Organisational culture and cloud computing: coping with a disruptive innovation

Abstract

Since 2007, cloud computing has emerged as a computing paradigm that is likely to change many of the traditional ways of delivering computing services to people and organisations. Many organisations, small and large, have embraced it because of the advantages it promises in terms of flexible cost structure, scalability and efficiency. However, is cloud computing the type of disruptive innovation that is likely to require a fundamental shift in the way supplying organisations view their delivery of computing services, and in the way consuming organisations perceive and use those services? This paper attempts to address this issue by reflecting on the developments of this emerging computing service modality and Christensen's theory of disruptive innovation. In doing so, the article highlights the implications of cloud computing for the future directions of organisations and their cultures.

Keywords:

• cloud computing
• disruptive innovation
• organisational culture

Notes

In his 1997 book Christensen used the term ‘disruptive technology’ which he changed to ‘disruptive innovation’ in his subsequent publications.

BAE contracted Camwood to help it migrate its business applications to a private cloud and also contracted CSC to implement identity federation as a way of managing identity-related risks.