On Cloud Computing Business Models

Last month I wrote a weekly post on the technology industry noting that the paradigm shift to cloud computing is in full swing. The most important facet of cloud computing in terms of business model disruption is its effects on platform stickiness and network effects. Basically, the cloud reduces them and means many incumbent businesses with barriers to entry in their existing model will find themselves disintermediated.
Here's the 30,000 foot view. In technology, the phase transitions in computing have taken place predominantly because of advances in four areas: processing speed, network bandwidth, storage costs and form factor mobility. As computers have become faster and more mobile and as storage space and bandwidth have become cheaper and more plentiful, a whole new world has opened ...

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