Skip to main content

Abstract

Cloud computing is the consequence of the evolution of two distinct strands: technological innovation — based around virtualization and shared computing provision — and a distinctive service-based perspective on computing. Following from this dual-strand perspective on cloud computing, we argue in this chapter that the drivers of the near-term development of cloud computing will have their origins in both strands. We have already seen in the previous chapter, with the Desires Framework, how important it is to see and focus on the business service dimension inherent in cloud developments. In this chapter we develop the notion of the service trajectory with cloud. On a larger canvas, based on our interviews and analyses of the IT industry, we identify three big impacts that relate to the service trajectory in cloud computing. These are: a radical shift toward service performance, a move from products to business services and a radical reconfiguration of the supply industry. In practice, as will emerge, these three shifts present major challenges to the IT supply industry and also to its user organizations.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 44.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes

  1. The typology of innovations comes from Willcocks, L., Cullen, S. and Craig, A. (2011) The Outsourcing Enterprise: From Cost Management to Collaborative Innovation. London, Palgrave. See also chapter 6.

    Google Scholar 

  2. Out of recognition of this, the BPO pure player Xchanging established itself in its first contracts in 2001 at BAE Systems and the London Insurance Market with seven competencies, one of which was service. Studies of the key competencies of outsourcing suppliers frequently list customer development as core, with service suffused through several others. See Lacity, M. and Willcocks, L. (2009) Information Systems and Outsourcing: Studies in Theory and Practice, London, Palgrave, for more details of these examples.

    Google Scholar 

  3. See Willcocks, L. and Lacity, M. (2009) The Practice of Outsourcing: From Information Systems to BPO and Offshoring, London, Palgrave; Willcocks, Cullen and Craig, op. cit. for summaries and illustrative examples.

    Google Scholar 

  4. Also Cullen, S. and Willcocks, L. (2003) Intelligent IT Outsourcing (Oxford, ComputerWeeklyHeinemann).

    Google Scholar 

  5. RightNow (2010) Customer Experience Impact Report. New York, RightNow/Harris. This report was conducted online within the United States by Harris Interactive for RightNow Technologies between September 11 and 15, 2009, among 2295 U.S. adults aged 18 years or older. Results were weighted as needed for age, sex, race/ ethnicity, education, region, and household income. www.RightNow.com.

    Google Scholar 

  6. Interview with Wolfgang Faisst of SAP, November 2010. Quoted in Willcocks, L., Venters, W. and Whitley, E. (2012) Cloud and The Future of Business 3 — Impacts. London, Accenture/Outsourcing Unit.

    Google Scholar 

  7. SERVQUAL is a well researched, longstanding, simple, and useful model for qualitatively exploring and assessing customers’ service experiences and has been used widely by service delivery organizations. It is an efficient model for identifying the gap between perceived and expected service and is the most complete attempt to conceptualize and measure service quality for use across industries. A detailed assessment appears in Pitt, L., Watson, R. and Kavan, C. (1995) ‘Service Quality — A Measure of Information Systems Effectiveness.’ MIS Quarterly, 19(2): 56–67.

    Article  Google Scholar 

  8. Figures from IDC (2009) ‘IDC’s New IT Cloud Services Forecast: 2009–2013.’ http://blogs.idc.com/ie/?p=543, and from twitter.com/raconteur media (2010) ‘Raconteur on Enterprise Cloud Computing’, July 20. See also Harris, J. and Nunn, S. (2010) ‘Agile IT — Reinventing the Enterprise.’ Outlook October 2: 40–7. There are various estimates relating to cloud and much depends on what is counted as cloud. IBM, for example, has launched 11 cloud computing labs worldwide and in 2009 the company expected the market to grow from $47 billion in 2008 to $126 billion in 2012. Others have suggested a market revenue size of $150 billion by 2014.

  9. See Greenhalgh, T., Glenn, R., MacFarlane, F., Bate, P. and Kyriakidou, O. (2004) ‘Diffusion of Innovation in Service Organizations: Systematic Review and Recommendations.’ The Milbank Quarterly, 82(4): 581–629.

    Article  Google Scholar 

  10. Rogers, E. (1985) Diffusion of Innovations. New York, Free Press.

    Google Scholar 

  11. See Economist (2013) ‘Ascending to the Cloud.’ June 29.

    Google Scholar 

  12. Integrated development environments are the tools and workbenches used by developers to aid the development of applications.

    Google Scholar 

  13. See Hey, T. and Trefethen, A. (2008) ‘E-Science, Cyberinfrastructure and Scholarly Communication.’ In: G. Olson, A. Zimmerman, and N. Bos (eds) Scientific Collaboration on the Internet, Cambridge: MIT Press: 15–31; Economist (2010) ‘The Data Deluge.’ February 25.

    Google Scholar 

  14. MapReduce is a means of integrating vast clusters of data beyond the capability of SQL. It is based on clustering of data and thus suited to cloud infrastructures — like those in Google’s data centers. http://labs.google.com/papers/mapreduce.html.

