IT infrastructure transformation and its impact on IT capabilities in the cloud computing context

Abstract

The advent of cloud computing has transformed the way companies managing their information technology (IT) and information systems (IS). Cloud computing provides three different service models, Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). This study was aimed to analyse the effects of IT infrastructure transformation into IaaS model on the changes in IT management capabilities. Based on the literature review, a research framework was developed. The framework suggests four IT capabilities components that can contribute to organizational agility, namely IT supply management, IT-business partnership, IT proactive posture and Change readiness IT capability. The framework was used to guide a case study to collect empirical data in a telecommunication company in Indonesia. Analysing the results of the case study, changes in the organization’s IT capabilities as the impact of IaaS adoption were discussed. This study provides insights into efforts to develop the required IT capabilities in order to realise the benefits from cloud computing adoption, in particular the IaaS.