Service co-production and the value co-creation: The case for a private cloud service deployment

As more and more large firms expect to migrate their legacy IT systems to cloud computing environment, private cloud has been widely adopted as a suitable cloud service deployment model. In contrast to the traditional IT system implementation, private cloud service deployment in the large company has greatly changed the production and delivery of the IT system. Based on the service dominant logic theory, this paper tries to explore the service co-production and the value co-creation process of a private cloud service project deployed in a state owned telecom operator in China. Using case study approach, this exploratory study reveals that the users and IT staffs are co-producers of the private cloud service and co-creators of its value, thus offering some insights for our understanding of the service logic perspective of cloud computing.