Transition to the Cloud: A Vendor Perspective

The rising of cloud computing has dramatically changed the way software companies provide and distribute their IT product and related services over the last decades. Today, most software is bought off-the-shelf and distributed over the Internet. This transition is greatly influencing how software companies operate. In this paper, we present a case study of an ERP vendor for SMB (small and medium-size business) in making a transition towards a cloud-based business model. Through the theoretical lens of ecosystem, we are able to analyze the evolution of the vendor and its business network as a whole, and find that the relationship between vendor and Value-added-Reseller (VAR) is greatly affected. We conclude by presenting critical issues and challenges for managing such cloud transition.