Cloud Computing Business Model

Cloud Computing Business Model, often we hear about this phrase or its shorter phrase Cloud Computing Biz Model. What is exactly this Business Model is? We have described the levels of Cloud Computing – Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS). These are the standard levels, there are many added as a services. We have described many of them in our Cloud Computing section. In various business models, the entrepreneurial activities and revenue generation is defined.

What is this Cloud Computing Business Model actually is ?

There is no standard, universally recognized definition available for Cloud Computing Business Model. Cloud Computing Business Model is a vague terminology, a coined terminology which basically encompass the Software as a Service and Platform as a Service levels offered by different brands like Google Cloud based apps, Zoho etc. So, basically Cloud Computing Business Model points towards a new approach to generate revenue.

As Cloud Computing offers the opportunity to start with zero own IT infrastructure, Cloud Computing Business Model has been a phrase of Advertisements.

Cloud Computing Business Model – Practical Factors and Usage

Cloud Computing Business Model can be viewed from the producers level – for example you own one of the biggest cloud computing infrastructure, with one infrastructure you have the opportunity to generate huge revenue through various diverse business. You can offer various SaaS, PaaS, IaaS. In fact the SaaS can be exploited nicely.

The second view of Cloud Computing Business Model is from the intermediary brand / company’s view. For example, we are running our website on Rackspace Cloud. We can offer various Software as a Service or hosting services at a minimal cost – simply because we have enough “extra resource” in our hand and if we need to increase, it will be increased automatically. A regular web hosting had never been thought to offer such a scope – Cloud Computing Business Model is here.

In either of the above described views – the ultimate target is to generate revenue by supplying service on demand at a fraction of cost over the traditional. Some example will clarify the Cloud Computing Business Model – think of Google App Engine or Google Docs – take that, you are using the free service. Microsoft never gave you Office free of cost, but you are getting now for free. Subsequently, you might find that your small app running on Google App Engine is generating some revenue in some way or another, you will need to shift to the paid model. This can be an example of Cloud Computing Business Model.

Now, think of Google Docs – your office do not need to buy Microsoft’s office anymore. Other than paying for the License, new version of MS Office needs some extra investment for the older PCs, but with Google Docs you will need no upgrade. So, your small business can now increase the net profit by decreasing the burdens. Here the Cloud Computing Business Model for your own business starts.