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Journal cover: Journal of Business Strategy

Journal of Business Strategy

ISSN: 0275-6668

Online from: 1980

Subject Area: Strategy

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Value networks in cloud computing

Document Information:
Title:Value networks in cloud computing
Author(s):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)
Citation:Arto Ojala, Pasi Tyrväinen, (2011) "Value networks in cloud computing", Journal of Business Strategy, Vol. 32 Iss: 6, pp.40 - 49
Keywords:Cloud computing, Cloud gaming, Computer networks, Computing, SaaS, Value networks
Article type:Case study
DOI:10.1108/02756661111180122 (Permanent URL)
Publisher:Emerald Group Publishing Limited

PurposeThe 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/approachThe 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.

FindingsIt 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/valueThis 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.

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