CLOUD SERVICE PROVIDERS’ COMPETITIVENESS – THE CASE OF LATVIA

Abstract

Development of cloud computing brings to small and medium-sized enterprises the management power of the Business Intelligent tools of a large enterprise with the lowest possible cost. This means that business management applications for small and medium-sized businesses are developed in the cloud and can be accessible from anywhere in the world, not only from the company's computer. Cloud computing market is one of the fastest growing markets in IT industry.

Therefore, the question arises: are Latvian IT industry entrepreneurs ready to follow the new trend in software development? The objective of this paper is to analyze the existing cloud computing services that are based on the SaaS principle both in Latvia and abroad. The aim is to investigate whether there is any difference between the strategies adopted by the Latvian and European/American counterparts. Each portal was evaluated according to three parameters - price, functionality and appearance. Having got acquainted with the beta versions of portals study, participants had to write a reflection and answer the questionnaire developed for the purpose of smoothing qualitative assessment inaccuracies.

The research results provide an insight into cloud services in Latvia and indicate obstacles that hinder their development. The results indicate that the Latvian SaaS providers have not fully realized the benefits of cloud technologies, and the services they provide are insufficient or, in some cases, unnecessary. In contrast, European solutions have a better understanding of customer needs and improve service quality continuously.

DOI: http://dx.doi.org/10.5755/j01.em.19.1.5606