Exploring sustainability in cloud contract for agency relationship.

With the widespread use of cloud computing in modern business, it is more important than ever to ensure that the cloud contracts binding enterprises and cloud providers are balanced and sustainable. However, many inequitable cloud contracts in the market exist and can lead to issues that harm the sustainable partnership between enterprises and cloud providers. There is a scarcity of research examining elements that promote sustainability in cloud contracts. To address this gap, this study offers a comprehensive examination of the relationship between the two parties, and the crucial role that cloud contracts play in ensuring a sustainable partnership. By applying agency theory to evaluate the impact of four key elements on cloud contracts, this study offers unique insights into how to manage this critical aspect of modern business. Based on a quantitative survey of 685 participants, the results are analysed using confirmatory factor analysis (CFA) and structural equation modelling (SEM), providing a robust and reliable understanding of the factors that promote sustainability in cloud contracts. The findings reveal that investment in information systems and the length of agency relationship are critical to the success of outcome-based cloud contracts, while task programmability has the opposite effect. Moreover, the research sheds light on the possible explanations for each element’s impact on cloud contracts. This paper offers valuable insights that can help guide business in managing this critical relationship, making it a must-read for anyone interested in the future of cloud computing.