Migration to the Cloud Ecosystem: Ushering in a New Generation of Platform Competition

Chaim Fershtman (fersht@post.tau.ac.il) and Neil Gandal

No 8907, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Cloud computing is defined to be Internet based computing technology, where the term 'cloud' simply means Internet -- and cloud computing refers to services that are accessed directly over the Internet. There are essentially three categories of cloud computing. (i) Iaas (Infrastructure as a Service) -- number crunching, data storage and management services (computer servers), (ii), SaaS (Software as a Service) -- ?web based? applications, and (iii) PaaS (Platform as a Service) -- essentially an operating system in the cloud. Much of the attention and literature has focused on the revolution in Iaas services provided via the cloud. Despite the major changes in technology in IaaS services, estimates indicate that more than 90% of the cloud computing market (in terms of revenues) will involve (virtual) operating systems and applications software services (i.e., PaaS and SaaS services.) In this paper, we examine how several key economic factors will likely affect competition in SaaS/PaaS services in the cloud.

Keywords: Cloud computing; Network effects; Platform competition; Two-sided markets (search for similar items in EconPapers)
JEL-codes: L13 L86 (search for similar items in EconPapers)
Date: 2012-03
New Economics Papers: this item is included in nep-com, nep-ict and nep-net
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Migration to the Cloud Ecosystem: Ushering in a New Generation of Platform Competition (2012)
Working Paper: Migration to the Cloud Ecosystem: Ushering in a New Generation of Platform Competition (2012)
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