As the environment for multi screen business is rapidly activated and various network systems are enhanced, many types of services are launched based on cloud system. This sudden boom-up of cloud computing causes alot of people to be confused what the cloud service is and how it will be evolved.
Four Categories of Cloud Services
Although it is difficult to divide the market into detailed types based on its characteristics, there are approximately four types of cloud services. This classification can be very subjective. But I don’t want to classify the cloud computing with the traditional method which is based on concepts of SaaS, PaaS and IaaS.
1. Storage Type
This kind of service provides a storage and data back-up such as photos and other information. Business revenues come from usage fees. Famous business cases are Dropbox, Amazon AWS. This type is assigned as IaaS.
2. Platform and Solution Type
This type includes B2C and B2B services based on a server-stored solution. And these services charge a usage fee to B2B customers. But B2C customers use the service almost for free. There are PaaS and SaaS related services such as Google Wave.
3. Contents Distribution Type
These services are similar to an application marketplace which enables users to upload and download contents. They get profit from distributing contents. P2P sites, YouTube and VOD & MOD services are main examples.
4. Life-log Type
This type is a little bit confusing to assign to a cloud service. The service makes people record a daily experience or take a memo. Most cases are free of charge. And some service providers display advertisements such as Evernote.
And what will be the most important factors to survive in the market?
In my opinion, two factors are needed for success, one is to make a clear service concept targeted to a certain group of customers and the other is to keep enhancing its service.
1. Target Customer and Clear Concept
One of main characteristics of cloud service is usability and mobility. It means that most cloud services are dependent on network environment and device factors. Except for the storage and SaaS type cloud services, it needs to focus on a core function and concept which can satisfy customer’s needs. But after acquiring customers, it is okay to add more functions to its original one.
2. Ceaseless Enhancement
Because many B2C cloud services don’t have a profit source, maintaining a service quality and enhancing its function are not that easy. But if the service provider ignores the traffic issue or customers’ demands, it can cause the company to slack behind rivals. So it is important for starters to invest to their core assets continuously. Recently Evernote updated with its new function called “Share”.
And what will be the ultimate goal?
It is difficult to answer this question. But as many experts have forecasted before, B2C cloud will get profit from information analysis and highly advanced targeting solution while B2B cloud appears to maintain its usage fees for the time being. Conclusively business models of cloud services will develop based on the dual directions of 1) generating and storing database and 2) distributing and sharing information.