Cloud computing and business-to-business networks

The objective of this study is to clarify the concept of cloud computing and analyse how it can influence the business-to-business (B2B) world. The study reviews the cloud concept and its definitions published throughout the IT literature. The article then analyses how cloud computing can be applied in B2B networks, from the point of view of transaction cost economics and social network theory. The analysis focuses on how operating in a cloud can influence the transaction costs businesses face in the marketplace and how it can affect the make or buy decision. The study concludes that the overall benefits of cloud computing, including low cost and low investment, real-time accessibility, standardisation and flexibility, lead to lower transaction costs, asset specificity and opportunism. Cloud integration allows companies to better communicate and coordinate with their partners, leading to higher and more efficient levels of market integration.