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

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  • Fershtman, Chaim
  • Gandal, Neil

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.

Suggested Citation

  • Fershtman, Chaim & Gandal, Neil, 2012. "Migration to the Cloud Ecosystem: Ushering in a New Generation of Platform Competition," CEPR Discussion Papers 8907, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8907
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    Cited by:

    1. Lam, W., 2015. "Competiton in the Market for Flexible Resources: an application to cloud computing," LIDAM Discussion Papers CORE 2015034, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Lam, Wing Man Wynne, 2014. "Competition in the Market for Flexible Resources: an application to cloud computing," TSE Working Papers 14-518, Toulouse School of Economics (TSE).
    3. Nicola Dimitri & Ramona Apostol, 2016. "Pricing Cloud Computing Services," Working Papers 2016/13, Maastricht School of Management.

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    More about this item

    Keywords

    Cloud computing; Network effects; Platform competition; Two-sided markets;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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