Comparative Research of B2C Services in Cloud Computing
Date Issued
2012
Date
2012
Author(s)
Jauce, Filip
Abstract
This thesis introduced a comparative research of B2C services in cloud compu-ting. The underlying question of the research was how cloud services providers create
a solid customer base to become profitable. As cloud services include many areas, the author chose personal cloud storage, online games and content on-demand for analysis.
At the beginning, author proposed three strategic models that can be compared in current cloud service market. First model encompassed all individual cloud service providers that focus on one business only and had to build their base from scratch. The second model defined companies that originally manufactured consumer electronics, but started to face lower margins and decided to improve their revenues by offering soft-ware products to its current customers too. At last, the author organized software or internet companies that expanded its portfolio of services to hardware products as third strategic model.
In order to understand cloud computing industry author used TOWS and Five forces analysis and also explained motives behind alliances and M&A’s in the industry. As to creating customer base, the author referred to Crossing the Chasm and Catalyst Code theories. Besides that, profitability and pricing methods of the cloud service pro-viders were researched, while freemium business model proved to be the most popular choice.
As a result of customer base and revenue comparison, Apple exhibited the largest customer base at the time of writing and also the highest revenue. Google, which was researched as model 3, launched its personal cloud storage service also in the same way as companies in model 2. Therefore, strategic model 2 is the most suitable choice for personal cloud storage service customer base establishment. Dropbox, which was market leader until 2012, will have to increase its competitiveness and lower its freemium pricing. Regarding online games, Zynga will have more options to raise revenue than personal cloud storage companies. In terms of content on-demand platforms, Google, Apple and Amazon will be dominant, but there will be opportunity and need for consumer electronics manufacturers to enter this market segment.
Subjects
cloud
cloud services
customer base
Dropbox
Zynga
Google
Amazon.com
iCloud
Type
thesis
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