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EuroCloud Deutschland_eco e.V.



 Factors of Market Acceptance of
       Cloud Computing –
  an Analyses by Case-based Evidences

Prof. Dr. Georg Rainer Hofmann
Information Management Institute
University Aschaffenburg, Germany

               Luxembourg, 8 October 2012
EuroCloud Deutschland_eco e.V.



Professorship for Information Management

 Strategic Data Processing Concepts
  Issues of General Leadership
 Information System Management
 Consulting Firm Management –
  since 1997 in Aschaffenburg, University Liechtenstein,
  University Würzburg, Seminars „Consulting of Consultants“, a.o.
 „Mathematics, Formal Systems, and Philosophy“


                                        georg-rainer.hofmann@h-ab.de



                         Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       2
The Term „Acceptance“
    to accept,                         to tolerate                       (in Latin: „acceptare“)

      active                              passiv


    Agreement                           Tolerance


      Price                        Compensation                                Context


    Individuals                           Groups                               Subject

      ideal:                            material:
    Conzepts                            Products                                Object
    Processes                          Procedures

               ESF-Projekt KontAkS

               Wissenstransfer von Methoden nicht-technischer Innovationsforschung zur Ermittlung
               von Kontext und Akzeptanz von Systemen



               KontAkS   – Hofmann –   26. Oktober 2011                               Seite 3
EuroCloud Deutschland_eco e.V.




Acceptance requires Trust
» Each and every co-operation requires trust.

» Rationally and economically, trust is (much)
  cheaper and „more efficient“ than being suspicious,
  trust reduces the complexity of the environment.

» How may trust building measures be „constructed“?
– Niklas Luhmann: „Vertrauen“
– Michael Tomasello: „Warum wir kooperieren“
– Martin Hartmann: „Die Praxis des Vertrauens“


                                 Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       4
EuroCloud Deutschland_eco e.V.




The Issue
» „Using Cloud Computing is still affected with much
  uncertainity and the required trust ist still not at
  hand.“

» How may this problem be addressed?


– Georg Rainer Hofmann, Meike Schumacher:
     „Untersuchungen zur Akzeptanz von Cloud Computing“


                                Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       5
EuroCloud Deutschland_eco e.V.




Methodical Approach
1 Identification of relevant socio-economical contexts
2 Analysis of acceptance and trust building, as well as contrary
   mechanisms of other diverse contexts and branches
   („Case-based Evidence“)
3 Evaluation of transfer of the identified factors
4 Elaboration of recommendations




                         Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       6
EuroCloud Deutschland_eco e.V.




The non-issues

 • No representative empiric results for acceptance

 • Priority on real (historical) cases

 • No relation to Information Technology (as such)




                   Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       7
EuroCloud Deutschland_eco e.V.




Case-based Evidence
The examination of factors of acceptance and trust shall concen-
    trate on the four branches and products resp. services, as
    follows:

»   Automotive:      „Blind Trust“ in (working) technology

»   IT-Outsourcing: Cloud Computing – expl.: DATEV, (DE-CIX)

»   Banking:         Acceptance – despite financial crisis

»   Fuel type E10:   Failure of acceptance of the product

                       Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       8
EuroCloud Deutschland_eco e.V.



Case Study Automotive
» Large time frame for probing and testing of vehicles and
  systems

» (TÜV-) public certification for vehicles
  Traffic controlled by the police

» Safety is a „physical“ feeling
» Comprehensive guarantee for mobility
» Psychology of selling:
           Sympathy – Enthusiasm – Facts and Prices

                         Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012       9
EuroCloud Deutschland_eco e.V.



Case Study IT-Outsourcing
» Market leaders in spezific areas, like book keeping and
  accounting, or P2P internet exchange
» Offering Cloud services – like DATEV or DE-CIX

» In Germany: Berufsständische Genossenschaft (eG) oder
  Verein (e.V.) increases the level of control and supervision
» „Experts talk to experts“ – long tradition of the co-operation

» Qualified service, high price levels


                        Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012      10
EuroCloud Deutschland_eco e.V.



