The Economics of Cloud Computing
AbstractThe paper examines the economic impact of the diffusion of a new technology as cloud computing. This will allow firms to rent computing power and storage from service providers and to pay on demand, with a profound impact on the cost structure of all the industries, turning some of the fixed costs into marginal costs of production. Such a change will have a substantial impact on the incentives to create new business, and through this, on investments and macroeconomic growth, job creation in all industries and job reallocation in the Information and Communications Technology (ICT) sector, and public finance accounts, through the direct impact on the public sector spending and the indirect one on the tax revenues. The paper investigates the consequences of the diffusion of cloud computing on market structures and competition, and tries to disentangle the above-mentioned aspects with a particular focus on a simulation run for the European economy.
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Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Managerial Economics.
Volume (Year): IX (2011)
Issue (Month): 2 (May)
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- Anastassios GENTZOGLANIS, 2012. "Evolving Cloud Ecosystems: Risk, Competition and Regulation," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(85), pages 87-107, 1st quart.
- Andrea RENDA, 2012. "Competition, Neutrality and Diversity in the Cloud," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(85), pages 23-44, 1st quart.
- Chaim FERSHTMAN & Neil GANDAL, 2012. "Migration to the Cloud Ecosystem: Ushering in a New Generation of Platform Competition," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(85), pages 109-123, 1st quart.
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