Value Networks in Cloud Computing

Abstract

Purpose: This paper examines value networks in cloud computing. It demonstrates the kinds of value offered by such networks to firms within a given network, and considers how and why the network may change over time. Design/methodology/approach: The paper reports on a longitudinal case study, including a total of seven semi-structured open-ended interviews, conducted with five informants from the case firm. Findings: It was found that cooperation in value networks provides not merely financial benefits, but also knowledge, plus intangible benefits. Value networks should be evaluated as a whole, since there may be indirect connections – i.e. the value comes not directly from customers, but through the partners in the network. The study also shows the dynamic nature of value networks, as illustrated by changes in a network that were based on transformations in the market environment, and on product development. Originality/value: This paper contributes to an understanding of value networks and their dynamics, and of cloud computing. In addition, the paper looks at a value network in cloud computing from the service provider’s point of view – an aspect that has been neglected in previous studies (Armbrust et al., 2010).