When the Cloud runs out of its silver lining

Authored by: Kiron Ravindran , Juan Manuel Gonzalez Muñoz , Alex van den Bergh

The Routledge Companion to Managing Digital Outsourcing

Print publication date:  July  2020
Online publication date:  July  2020

Print ISBN: 9781138489370
eBook ISBN: 9781351037785
Adobe ISBN:


 Download Chapter



Cloud computing services are central to most organizations’ IT portfolio. Adopting a Cloud computing strategy typically involves a one-way migration of IT skills and capabilities out of the organization. Therefore, it is interesting to observe what happens when organizations wish to end such engagements. Based on a survey of Spanish firms, we list some key insights on software-as-a-service (SaaS) contracts in comparison to contracts containing application development and maintenance and others containing hardware services. We find that satisfaction levels are generally high and premature termination is lower in the case of SaaS contracts compared to application development and hardware contracts. Post-termination, the typical strategy, is to move to new external providers. Termination is associated with vendors’ service quality rather than relationship management. Unlike in the case of application or hardware contracts, SaaS contracts do not appear to suffer from the challenges of know-how transfer.

Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.