The Times they are A-Changin for ICT Service Provision: A Cloud Computing Business Model Perspective

Abstract

Cloud computing has accelerated business model evolution for delivering information, commu-nication and technology (ICT) solutions. In transitioning from traditional to cloud-based service provision, some ICT vendors have experienced substantial difficulties in realising effective busi-ness models. Taking the perspective of 15 large business model mature and small and medium enterprise born-on-the-cloud multinational ICT vendors, this qualitative study contributes to the dearth of research examining the broader impact of cloud computing on ICT vendor business models. The study provides two core insights. First, using the STOF business model framework, the paper provides a vivid contextual understanding of the nuanced impact of cloud computing along four core business model domains: service, technological, organisational and financial. Information systems business model research areas which are ripe for further investigation are also delineated. Second, the study identifies a number of salient challenges which are impacting ICT vendors efforts to effectively leverage cloud-based business models. Subsequently, the paper provides a number of specific recommendations which can be used by practitioners in order to minimise or eliminate these challenges.

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