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By 2010, cloud computing had become established as a new model of IT provisioning for service providers. New market players and businesses emerged, threatening the business models of established market players. This teaching case explores the challenges arising through the impact of the new cloud computing technology on an established, multinational IT service provider called ITSP. Should the incumbent vendors adopt cloud computing offerings? And, if so, what form should those offerings take? The teaching case focuses on the strategic dimensions of technological developments, their threats and opportunities. It requires strategic decision making and forecasting under high uncertainty. The critical question is whether cloud computing is a disruptive technology or simply an alternative channel to supply computing resources over the Internet. The case challenges students to assess this new technology and plan ITSP?s responses.

Competing in the Clouds: A Strategic Challenge for ITSP Ltd.