Case Study Banking

» Personal contact by the consultant – „social credit“

» Legal context („Einlagensicherungsfonds“) and political
    influence and control
» Public quarantees and back-up (BaFin)

» Tresor, buildings, infrastructure, attitude of banking personal,
    etc., form trust-building symbols



                        Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012      11
EuroCloud Deutschland_eco e.V.



Case Study Fuel Type E10

» „Technical“ warning at the POS: No quarantee !
» Information deficite at the prospective client, differrence to
    fuel type E5, internation experiences?

» Decreasing prices shows no effective impacts.

» Role of car manufactures and automotive associations –
   public political discussions:
   Ecology, Ethics, etc.

                         Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012      12
EuroCloud Deutschland_eco e.V.



        Tentative Results –
                                        General comprehensive
                                                                               Trusted Advisory
Multi-dimensional Benefit




                                           shift of reliability
                                                                          „Genossenschaft“ or „Verein“
                                                                              Closed User Groups
                                          „Sympathy Cloud“
                                          Liability, Seriosity
                                 „Chaos                                      Certification to ISO 27001
                               Reduction“                                   Providing internal Revision
                            Precise Language                                         Certificates
                              „Worthiness “
                                           Seminars and Training
                                         for the „informed buyers“               Technological Effort
                                                                                Increasing „Maturity“


                                               Organisational or financial Effort
                                                      Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012      13
EuroCloud Deutschland_eco e.V.



Tentative Approaches –
» Potential(!) information transparency
» Instructing clients about maturity of technology

» Closed „expert“ client groups
» Provision of public(!) quarantees and certifications
» Taking-over liability („Haftungstransfer“)

» Psychology of sympathy, rendering of liability and seriosity
» Public political discussion: „Big Brother Award“ reputation

» Prices and technical details in the background
                        Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012      14
EuroCloud Deutschland_eco e.V.




Partner
» EuroCloud Deutschland_eco e.V.

» Contact Persons:

  Bernd Becker, Vorstandsvorsitzender
  Andreas Weiss, Geschäftsführer

 Documentation published by ca. fall 2012

                     Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012      15

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Cloud Computing Acceptance Factors

