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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 up. That world is one of “Streaming Content to Any Device, Anywhere and at Any Time“. And increasingly this is the world of today as opposed to the world of tomorrow.

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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.