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Value networks in cloud computing

Arto Ojala (Senior Researcher at the Cloud Software Program in the Department of Computer Science and Information Systems at the University of Jyväskylä, Jyväskylä, Finland)
Pasi Tyrväinen (Professor of Information Systems at the University of Jyväskylä, Jyväskylä, Finland)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 31 October 2011

Abstract

Purpose

The purpose of this paper is to examine 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, among other 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.

Keywords

Citation

Ojala, A. and Tyrväinen, P. (2011), "Value networks in cloud computing", Journal of Business Strategy, Vol. 32 No. 6, pp. 40-49. https://doi.org/10.1108/02756661111180122

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited