Cloud Computing Value Chains: Research from the Operations Management Perspective

Shi Chen (), Kamran Moinzadeh (), Jing-Sheng Song () and Yuan Zhong ()
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Shi Chen: Foster School of Business, University of Washington, Seattle, Washington 98195
Kamran Moinzadeh: Foster School of Business, University of Washington, Seattle, Washington 98195
Jing-Sheng Song: Fuqua School of Business, Duke University, Durham, North Carolina 27708
Yuan Zhong: Booth School of Business, University of Chicago, Chicago, Illinios 60637

Manufacturing & Service Operations Management, 2023, vol. 25, issue 4, 1338-1356

Abstract: Problem definition : Cloud computing is recognized as a critical driver of information technology–enabled innovations. The operations management (OM) community, however, has not been exposed enough to the essential operations problems that arise from the management of cloud value chains. Academic/practical relevance : In this paper, we examine recent research on cloud value chains and explore future research opportunities from an OM perspective. In particular, we focus on major operations management challenges facing a cloud provider in three problem domains: (1) cloud computing resource management, (2) pricing in the cloud computing marketplaces, and (3) capacity planning and management of cloud supply chains. Methodology : We describe prevalent business models and management practices in the cloud value chains, discuss recent research from OM that falls into each of the three problem domains mentioned, and point out opportunities for future research. Results : We note that cloud computing operations are driven by demand that exhibits distinct characteristics, including complex workflow, demand redundancy, multifeatured characteristics, multidimensional resource requirement, and nonstationarity. On the supply side, cloud computing operations also exhibit distinct characteristics, including heterogeneous resources, packing constraints, preconfigured (“bundled”) supply, technology risks, and cost uncertainty. These characteristics of demand and supply are not all prevalent in other operations. Managerial implications : Cloud computing operations not only share many features with classic OM problems, but also bring new challenges and innovative business models. Thus, OM tools and research have the potential to provide vital insights into cloud computing operations and impact management practices in the cloud industry, which, in turn, can stimulate much innovative research from the OM perspective.

Keywords: cloud computing; resource management; stochastic scheduling; pricing and revenue management; capacity planning; supply chain management (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormsom:v:25:y:2023:i:4:p:1338-1356

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