Risks in Cloud Computing Relationships: A Study of Large Public Buying Organizations in Sweden

Abstract

Cloud Computing (CC) is an increasingly alternative for IT Outsourcing (ITO). There is a consensus that a good ITO relationship between the service buyer and provider is a prerequisite for the success of an ITO. However, there is a lack of studies concerning the relationships between large companies owned by public organizations and CC-providers in Sweden. Consequently, there is a lack of knowledge about the risks that could jeopardize relationships between companies owned by public organizations and their CC providers. Thus, this study seeks to answer the research question: “What are the risk factors to consider for building and maintaining a successful relationship between CC-providers and companies owned by public organizations in Sweden from a buyer's perspective?”. The study has identified seven most critical risk factors that should be considered to keep or build a well-working relationship between CC parties. These factors are contracts, the client's degree of expertise in IT operations, measurement problems, the Swedish Public Procurement Act, provider challenges, relatedness, and ex-ante imperfection. The findings of this study can be used by large public organizations in Sweden who plan to use or who are using CC in order to mitigate the risks in CC relationships.