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.