  • 1. EuroCloud Deutschland_eco e.V. Factors of Market Acceptance of Cloud Computing – an Analyses by Case-based Evidences Prof. Dr. Georg Rainer Hofmann Information Management Institute University Aschaffenburg, Germany Luxembourg, 8 October 2012
  • 2. EuroCloud Deutschland_eco e.V. Professorship for Information Management  Strategic Data Processing Concepts Issues of General Leadership  Information System Management  Consulting Firm Management – since 1997 in Aschaffenburg, University Liechtenstein, University Würzburg, Seminars „Consulting of Consultants“, a.o.  „Mathematics, Formal Systems, and Philosophy“ georg-rainer.hofmann@h-ab.de Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 2
  • 3. The Term „Acceptance“ to accept, to tolerate (in Latin: „acceptare“) active passiv Agreement Tolerance Price Compensation Context Individuals Groups Subject ideal: material: Conzepts Products Object Processes Procedures ESF-Projekt KontAkS Wissenstransfer von Methoden nicht-technischer Innovationsforschung zur Ermittlung von Kontext und Akzeptanz von Systemen KontAkS – Hofmann – 26. Oktober 2011 Seite 3
  • 4. EuroCloud Deutschland_eco e.V. Acceptance requires Trust » Each and every co-operation requires trust. » Rationally and economically, trust is (much) cheaper and „more efficient“ than being suspicious, trust reduces the complexity of the environment. » How may trust building measures be „constructed“? – Niklas Luhmann: „Vertrauen“ – Michael Tomasello: „Warum wir kooperieren“ – Martin Hartmann: „Die Praxis des Vertrauens“ Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 4
  • 5. EuroCloud Deutschland_eco e.V. The Issue » „Using Cloud Computing is still affected with much uncertainity and the required trust ist still not at hand.“ » How may this problem be addressed? – Georg Rainer Hofmann, Meike Schumacher: „Untersuchungen zur Akzeptanz von Cloud Computing“ Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 5
  • 6. EuroCloud Deutschland_eco e.V. Methodical Approach 1 Identification of relevant socio-economical contexts 2 Analysis of acceptance and trust building, as well as contrary mechanisms of other diverse contexts and branches („Case-based Evidence“) 3 Evaluation of transfer of the identified factors 4 Elaboration of recommendations Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 6
  • 7. EuroCloud Deutschland_eco e.V. The non-issues • No representative empiric results for acceptance • Priority on real (historical) cases • No relation to Information Technology (as such) Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 7
  • 8. EuroCloud Deutschland_eco e.V. Case-based Evidence The examination of factors of acceptance and trust shall concen- trate on the four branches and products resp. services, as follows: » Automotive: „Blind Trust“ in (working) technology » IT-Outsourcing: Cloud Computing – expl.: DATEV, (DE-CIX) » Banking: Acceptance – despite financial crisis » Fuel type E10: Failure of acceptance of the product Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 8
  • 9. EuroCloud Deutschland_eco e.V. Case Study Automotive » Large time frame for probing and testing of vehicles and systems » (TÜV-) public certification for vehicles Traffic controlled by the police » Safety is a „physical“ feeling » Comprehensive guarantee for mobility » Psychology of selling: Sympathy – Enthusiasm – Facts and Prices Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 9
  • 10. EuroCloud Deutschland_eco e.V. Case Study IT-Outsourcing » Market leaders in spezific areas, like book keeping and accounting, or P2P internet exchange » Offering Cloud services – like DATEV or DE-CIX » In Germany: Berufsständische Genossenschaft (eG) oder Verein (e.V.) increases the level of control and supervision » „Experts talk to experts“ – long tradition of the co-operation » Qualified service, high price levels Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 10
  • 11. EuroCloud Deutschland_eco e.V. Case Study Banking » Personal contact by the consultant – „social credit“ » Legal context („Einlagensicherungsfonds“) and political influence and control » Public quarantees and back-up (BaFin) » Tresor, buildings, infrastructure, attitude of banking personal, etc., form trust-building symbols Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 11
  • 12. EuroCloud Deutschland_eco e.V. Case Study Fuel Type E10 » „Technical“ warning at the POS: No quarantee ! » Information deficite at the prospective client, differrence to fuel type E5, internation experiences? » Decreasing prices shows no effective impacts. » Role of car manufactures and automotive associations – public political discussions: Ecology, Ethics, etc. Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 12
  • 13. EuroCloud Deutschland_eco e.V. Tentative Results – General comprehensive Trusted Advisory Multi-dimensional Benefit shift of reliability „Genossenschaft“ or „Verein“ Closed User Groups „Sympathy Cloud“ Liability, Seriosity „Chaos Certification to ISO 27001 Reduction“ Providing internal Revision Precise Language Certificates „Worthiness “ Seminars and Training for the „informed buyers“ Technological Effort Increasing „Maturity“ Organisational or financial Effort Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 13
  • 14. EuroCloud Deutschland_eco e.V. Tentative Approaches – » Potential(!) information transparency » Instructing clients about maturity of technology » Closed „expert“ client groups » Provision of public(!) quarantees and certifications » Taking-over liability („Haftungstransfer“) » Psychology of sympathy, rendering of liability and seriosity » Public political discussion: „Big Brother Award“ reputation » Prices and technical details in the background Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 14
  • 15. EuroCloud Deutschland_eco e.V. Partner » EuroCloud Deutschland_eco e.V. » Contact Persons: Bernd Becker, Vorstandsvorsitzender Andreas Weiss, Geschäftsführer  Documentation published by ca. fall 2012 Prof. Dr. Georg Rainer Hofmann – Luxembourg – 8 October 2012 15