How Cloud Computing Changed Competition
Why should we care about cloud computing?
I don’t think I’ll ever need to use it. However, the cloud is a lot more than meets the eye. In fact, whether you know it or not, you are already benefiting from the cloud. It gives your company the power to perform in a way it couldn’t before. It is the competitive advantage that allows you to focus on the most crucial parts of your business.
When was the last time you saw a Blockbuster? I’m not talking about that cool new action movie you just watched last weekend. I’m talking about the video rental store you used to visit whenever you needed your entertainment fix. You’re probably thinking, “I can’t believe I used to leave the house to get movies.” That is probably because you are usually deep into building your list of movies on Netflix.
So what happened to Blockbuster? Well, it’s pretty obvious. You’re watching it every night. Netflix brought something new to video and was able to change the very way we watch TV and movies. They made movies available to stream online as well as providing a mail service to distribute DVDs to their subscribers.
People could watch programming while waiting for another DVD to arrive in the mail. Viewing was quick and convenient. So how did they do it?
Netflix utilized cloud computing to revolutionize the way entertainment was distributed and consumed. How did the cloud give Netflix the power to take down Blockbuster? Netflix used Infrastructure-as-a-Service, or IaaS, to host its information through offsite servers and use their data storage. This gave Netflix a huge advantage on the market. They avoided spending all of their hard earned money on building their global content delivery infrastructure.
With cloud computing, Netflix was able to not only penetrate a huge market but also win a huge portion of the video rental market. They were able to quickly have the technology to run their business at a great price and effectively won the competition. Cloud computing has changed the way business works and it has become a necessity to compete.
Cloud computing is an incredibly powerful tool for your business. Whatever the size of your business, it allows you to compete within any market. Scare resources like IT infrastructure are now a problem that could be easily overcome by any business. The cloud has grown to fit any technical needs you might have. Netflix utilized IAAS to host its content and deliver it to their customers. Now software is easily available over a cloud and can easily integrate to your business processes. This makes information easily accessible by your company at any remote location with Internet connection.
The cloud has changed competition between businesses. Not taking advantage of it only makes you miss out on the growth opportunities.
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