Preparing for the Future: Understanding the Seven Capabilities of Cloud Computing

To date, conversations about cloud computing have been dominated by vendors who focus more on technology and less on business value. While it is still not fully agreed as to what components constitute cloud computing technology, some examples of its potential uses are emerging. We identify seven cloud capabilities that executives can use to formulate cloud-based strategies. Firms can change the mix of these capabilities to develop cloud strategies for unique competitive benefits. We predict that cloud strategies will lead to more intense ecosystem-based competition; it is therefore imperative that companies prepare for such a future now.