How Cloud Computing Technologies are shifting the basis of Competitive Advantage

Disruptive
Cloud Computing technology stack of Services (CCS)
innovation at the Benefits: scalability, immediacy, pay-per-use
Infrastructure EX: Amazon Web Services
level...

Innovative, third-party
Existing and generic applications built using CCS and
Industry-specific applications
...spurs incremental applications moved to CCS to served either from it or transferred
built in-house using CCS.
and disruptive benefit from cost-savings and in-house, and focused on a
innovation at the performance-gains. specific activity or task. Usually
EX: Financial modeling, Business
innovative.
Applications level... EX: Microsoft Hosted Services
Intelligence, Seismic Processing.
EX: SlideRocket

Better Execution New capabilities

Use CCS distributed economies of scale to improve Use CCS to either:

...which enable execution performance. 1) create in-house industry applications not possible or
Competitive cost-effective without CCS
IT main actor involved, infrastructure level, little 2) implement innovative business models or structures,
Advantage management disruption needed to succeed. based on a host of third-party applications enabling
creation... new capabilities

Joint IT/Business effort, disruption required to succeed.

...at different levels,

and variable Global Industry Firm
sustainability.
Difficult to replicate Easy to replicate

CORE
EDGES May 09 - Link to accompanying post