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with its emerging business model, which creates remarkable commercial
value in new use scenarios. Furthermore the disadvantage of “Loss of
Managerial Control” experienced adopting outsourcing point to the Cloud
advantage of keeping managerial control inside the enterprise. The
advantage of a business model for a firm is demonstrated by its better
financial performance. Despite all the benefits, moving IT infrastructure and
applications to the Cloud is related to a transformation of business
processes and IT architecture.
The Cloud business model serves for capturing economic value from the
virtualisation of IT infrastructure resources. This business model is defined
as a mediating structure between technology and economic value (Figure 2).
It mediates technical inputs such as feasibility and performance to economic
outputs such as added value, price or profit. Outlining the added value of
Cloud computing is to justify the financial means needed to realise such
business model.
Figure 12: Business Model as mediating structure (Chesbrough &
Rosenbloom 2002 )
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Chesbrough, H. & Rosenbloom, R. S. (2002). The role of the business model in capturing
value from innovation: evidence from Xerox Corporation’s technology spin‐off companies.
Industrial and Corporate Change, Vol. 11, No. 3, pp. 529—555.
