- Market size: at least 1.3 billion users (and counting)
- Competition: anyone else in the world who can develop and operate the same software/services as you
- There will only be room for 1-3 profitable operators in each niche
- But there will be a lot of niches!
- Corporate Cloud Services spend will be $42Bn/year by 2012 (IDC, Oct 2008)
- 0.001% = $42 million annual revenues
- Rules of engagement:
- Frictionless sign up / leave model
- No vendor lock-in possible any more
- Reputation and trust are everything
- Customers own their own data
- They can ask for it back
- They can control their own privacy settings
- However, while they "lend" it to you, you can make $$
- The customer is in charge
- However, there are plenty of customers to go around!
Thursday, November 20, 2008
Cloud Services - Business Fundamentals
I thought I'd just separate out some key points I made in my talk last night on cloud services business fundamentals - what are the emerging axioms by which we're going to do business in the cloud in future?