Challenges of Cloud Computing in Business: Towards New Organizational Competencies

Oredo JO, Njihia J. "Challenges of Cloud Computing in Business: Towards New Organizational Competencies." International Journal of Business and Social Science . 2014;5:150-160.


Cloud computing is a nascent but fast growing innovation that has attracted increasing attention from both
researchers and practitioners as a new Information Technology (IT) paradigm. Cloud computing cannot be
sufficiently understood as a standalone phenomenon in the IT market, but rather as a core ingredient of a larger
transformation of the IT industry that impacts the entire IT ecosystem. Due to the change from enterprise
computing to cloud computing, organizations and individuals need to develop new skills and competencies.
Extant literature in cloud computing has mainly focused on its affordances and challenges with scant attention
given to organizational resources that enable efficient and effective adoption. This paper addresses how
organizations can identify their own local cloud adoption challenges and how to overcome those challenges by
developing new competencies. The paper draws on resource-based theory to propose new organizational
competencies required for seamless migration from enterprise computing to cloud computing. This study was
conducted through an extensive review of academic publications on cloud computing as well as professional
literature such as industry white papers and technical reports.
Keywords: Cloud computing; Resource based theory; Cloud competencies; Service models; Delivery Models;
Cloud brokerage.




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