Cloud Computing for Agile and Resilient Organizations

Cloud Computing for Agile and Resilient Organizations

Copyright: © 2024 |Pages: 37
DOI: 10.4018/979-8-3693-3431-7.ch006
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Abstract

This chapter explores the impact of cloud computing on information systems (IS) performance through organizational agility. The research addresses a gap in fieldwork regarding how cloud computing enhances IS agility. Focusing on medium and large organizations in the MENA region, the study uses the Diffusion of Innovations (DOI) theory and the Technology-Organization-Environment (TOE) framework to identify key factors influencing cloud adoption. A quantitative study of 200 companies reveals that agility, cost-saving, security, privacy and trust, technological readiness, and data sovereignty significantly affect cloud adoption decisions. Additionally, interviews with 20 experts provide qualitative insights into how different cloud service models impact agility dimensions. These findings offer valuable guidance for decision-makers, helping them understand the effects of cloud computing on IS agility and make informed cloud adoption strategies.
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Introduction

In connection with this general concept and for organizations to use IT services effectively, cloud solutions combine with this Agile development posture, since access to server capacity and IT resources can be done through this service without pre-purchase requirements, which allows teams small-scale experiments, test different architecture models, and look for better solutions before defining architectural decisions.

One advantage of Agile is how it supports innovation. The Agile movement has emphasized the importance of self-organization, the participation of users in the construction process, the recognition of the value of technical practice, and the rational understanding of function and time in planning and control. Idealized as a humanistic concept, Agile brings a new concept of organizational development managers. According to the Agile model, an organization with the “Agile” characteristic of continuous delivery practice should invest in its employees to solve problems. This practice provides a friendly environment for innovation, since teams are encouraged to exchange knowledge and achieve harmony, aiming at the common goal.

This text firstly explores the advantages of cloud computing and uses a case study in an industrial organization. Then, it supports the general ideas used in the case study through a literature review. This exploration adds evidence to the ideas that strategically managing IT and quickly responding to market changes (as observed in the COVID-19 pandemic) are becoming increasingly important considering the needs of agile and resilient organizations.

Advantages of cloud computing infrastructures are helping organizations find new ways to become agile and resilient. By using the services available in a cloud computing infrastructure, an organization is able to focus more specifically on its core business. Regardless of the specific focus, while competing with other organizations in similar areas, the use of the cloud can be an additional differential.

It is worth mentioning that more and more enterprises are embracing cloud computing (C, 2017). This chapter aims to describe cloud computing technology in terms of agility and offer advice for IT decision-makers. Since cloud computing is still in its early stages, not enough research has focused on identifying its benefits and drawbacks. Outlining the limits of existing studies and the potential for future study, this chapter presents suggestions on when and how cloud computing is effective.

The rapid provisioning of IT resources is the key to the agility that cloud computing offers (Sawas & Watfa, 2015). The quick deployment of new services with minimum limits is made possible by this, which speeds up innovation.

All things considered, the cloud is versatile, easy to set up, doesn't cost anything, and can be accessed from any location. As a result of this revolutionary change, businesses are no longer limited by the limitations of earlier deployment methods. The cloud gives businesses access to everything they need to harness massive amounts of data or build apps that let consumers and workers engage with this data. It gives businesses the freedom to experiment with new approaches to old market problems.

The effects of agility on the best ways to incorporate cloud computing into existing information systems are the primary emphasis of this study's considerations on cloud computing adoption process variables. Mainly, it wants to find out how cloud computing can make information systems more agile and how agile charging affects decision-making. How does IS agility increase with cloud computing adoption? That is the research issue tackled.

One of the aspects impacting decision-making is the adoption of cloud computing technology and its function in boosting the agility of information systems. Preliminary empirical evidence for this is provided by previous study (Yang et al., 2013). Our research adds to the existing literature by speculating on and then testing hypotheses about what factors play a role in deciding to use cloud computing.

This study is primarily concerned with two research questions:

  • Why and what are the main drivers of cloud computing adoption?

  • How does the use of cloud computing enhance the agility of information systems?

In response to these concerns, we present a cloud adoption model and framework that draws on the technological acceptance model (TAM) and earlier diffusion of innovation (DOI) studies in order to increase IS agility by means of cloud computing.

Key Terms in this Chapter

Diffusion of Innovations (DOI) Theory: A framework used to explain how, why, and at what rate new ideas and technologies spread within cultures, applied in this study to understand cloud adoption.

Cloud Computing: A technology that allows businesses to access computing resources (servers, storage, applications, etc.) over the internet on a pay-as-you-go basis, offering scalability, flexibility, and cost-efficiency.

Competitive Pressure: The influence exerted by industry competitors on an organization to adopt cloud computing in order to maintain or improve its market position and operational efficiency.

Security, Privacy, and Trust Concerns: The level of apprehension regarding the protection of data and privacy in the cloud, which significantly impacts the decision to adopt cloud computing.

Information Systems (IS) Performance: The effectiveness and efficiency of an organization's IT systems in supporting business activities and goals, which can be improved through cloud computing adoption.

Technological Readiness: The extent to which an organization has the necessary technology infrastructure and skilled personnel to adopt and benefit from cloud computing.

Technology-Organization-Environment (TOE) Framework: A model that considers technological, organizational, and environmental contexts in the adoption of innovations like cloud computing.

Data Sovereignty: The concept that data is subject to the laws and governance structures within the nation it is collected or processed, which influences cloud adoption decisions due to legal and regulatory concerns.

Top Management Support: The degree of backing and commitment from senior executives in an organization towards the implementation of cloud computing, which is crucial for successful adoption.

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