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?

  • 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!

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