Implications of SaaS on Competencies of IT-Brokerages

The rise of cloud computing provides important challenges for organizations. One such challenge relates to the core capabilities organizations need in order to successfully deploy cloud computing. While implications of cloud computing for client capabilities have been studied, the implications for different types of suppliers are not well understood. Our research investigates the effects of cloud computing on the core capabilities of suppliers. In particular we focus on the consequences of Software as a Service (SaaS) for the required competencies of IT-Brokerages, intermediary parties between IT-providers and the client organization. Based on literature we developed three propositions which were examined in three in-depth case studies. Results indicate an increased importance of business facing skills, customer development and process re-engineering capabilities of the ITBrokerage when engaging with SaaS. Results also indicate that governance of SaaS-applications at the client is diverse and often underdeveloped, possibly leading to lack of focus on SaaS-governance at the IT-Brokerage. The research contributes to an increased understanding of requirements for suppliers to optimize cloud usage for organizations. This is crucial for organizations as with cloud computing they become more reliant on the capabilities of their suppliers.