Cooperative Hybrid Cloud Intermediaries - Making Cloud Sourcing Feasible for Small and Medium-sized Enterprises

“The cloud” is widely advertised as a silver bullet for many IT-related challenges of small and medium-sized enterprises (SMEs). While it can potentially have a number of attractive benefits, many SMEs refrain from using cloud sourcing and cloud services because of high upfront costs for building the appropriate knowledge in the enterprise, for searching and screening of possible cloud service providers, and for mastering the intricate legal issues related to outsourcing sensitive data. This paper presents the concept of hybrid cloud intermediaries, an approach that can address many of the prevailing issues. With the aid of empirical findings from a cross-nation study of cloud adoption in SMEs for context, we describe the concept in detail and show conceivable variants, including a comprehensive cross-perspective consolidated model of cloud intermediary value-creation. Subsequently, we analyze the benefits of such a hybrid cloud intermediary for addressing cloud adoption issues in SMEs, and suggest suitable governance structures based on the cooperative paradigm. The resulting entity — a cooperative hybrid cloud intermediary or, more concisely, co-op cloud — is discussed in detail showing both feasible scenarios and limitations for SMEs that would like to engage in a cloud-sourcing. TYPE OF PAPER AND KEYWORDS Visionary paper: Cloud Intermediary, Cloud Service, IT-Outsourcing, small enterprises, medium-sized enterprises