The internationalization processes of cloud service providers in Finland

Abstract

This study focuses on the internationalization processes of the Finnish cloud service providers, in both pre- and post-phases. As this new kind of service model is likely to have a disrupting impact on the existing theoretical models, this study aims to observe to what extent it reshapes these models and what kind of new possibilities it offers for companies when it comes to their internationalization.

The study consists of a theoretical and empirical part. The first theoretical part examines the current state of the international services and what kind of new features cloud computing adds to this setting. In the second part processes and theories relating to the internationalization are presented from various perspectives to offer an extensive foundation on the existing research, on which the theoretical framework is built on. This framework is then compared against the empirical part to find out which of these traditional theories also apply today in the era of cloud computing and which do not. Qualitative research methods were chosen for this study, and ten Finnish cloud service providers were interviewed to collect data for further analysis.

Based on the interviews and the data analysis the increasing role of cloud computing was identified. Many of its elements are not yet fully utilized, mainly stemming from its young nature, but it is likely to cause more rapid internationalization processes in the future for various kind of companies. Currently the challenges for service providers to expand more quickly internationally rise from the customers’ side, as many are still concerned about the legal and security issues and do not fully understand the concept. However, attitudes are likely to change in the near future as both the offerings and the legal aspects become clearer. The triggers for Finnish cloud service providers to internationalize are also increasing, as the competition within the home market is becoming fiercer. Also, Finland offers a favorable environment for cloud computing from the customers’ point of view, which is likely to impact positively on service providers’ desire to target global customers.