Cloud Computing Adoption Motivation in the European North and South

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Cloud Computing Adoption Motivation in the European North and SouthEuripidis Loukis (eloukis@aegean.gr) Niki Kyriakou (nkyr@aegean.gr)

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StructureIntroductionLiterature ReviewResearch HypothesesData and MethodResultsConclusions

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European North-South DivisionOne of the most important problems of Europe has been the European North South divideCountries of the European South have lower levels of:Economic developmentTechnological developmentTo overcome this situation:It is necessary not only to cut wages and public expenses in the European South (austerity)But also make wider and better use of new technologies Boost innovation

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ContributionEmpirical 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 ComputingFocusing not on the quantity of CC adoptionBut on its quality: motivations, orientations, directions of CC adoption

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Cloud Computing (1/2)Cloud computing radically changes the way firms access and use ICT to support their activitiesPart 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 InternetUsers pay for the service as an operating expense, based on real usageWithout significant hardware and software investmentsWithout operation, support and maintenance costs

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Cloud Computing (2/2)Benefits:ICT cost reductionReduction of the required ICT investments (by converting related capital investments to operating costs)Rapid and low cost experimentation with and exploitation of new emerging technologiesSupport and facilitate innovation and external collaborationQuick implementation of new ICT-based ideas

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Literature Review1st 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)

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Research HypothesesResearch hypotheses concerning the Cloud Computing Adoption1: The adoption of an ICT investment reduction strategy is positively associated with the propensity for CC adoptionH2: The adoption of an innovation-oriented strategy is positively associated with the propensity for CC adoptionH2a: The adoption of a product/service innovation oriented strategy is positively associated with the propensity for CC adoptionH2b: 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 adoptionH4: Collaboration with other firms is positively associated with the propensity for CC adoption

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Data and Method (1/2)Data676 enterprises6 European Countries (Germany, France, England, Italy, Spain, Poland)e-Business Market W@tche-Business Survey 2009MethodSomers DKendalls tau-b

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Data and Method (2/2)Dependent VariableProp_CloudPropensity to adopt Cloud Computing

Independent VariablesICT_inv_redAdoption an ICT investment reduction strategyProd_innProduct/service Innovation strategyProc_innProcess Innovation StrategyInt_DWInterest in Data warehouse/ Data miningInt_MobileInterest in Mobile ServicesExt_Inn_CollabExistence of External Innovation CollaborationE_Ext_Inn_CollabExistence of Electronic Innovation Collaboration

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Results (1/3)Relative FrequenciesVery Relevant (%)Partly Relevant (%)Not Relevant (%)SouthItaly4,017,88,2Spain3,212,884,0NorthUK0,04,795,3France1,211,687,2Germany0,04,495,6

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Results (2/3) European NorthIndependent VariableSommers DKendalls tau-bICT Investment Reduction Strategy.094.102Pr0duct/Service Innovation Strategy.044.053Process Innovation Strategy.107.131Interest in Data Warehousing/Mining.182.199Interest in Mobile Services.124.155Innovation Collaboration.063.067Electronic Innovation Collaboration.276.280

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Results (3/3) European SouthIndependent VariableSommers DKendalls tau-bICT Investment Reduction Strategy.205.208Pr0duct/Service Innovation Strategy.133.116Process Innovation Strategy.104.106Interest in Data Warehousing/Mining.328.334Interest in Mobile Services.232.245Innovation Collaboration.118.118Electronic Innovation Collaboration.112.113

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ConclusionsSouthern 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 innovationand also to reduce cost and increase capabilities of their existing external electronic collaboration for the development of innovationsBoth Northern and Southern European firms view CC as a means of experimentation with exploitation of new emerging technologies

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Thank You!Euripidis Loukis (eloukis@aegean.gr) Niki Kyriakou (nkyr@aegean.gr)