The latest Gartner estimate of infrastructure as a services market share is in some respects unexpected. The other major providers are growing faster, but Amazon Web Services continues to hold the lead.
Were IaaS the only element of cloud computing, we might conclude that the basic market structure already is set, and unlikely to change. Stablle competitive markets have a characteristic structure.
Bruce Henderson, founder of the Boston Consulting Group is credited with a couple of foundational ideas about business, including the notion of the experience curve, which explains how the cost of products decreases with volume.
The “classic” stable pattern would have market shares where the market leader had twice the share of number two, which in turn has twice the share of provider three. Some might refer to that as a “rule of three.”
“Costs characteristically decline by 20 percent to 30 percent in real terms each time accumulated experience doubles," Henderson posited in 1968.
Some note there is a similar return on sales and market share relationship. Also, others note that market share and return on investment also seem to have similar relationships.
source: Marketing Science Institute
Were IaaS the only part of the cloud computing as a service market, we might well conclude that the market share pattern is set, and is unlikely to change.
Of course, there are other key products, such as platform as a service, software as a service and private hosting. Even considering the fuller range of products, the market share structure is approaching a stable 4:2:1 pattern.
source: TechTarget
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