Competitive advantage

Must Read

Black Friday – Deal Or No Deal? 5 Ways to Shop Smarter

Are you already on the prowl for Black Friday deals or Cyber Monday sales? We all know that these...

Obama Commission Recommends End to Subsidized Student Loans

The National Commission on Fiscal Responsibility and Reform has issued a report that recommends the elimination of subsidized federal...

The Settlers of Catan Strategy Tips

This article assumes that you played or how the settlers of Catan investment advice Game.Initial important game, this may...

Nikon D7000, Angles, Point of View

Angles Having strong angular lines in your image can add to the composition, especially when they are juxtaposed (Figure 9.4)....

Consider Refinance Mortgage To Avoid Foreclosure

With the aim of lessening their worrying dilemma on imminent foreclosures of their home loans and thus losing their...

How To Shop On Black Friday

The term Black Friday was coined by the Philadelphia Police Department in the year 1966. It was a day...

As I mentioned at the beginning of this chapter, cloud computing first rose to prominence in the IT industry in 2008, at
least with suppliers and the media, just as a financial crisis stunned the world, and I wrote about this coincidence at the time in my blog (Williams, 2008). Then in a later post I speculated on how cloud computing could give smaller companies a competitive advantage in an uncertain financial landscape:

New startups will not find investment easy to find so they will, by necessity, keep costs down and avoid capital expenditure
where possible. These new companies will naturally use pay-per-use, cloud computing technologies, and their staff will more often than not be contractors, working mostly from home. With their established competitors losing money and people, clever startups have a great opportunity to gain market share quickly

As for established companies that were around in the boom years before the credit crunch, they will have to adapt or die,and that means mimicking the business models of startups, writing off old investments and keeping their best people, even as contractors. (Williams, 2009)

Moreover, as was mentioned earlier in this chapter, enterpriseclass businesses are constrained by corporate governance
and internal policies so public clouds are often not a viable option; but smaller businesses usually have no such   strictions. Of course small to medium-sized businesses and enterprises are generally not direct competitors, but if there
are enough new entrants of the former variety into an industry where IT-enabled systems and innovation count, they can eat significantly into an enterprise’s market share. And with the capability afforded by many cloud computing  latforms to quickly develop scalable and feature-rich, customerfocused web applications (and integrated online workflow processes) without having to worry about IT infrastructure, there is great potential for market disruption.

Even in more prosperous times it pays for businesses to be agile, to be able to respond quickly to changes in market conditions and technological developments. The flexibility and scalability that cloud computing affords levels the playing field for businesses of different sizes. Small businesses can now afford enterprise-class IT systems so big businesses had better watch out!


Please enter your comment!
Please enter your name here

Latest News

Digital Marketing for Beginners

Digital marketing for starter, Let to basic learning about connecting with your audience in the right place...

What are 7 things poor people do that the rich don’t?

1. poor people watch TV in which people read books how many hours you spend in front of the TV and when...

Top 18 best small business ideas for beginners starting

A small business can be frightening and requires plenty of careful planning there are many small business ideas which can be beneficial...

Summer that makes you happy

We saw were already here I've been thinking about some of the things. I used to do with my husband even though...

4 Point to helpful tips specifically for caregivers

What you need to take a vacation. I know it sounds impossible creative and try to make it work for you almost...

More Articles Like This