@CloudExpo Authors: Elizabeth White, Liz McMillan, John Mertic, Pat Romanski, Carmen Gonzalez

Related Topics: Containers Expo Blog, @CloudExpo

Containers Expo Blog: Article

An Introduction to Cloud Computing and Business Model Disruption

How will cloud computing disrupt your business model?

Gray Hall offers his insights about the critically important question we’re asking: how will cloud computing disrupt your business model? We start by defining a basic yet useful framework for understanding business models; this framework applies to businesses of all types and is adapted from Wikipedia

. We’ll look at causes and types of disruption, keeping in mind that disruption can produce both positive and negative change. We’ll also tell you where the money is - i.e., the areas which offer the most promise in terms of business opportunity and profit.

In his introductory post, Steve mentioned that when we were at VeriCenter we became aware of a new sort of challenge facing our industry - from outside entrants like Amazon.com who were beginning to grow their cloud storage and cloud computing businesses, leveraging internal web-based infrastructure. We knew then that cloud storage, as a significant part of an overall cloud computing strategy, was going to change our business and yes, our entire industry. Now we see new entrants like Google and Microsoft, as well as veterans like IBM and Sun, EMC, and Cisco are all delivering cloud-based offerings that are redefining the hosting and SaaS markets.

So here's the question we're asking: how will cloud computing disrupt your business model?

To answer this question, we start by defining a basic yet useful framework for understanding business models; this framework applies to businesses of all types and is adapted from Wikipedia:

Let's look at the nine components of the business model framework, and describe each one briefly.


  • Core Capabilities: The capabilities and competencies necessary to execute a company's business model. These include your key people, processes and technologies.
  • Partner Ecosystem: The business alliances which complement your capabilities.
  • Key Processes: The key activities (sometimes proprietary) which create the product or service you offer.


  • Value Proposition: The compelling benefits your customers receive from buying your products and services.


  • Customer Segments: The target audience for your products and services.
  • Distribution Channel: The means by which a company delivers products and services to customers. This includes the company's marketing and distribution strategy, and may involve a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user.
  • Customer Relationship: The links a company establishes between itself and its different customer segments.


  • Cost Structure: The nature of the expenditures required to run your business, particularly considering whether costs are fixed or variable in nature, and whether they are capital of operating expenses.
  • Revenue: The way a company receives payment from customers.
  • Profit: The degree to which your revenue exceeds your costs, of course!

Going forward, we'll apply this generic business model framework to four specific industries we expect to experience business-model disruption from Cloud Computing:

  • IT hosting and disaster recovery companies
  • SaaS and Application Providers
  • Telecoms, and
  • Managed Service Providers.and VARS

We'll look at causes and types of disruption, keeping in mind that disruption can produce both positive and negative change. We'll also tell you where the money is - i.e., the areas which offer the most promise in terms of business opportunity and profit.

Your feedback and comments are welcome as always. More on this topic at: www.cloudstoragestrategy.com

More Stories By Steve Lesem

Steve Lesem is President/CEO of Mezeo Software. Previously, He was Senior Vice President and Chief Marketing Officer of the managed hosting provider VeriCenter. He has also served in leadership positions at SafeNet, BMC Software and IBM. Steve holds a Bachelor of Science from the University of Texas at Austin. He is the primary author of the Cloud Storage Strategy Blog (www.cloudstoragestrategy.com), which frequently sees posts picked up by publications in the IT services and Web hosting spaces.

@CloudExpo Stories
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...