Analyzing Cloud-based Startups: Evidence from a Case Study in Italy

Luca Ferri,Marco Maffei,Andrea Tomo,Gianluigi Mangia

doi:10.5539/ibr.v10n5p73

Luca Ferri, Marco Maffei + Show 2 more

Open Access

https://doi.org/10.5539/ibr.v10n5p73

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Abstract

The aim of this study is to analyze the reasons behind the adoption of cloud computing and its implementation process in startup firms as well as to verify the advantages and disadvantages deriving from the adoption of this tool and how it could increase entrepreneurial activities. We applied a research framework developed by previous scholars on cloud adoption within SMEs in an attempt to adapt it to startup firms. In particular, we conducted a case study in an Italian technological startup.Our results show that cloud technology supports and facilitates entrepreneurial activity, especially reducing several entry barriers for new entrepreneurs. This study contributes to the existing literature on cloud computing, and it has several managerial implications. First, it shows that setting up the organizational model on cloud computing allows entrepreneurs to reduce organizational efforts and ICT investments. Furthermore, this technology can reduce diversification costs by eliminating entry barriers, thus opening new markets and opportunities for entrepreneurs.

Highlights

The aim of this paper was to understand the economic and organizational contribution that cloud computing provides to startup firms
We developed a case study by analyzing a technology startup
This study enriches the literature on cloud computing, and it has some managerial implications

Summary

Introduction

Cloud computing has totally revolutionized the Information & Communication Technology (ICT) market, and it has been considered a suitable tool for solving common problems related to ICT (Gartner, 2010).According to Sultan and Van de Bunt-Kokhuis (2012), cloud computing, as defined by Christensen (Christensen and Raynor, 2003; Christensen et al, 2004), presents an innovation, as it allows firms to benefit from different kinds of services (hard memories, storage, computer network management, operating systems, applications, sensitive data management, etc.) at low prices and with great flexibility and scalability (Ibrahim et al, 2011; Buyya et al, 2008; Marston et al, 2011; Sultan, 2011; Kaiserswerth et al, 2012; Lee e Mautz, 2012). Microsoft (2012) and Nuvolaitaliana (2013) have shown an increasing adoption of cloud computing in startup firms. Several authors have focused their studies on these kinds of firms (Sultan, 2014; Ross and Blumenstein, 2015), with a particular emphasis on advantages and new opportunities related to the adoption of cloud computing (Sultan, 2011; Ross and Blumenstein, 2012, 2013; daSilva et al, 2014): this new technology, has generated a new global market thanks to the increasing adoption of devices such as smartphone and tablets. This, in turn, has led to the birth of a new generation of startup firms (Ross and Blumenstein, 2015) strongly oriented toward product innovation (Sultan, 2011) and sales strategies (Armbroust et al, 2010)

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