar A. (2013). Business Model Factors Influencing Cloud Computing Adoption: Differences in Opinion. 26th Bled eConference. eInnovations: Challenges and Impacts for Individuals Organizations and Society. Bled Slovenia.
Bogataj Habjan K. Pucihar A. (2017). Cloud Computing Adoption Business Model Factors: Does Enterprise Size Matter? Engineering Economics 28(3) 253–261 http://dx.doi.org/10.5755/j01.ee.28.3.17422
Borgman H. Bahli B. Heier H. & Schewski F. (2013). Cloud rise: Exploring Cloud Computing Adoption and Governance with TOE Framework. Proceedings of the 46th Hawaii International Conference on System Sciences (HICC). Wailea Maui HI.
Bouwman H. De Reuver M. Solaimani S. & Daas D. (2012). Business Models Tooling and a Research Agenda. Proceedings of the 25th Bled eConference eMergence: Merging and Emerging Technologies Processes and Institutions. Special issue. Bled Slovenia.
Bouwman H. De Vos H. & Haakre T. (2008). Mobile service innovation and business models. Springer.
Bouwman H. Faber E. & Van der Spek J. (2005). Connecting future scenario’s to business models of insurance intermediaries. Proceedings of the 18th Bled eCommerce Conference: eIntegrity (pp. 1-14). Bled Slovenia.
Chebrolu B. (2011). Assessing the relationships among cloud adoption strategic alignment and IT effectiveness. Journal of Information Technology Management XXII(2) 13−29.
Chen C. Shiue Y. & Shih P. (2011). Why firms do not adopt SaaS. African Journal of Business Management 5(15).
De Reuver M. (2007). Business model dynamics: a longitudinal cross-sectional case survey. Proceedings of the 20th Bled eConference eMergence: Merging and Emerging Technologies Processes and Institutions. Bled Slovenia.
E-Factors consortium. (2003). E-Business Model Roadmap Deliverable 3.1. (Revised): E-Factors Report Part 1: Overview and Current Trends and E-Business Models. Retrieved on November 15 2016 from https://www.wi1.uni-muenster.de/wi/studies/archive/izi/ss05/E-FACTORS_D3_1.pdf
Erevelles S. Stevenson T. & Srinivasan S. (2008). An analysis of B2B ingredient co-branding relationships. Industrial Marketing Management 37(8) 940-952 http://dx.doi.org/10.1016/j.indmarman.2007.07.002
Eurostat. (2016). Cloud computing - statistics on the use by enterprises. (Eurostat) Retrieved on November 16 2016 from http://ec.europa.eu/eurostat/statistics-explained/index.php/Cloud_computing_-_statistics_on_the_use_by_enterprises
Ganwar H. Date H. & Ramaswamy R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of Enterprise Information Management 28(1) 107-130.
Gartner Inc. (2016). Gartner Says By 2020 a Corporate “No-Cloud” Policy Will Be as Rare as a “No-Internet” Policit Is Today. Retrieved on June 15 2017 from http://www.gartner.com/newsroom/id/3354117
Gordijn J. Akkermans H. & van Vliet H. (2000). Business Modelling Is Not Process Modelling for E-Business and the Web Volume 1921 of the series Lecture Notes in Computer science. In Business Modelling Is Not Process Modelling (pp. 40-51). Springer-Verlag.
Hanelt A. Hildebrandt B. & Polier J. (2015). Uncovering the Role of Is in Business Model Innovation - a Taxonomy - Driven Approach To Structure the Field. 23rd European Conference on Information Systems (ECIS). Münster Germany.
Hedman J. & Kalling T. (2003). The business model concept: theoretical underpinnings and empirical illustrations. European Journal of Information Systems 12(1) 46-59 http://dx.doi.org/10.1057/palgrave.ejis.3000446
IDC InfoBrief. (2015). Don't Get Left Behind. The Business Benefits of Achieving Greater Cloud Adotion. Retrieved on November 16 2016 from http://www.cisco.com/c/dam/en/us/solutions/collateral/trends/cloud/cisco-bca-infobrief.pdf
IDC Research (2015). Worldwide Cloud IT Infrastructure Spending Forecast to Grow 26% Year Over Year in 2015 Driven by Public Cloud Datacenter Expansion. Retrieved on May 16 2016 from http://www.businesswire.com/news/home/20150706005147/en/Worldwide-Cloud-Infrastructure-Spending-Forecast-Grow-26.
