Cloud Computing and the Business Model

Companies are constantly conducting assessments on the capabilities of cloud computing to help reduce costs, achieve flexibility, deliver scalability, and leverage value of resources through new technologies. Organizations are banking on cloud computing to leverage benefits and are beginning to cross towards building prototypes and migration of real applications.

There is a deeper question forming about how business models are impacted by cloud computing and vice-a-versa. Most of the cloud talk to date has been focused around the technical challenges, opportunities and questions. However, not enough has been focused around the business model transformation of the cloud.

For many years to date, software vendors have confronted questions on business models and issues on monetization during the transition to SaaS delivery. Now with the barrage of cloud services, Systems Integrators, Hardware Vendors and other types of technology firms also have the same types of challenges.

These points are highlighted nicely in the new Accenture Report titled Where the Cloud Meets Reality: Operationally Enabling the Growth of New Business Models. We have recently talked with Tim Jellison, one of the authors of the Accenture Report, and we agree with the identified business model topics in the report.

Accenture Report spots ten various business models (like Appliance Model, PaaS, Licensed Software) and talk of how enterprises can plan and address business model changes and how to begin.

It is beyond any debate why the XaaS market is growing at a rapid rate. A Gartner study is highlighted in an Accenture Report which shows that enterprises will have an annual spending for PaaSm, SaaS, IaaS and other combined XaaS models of almost $35,000,000. That's more than 300% beyond 2010.

Disruptive technologies and large growth can help bring great revenue opportunities to organizations. Thus comes in certain questions on legal, technology, finance, operations, marketing and sales which needs to be addressed by executives.

This is most likely the beginning of discussions in business models that can come in many forms.

You too can know more about ways which cloud computing could help functions and processes in businesses more efficient to cut down on operational costs. Cloud computing can help in controlling business processes and relevant information. It is expected that cloud computing deployment in organizations will help improve the efficiency, independence, governance, and security of functions and processes regardless of where these enterprises are located.

Business models suggest improved efficiency and cost savings while more and more enterprises and organizations from all kinds of industries realize that cloud computing is reliable in achieving goals and targets.

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