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.
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Notes
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.
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.
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.
Also Cullen, S. and Willcocks, L. (2003) Intelligent IT Outsourcing (Oxford, ComputerWeeklyHeinemann).
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.
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.
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.
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.
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See Economist (2013) ‘Ascending to the Cloud.’ June 29.
Integrated development environments are the tools and workbenches used by developers to aid the development of applications.
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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.
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.
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That is, it can be understood only in terms of the relationship between the customer and the provider of goods such as cloud services.
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© 2014 Leslie Willcocks, Will Venters and Edgar A. Whitley
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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
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DOI: https://doi.org/10.1057/9781137347473_3
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