Johansson J. Malmstrom M. Chroneer D. Styven E. Engstrom A. & Kåreborn B. (2012). Business Models at Work in the Mobile Service Sector. iBusiness 4(1) 84-92 http://dx.doi.org/10.4236/ib.2012.41010
Lambert S. & Davidson A. (2012). Applications of the business model in studies of enterprise success innovation and classification: An analysis of empirical research from 1996 to 2010. European Management Journal 31(6) 668–681 http://dx.doi.org/10.1016/j.emj.2012.07.007
Li X. Liu T. Qui L. & Wang F. (2009). The Method and Tool of Cost Analysis for Cloud Computing. Proceedings of the 2009 IEEE International Conference on Cloud Computing. Los Angeles CA USA.
Low C. Chen Y. & Wu M. (2011). Understanding the determinants of cloud computing adoption. Industrial Management & Data Systems 111(7) 1006-1023 http://dx.doi.org/10.1108/02635571111161262
Lumsden R. & Gutierrez A. (2013). Understanding the Determinants of Cloud Computing Adoption within the UK. Proceedings of the European Mediterranean & Middle Eastern Conference on Information Systems. Windsor.
Marston S. Li Z. Bandyopadhyay S. & Ghalsasi A. (2011). Cloud computing - The Business Perspective. Proceedings of the 44th Hawaii International Conference on System Sciences (pp. 1-11). Koloa HI USA.
Osterwalder A. (2004). The Business Model Ontology - A Proposition In A Design Science Approach. Doctoral disertation. L’Université de Lausanne Switzerland.
Osterwalder A. P. (2010). Business Model Generation: A Handbook for Visionaries Game Changers and Challengers. Wiley.
Osterwalder A. & Pigneur Y. (2009). Business model generation. Retrieved on September 12 2016 from Strategyzer: http://www.businessmodelgeneration.com/book
Osterwalder A. Pigneur Y. & Tucci C. (2005). Clarifying business models: Origins present and future of the concept. Communications of the Association for Information Systems 15 1-40 http://aisel.aisnet.org/cais/vol16/iss1/1?utm_source=aisel.aisnet.org%2Fcais%2Fvol16%2Fiss1%2F1&utm_medium=PDF&utm_campaign=PDFCoverPages
Petrovic O. Kittl C. & Teksten R. (2001). Developing Business Models for eBusiness. Proceedings of the International Conference on Electronic Commerce. Vienna.
Pucihar A. Lenart G. Kljajić B. Marolt M. & Maletič D. (2016). Role of ICT in Bussiness Model Innovation in SMEs - Case Of Slovenia. Proceedings of the 24th Interdisciplinary Information Management Talks: Information Technology Society and Economy Strategic Cross-Influences (pp. 231-241). Poděbrady Czech Republic: Trauner Verlag.
Rappa M. (2010). Business Models on the Web. Retrieved on November 12 20016 from Managing the digital enterprise http://digitalenterprise.org/models/models.html.
Sainio L. & Marjakoski E. (2009). The logic of revenue logic? Strategic and operatioinal levels of pricing in the context of software business. Technovation 29(5) 368-378.
Teece D. (2010). Business Models Business Strategy and Innovation. Long Range Planning 43 172-194 http://dx.doi.org/10.1016/j.lrp.2009.07.003
Timmers P. (1998). Business Models for Electronic Markets. Journal on Electronic Markets 8(2) 3-8 http://dx.doi.org/10.1080/10196789800000016
Tweel A. (2012). Examining the relationship between Technological Organizational and Environmental Factors and Cloud Computing Adoption. Doctoral dissertation Northcentral University Arizona.
Watson R. V. (2010). Factors influencing the adoption of cloud computing by decision making managers. Doctoral dissertation Capella University USA.
Wu W. W. (2011). Developing an explorative model for SaaS adoption. Expert Systems with Applications 38(12) 15057-15064 http://dx.doi.org/10.1016/j.eswa.2011.05.039
Zott C. A. (2009). Business Model Innovation: Creating Value In Times Of Change. Universia Business Review 3 (Special Issue on Business Models) 108-121.