  15. For example, Jumpbox.com provides complete, downloadable, virtualized servers based on open source products. Traditionally, if you wanted to install software like SugarCRM (an open source CRM product) you would need to install Linux, MySQL and various application packages and undertake a large amount of configuration. With Jumpbox the whole application stack can be downloaded — either to a local server or direct to Amazon Elastic Compute Cloud.

    Google Scholar 

  16. Vargo, S. and Lusch, R. (2004) ‘Evolving to a New Dominant Logic for Marketing.’ The Journal of Marketing, 68(1): 1–17.

    Article  Google Scholar 

  17. Vargo and Lusch, op. cit.: 5.

    Google Scholar 

  18. That is, it can be understood only in terms of the relationship between the customer and the provider of goods such as cloud services.

    Google Scholar 

  19. Grönroos, C. (2008) ‘Service Logic Revisited: Who Creates Value? And Who Co-creates?’ European Business Review, 20(4): 304.

    Google Scholar 

  20. Iyer, B. and Henderson, J. (2010) ‘Preparing for the Future: Understanding the Seven Capabilities of Cloud Computing.’ MIS Quarterly Executive, 9(2): 117–31.

    Google Scholar 

  21. Durkee, D. (2010) ‘Why Cloud Computing Will Never Be Free.’ Communications of the ACM, 53(5): 62–9.

    Article  Google Scholar 

  22. Vargo and Lusch, op. cit.: 2.

    Google Scholar 

  23. Maude, F. (2011) ‘ICT Strategy: Strategic Implementation Plan to Deliver Savings of Over a Billion Pounds.’ Cabinet Office. Archived at www.cabinetoffice.gov.uk/news/ict-strategy-strategic-implementation-plan-deliver-savings-over-billion-pounds.

    Google Scholar 

  24. Kautz, K., Madsen, S. and Norbjerg, J. (2007) ‘Persistent Problems and Practices in Information Systems Development.’ Information Systems Journal, 17(3): 217–39.

    Article  Google Scholar 

  25. Owens, D. (2009) ‘Securing Elasticity in the Cloud.’ Communications of the ACM, 53(6): 48–51.

    Google Scholar 

  26. Christensen, C. M. (1997) The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Cambridge, MA, Harvard Business Press.

    Google Scholar 

  27. Ciborra, C. U. (1996) ‘The Platform Organization: Recombining Strategies, Structures and Surprises.’ Organization Science, 7(2): 103–18.

    Article  Google Scholar 

  28. Porter, M. E. (1980) Competitive Strategy. New York, The Free Press.

    Google Scholar 

  29. Hammer, M. and Champy, J. (1993) Reengineering the Corporation: A Manifesto for Business Revolution. New York, Harper Business.

    Google Scholar 

  30. Mathiassen, L. and Pries-Heje, J. (2006) ‘Business Agility and Diffusion of Information Technology.’ European Journal of Information Systems, 15(2): 116–19.

    Article  Google Scholar 

  31. Mircea, M., Ghilic, B. and Stoica, M. (2011) ‘Combining Business Intelligence with Cloud Computing to Deliver Agility in Actual Economy.’ Economic Computation and Economic Cybernetics Studies and Research, 45(1): 39–54.

    Google Scholar 

  32. Brynjolfsson, E., Hofmann, P. and Jordan, J. (2010) ‘Economic and Business Dimensions of Cloud Computing and Electricity: Beyond the Utility Model.’ Communications of the ACM, 53(5): 32.

    Article  Google Scholar 

  33. Leimeister, S., Böhm, M., Riedl, C. and Krcmar, H. (2010) ‘The Business Perspective of Cloud Computing: Actors, Roles and Value Networks.’ In: T. Alexande, M. Turpin and J. van Deventer (eds) 18th European Conference on Information Systems: Pretoria, South Africa: 1861–73.

    Google Scholar 

  34. Friedman, T. (2005) The World is Flat: A Brief History of the Globalized World in the 21st Century. London, Allen Lane.

    Google Scholar 

  35. Weinhardt, C., Anandasivam, A., Blau, B., Borissov, N., Meinl, T., Michalk, W. and Stößer, J. (2009) ‘Cloud Computing — A Classification, Business Models and Research Directions.’ Business & Information Systems Engineering, 1(5): 391–9.

    Article  Google Scholar 

  36. Whitley, E. A. and Willcocks, L. P. (2011) ‘Achieving Step-change in Outsourcing Maturity: Toward Collaborative Innovation.’ MIS Quarterly Executive, 10(3): 95–109.

    Google Scholar 

  37. Ibid.

    Google Scholar 

  38. Mircea, Ghilic and Stoica, op. cit.

    Google Scholar 

  39. See Smith, D. (2010) Exploring Innovation. London, McGraw Hill.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Copyright information

© 2014 Leslie Willcocks, Will Venters and Edgar A. Whitley

About this chapter

Cite this chapter

Willcocks, L., Venters, W., Whitley, E.A. (2014). The Service Trajectory. In: Moving to the Cloud Corporation. Palgrave Macmillan, London. https://doi.org/10.1057/9781137347473_3

Download citation

Publish with us

Policies and ethics