Characteristics of the Cloud Computing Model as a Disruptive Innovation

The increasing complexity and management costs of enterprise information technology forces organizations to find improved ways of fulfilling their computing needs. Cloud Computing model evolved as a new means of delivering and consuming information technology services in organizations. While the new model confers greater flexibility and increased agility, and enables innovation in enterprises, its adoption raises important challenges to business leaders and demands a new mindset. As data and information make ever more relevant contribution to organizational performance, there is a lot of anxiety among managers when it comes to entrusting other companies with providing and operating technological infrastructure, computing platform, and business applications - assets that have been long perceived as critical to business success. Cloud Computing model is often described as a disruptive innovation. The extensive adoption of Cloud Computing model determines significant changes in most of the industries, as they create, commercialize, and/or consume information technology services. The paper reviews the characteristics of disruptive technological innovations, as described by Professor Clayton Christensen, and associates those with Cloud Computing characteristics and impact on established companies and industries. The authors, revealing a rather subtle nature of Cloud Computing penetration, explain the relatively slow pace of adoption that is indicated by current trend analysis. Even though it may be less booming than some previous technological disruptions, the new computing paradigm has a pervasive character and will eventually replace the traditional computing model.