A resource-based view of the strategies for utility comquting

Abstract

The advent of the utility computing service has set a new trend in the IT computing industry. By introducing utility computing, firms not only cut IT expenses, but also help with preparations for the surge of IT resource demands. Strategically firms focusing on maximum proficiency will prefer to outsource IT infrastructures like utilities (water supply, electricity), rather than own IT infrastructures. In the case of utility computing providers, by offering customized IT services it would provide value-added services, standardized billing systems, and new business models. Based on the Resource-Based View (RBV), this paper examines the resources and capabilities of utility computing service providers. This paper concentrates on Telecom providers and IT service providers, which plan to provide utility computing services in the near future. Analyzing the relationship between the resources and capabilities of each company, we can assess their competitive advantages and disadvantages giving business educated researched choices.