and technological benefits realized through cloud computing, setting the organization apart from its competitors.

Optimizing the strategic, economic, and technological benefits derived from cloud computing is a function of an organization’s ability to use its own IT-related resources and capabilities to leverage the resources of the vendor. Since cloud computing is generally characterized as an IT service (with the vendor providing and maintaining the software and hardware infrastructure), the ability of the client organization to integrate and utilize the vendor’s services determines the extent IT benefits are likely to be achieved. Organization-specific capabilities related to implementation, integration, and utilization of cloud services play a key role in deployment performance. Our study focused on three IT-related capabilities—technical, managerial, and relational—characterized as a major potential source of competitive advantage (see Figure 4). 3, 12 Since cloud-computing services are duplicated so easily, an organization’s unique IT-related capabilities are difficult to copy and yield deployment success.

Technical. Technical capability represents physical assets (such as computers, network equipment, and databases) or collective resources that give an organization functionality and a flexible, scalable foundation. It means being able to respond quickly to technology shifts in the marketplace while not inhibiting implementation of new technology. Technical capabilities are a means of achieving greater IT economies of scale and competitive advantage when leveraging the resources of cloud computing; for example, being responsive to the solutions offered through cloud services is more likely when the client organization’s technical capability is sufficiently adaptable and scalable, enabling it to realize IT efficiency and reduced IT expenditures (deployment success) more quickly than a competitor.

An organization’s unique technical capabilities coupled with cloud computing could yield improved cycle times and streamlined business processes distinguishing the organization from its competitors. The organization could also integrate new technologies

trust develops
through
communication,
procurement,
and transactional
activities,
culminating in
the it manager’s
perception that
the vendor is
trustworthy,
reliable,
evenhanded, and
working in the best
interests of the
client.

Figure 3. Server racks for servers that give cloud users the ability to grow capacity through an iaaS cloud-computing model.

 

(such as cloud computing) with existing platforms and exploit opportunities synergistically across business units; the business and economic potential of emerging technologies would be realized more quickly and cost effectively. Greater technical capability would also limit the complexities of cloud implementation and integration, enabling the organization’s IT department to deliver new technology more efficiently. Robust technical capability would increase the likelihood that adopting cloud services would enhance IT-related economies of scale and free up resources for core business activities—components of performance and competitive advantage.

Managerial. The likelihood of an organization implementing a new system successfully is a function of its manag-

Figure 4. organization-specific capabilities that can be a source of competitive advantage.

technical. It resources giving the organization functionality, flexibility, and scalability.

managerial. Human It resources resulting from training, experience, and insight.

Relational. Ability to develop positive associations with It providers characterized by trust.