The notion that the cloud is taking over the world has got to be tempered. I was recently at a conference where most of the CXOs admitted that they don’t know how it will impact them. They’re not thinking about 5 years later - they’re thinking now.
Most people who understand the cloud and have done stuff in it are very clear that when it comes to IT infrastructure and software as a service, it’s quite obvious how the cloud can benefit. However, it’s when it comes to everything else including data, services, processing etc on the cloud, the majority view is that it won’t happen in a hurry across the board.
Standardization is a big question – how are we going to get on the cloud standardization across companies when many are not standard even within!! The best that could possibly happen is a private customized cloud. I am referring to large global corporations.
However, when it comes to mid-sized companies, or start ups the argument changes. It’s likely that the cloud will allow these mid sized enterprises to “leapfrog “ , get ahead of the larger ones as they have fewer constraints and legacy. Emerging market companies can now be structured very differently and designed better for their business from day one as compared to a more evolved large global corporation. They can be set up to leverage the cloud and standards from day one …. And that could mean a huge competitive advantage!!
Industry after industry will see the rise of brand new companies who have a killer product or service and because they will structure themselves differently from the beginning, they will have a massive edge over the others in terms of go-to-market speed and flexibility as well as in terms of a cost structure that would rival if not be better than a large corporation with huge scale.
Does that mean that the cloud allows mid sized companies to compete with large corporations? Does scale become less relevant because of the cloud?
For instance, we all know emerging market companies in the wireless market that are structured differently and fast becoming global competitors in the wireless space with global standards. They often have the unique combination of the lowest prices in the entire world, at the highest profit for themselves with better service for their customers!!
Think about companies that structure themselves from day 1 to only focus on design, product and customer interface and ownership - everything else is done through an ecosystem they’ve built which allows for flexibility and speed and scale leverage from day 1 and variability from day 1 .
So to me the Cloud could mean if not demise at least reduction of scale advantage in some industries and a further boost to emerging market cos with global ambitions!!