cloud computing adoption motivation in the european north and south

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Cloud Computing Adoption Motivation in the European North and South Euripidis Loukis ([email protected] ) • Niki Kyriakou ([email protected] )

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Page 1: Cloud Computing Adoption Motivation in the European North and South

Cloud Computing Adoption Motivation in

the European North and South

Euripidis Loukis ([email protected]) • Niki Kyriakou ([email protected])

Page 2: Cloud Computing Adoption Motivation in the European North and South

Structure

IntroductionLiterature ReviewResearch HypothesesData and MethodResultsConclusions

Page 3: Cloud Computing Adoption Motivation in the European North and South

European North-South Division

One of the most important problems of Europe has been the European North – South divideCountries of the European South have lower levels of:o Economic developmento Technological development

To overcome this situation:o It is necessary not only to cut wages and public expenses

in the European South (austerity)o But also make wider and better use of new technologies o Boost innovation

Page 4: Cloud Computing Adoption Motivation in the European North and South

Contribution

Empirical comparison of the European North and South with respect to one of the most important, innovative and disruptive new Information and Communication Technologies (ICT)

Cloud Computing

Focusing not on the ‘quantity’ of CC adoption

But on its ‘quality’: motivations, orientations, directions of CC adoption

Page 5: Cloud Computing Adoption Motivation in the European North and South

Cloud Computing (1/2)

Cloud computing radically changes the way firms access and use ICT to support their activitieso Part of the ICT support services required by firms are not

delivered by their internal ICT units, but by external providers on an on-demand basis over the Internet

o Users pay for the service as an operating expense, based on real usage

Without significant hardware and software investments

Without operation, support and maintenance costs

Page 6: Cloud Computing Adoption Motivation in the European North and South

Cloud Computing (2/2)

Benefits:

ICT cost reductiono Reduction of the required ICT investments (by converting

related capital investments to operating costs)

Rapid and low cost experimentation with and exploitation of new emerging technologies

Support and facilitate innovation and external collaboration

Quick implementation of new ICT-based ideas

Page 7: Cloud Computing Adoption Motivation in the European North and South

Literature Review

1st Stream of Cloud Computing adoption (Technology, Organization and Environment - TOE)

Technological factors (relative advantage, uncertainty, privacy risk, compatibility, observability, complexity, trialability)

Organizational factors (top management support, innovativeness, prior similar technology experience)

Environmental factors (competitive pressure, external support)

2nd Stream of Cloud Computing adoption (Synthesis of different theoretical frameworks)

Page 8: Cloud Computing Adoption Motivation in the European North and South

Research Hypotheses

Research hypotheses concerning the Cloud Computing Adoption

Η1: The adoption of an ICT investment reduction strategy is positively associated with the propensity for CC adoption

H2: The adoption of an innovation-oriented strategy is positively associated with the propensity for CC adoption

H2a: The adoption of a product/service innovation oriented strategy is positively associated with the propensity for CC adoption

H2b: The adoption of a process innovation oriented strategy is positively associated with the propensity for CC adoption.

H3: Interest in adopting new ICT is positively associated with the propensity for CC adoption

H4: Collaboration with other firms is positively associated with the propensity for CC adoption

Page 9: Cloud Computing Adoption Motivation in the European North and South

Data and Method (1/2)

Data 676 enterprises 6 European Countries

(Germany, France, England, Italy, Spain, Poland)

e-Business Market W@tch e-Business Survey 2009

Method Somers’ D Kendall’s tau-b

Page 10: Cloud Computing Adoption Motivation in the European North and South

Data and Method (2/2)Dependent Variable

Prop_Cloud Propensity to adopt Cloud ComputingIndependent Variables

ICT_inv_red Adoption an ICT investment reduction strategy

Prod_inn Product/service Innovation strategyProc_inn Process Innovation StrategyInt_DW Interest in Data warehouse/ Data mining

Int_Mobile Interest in Mobile ServicesExt_Inn_Colla

bExistence of External Innovation Collaboration

E_Ext_Inn_Collab

Existence of Electronic Innovation Collaboration

Page 11: Cloud Computing Adoption Motivation in the European North and South

Results (1/3)

Relative FrequenciesVery

Relevant (%)Partly

Relevant (%)Not Relevant

(%)Sout

hItaly 4,0 17,8 8,2Spain 3,2 12,8 84,0

North

UK 0,0 4,7 95,3France 1,2 11,6 87,2Germa

ny 0,0 4,4 95,6

Page 12: Cloud Computing Adoption Motivation in the European North and South

Results (2/3) – European North

Independent Variable Sommers’ D Kendall’s tau-b

ICT Investment Reduction Strategy .094 .102

Pr0duct/Service Innovation Strategy .044 .053

Process Innovation Strategy .107 .131

Interest in Data Warehousing/Mining .182 .199

Interest in Mobile Services .124 .155Innovation Collaboration .063 .067Electronic Innovation

Collaboration .276 .280

Page 13: Cloud Computing Adoption Motivation in the European North and South

Results (3/3) – European South

Independent Variable Sommers’ D Kendall’s tau-b

ICT Investment Reduction Strategy .205 .208

Pr0duct/Service Innovation Strategy .133 .116

Process Innovation Strategy .104 .106Interest in Data

Warehousing/Mining .328 .334

Interest in Mobile Services .232 .245Innovation Collaboration .118 .118

Electronic Innovation Collaboration .112 .113

Page 14: Cloud Computing Adoption Motivation in the European North and South

Conclusions

Southern European firms of the examined sectors view CC as a means of reducing ICT investmentNorthern European firms view CC as a means to support and facilitate product/service innovation

and also to reduce cost and increase capabilities of their existing external electronic collaboration for the development of innovations

Both Northern and Southern European firms view CC as a means of experimentation with exploitation of new emerging technologies

Page 15: Cloud Computing Adoption Motivation in the European North and South

Thank You!Euripidis Loukis ([email protected]) • Niki Kyriakou ([email protected])