Market Potential of Cloud Computing Essay
It is not merely the present nonuser but also the potential consumer so that maximum possible demand is achieved. 3. The geographic area for which market potential is to be determined should be well-defined. 4. There should be a clear understanding about the product & service for which the market potential is to be estimated. 5. The time period for which market potential Is estimated should be specific. 6. Finally, a clear understanding of environmental & competitive conditions relevant in case of a particular product or service is also necessary.
It is important to remember that the estimated market potential sets an upper boundary on the market size and can e expressed in either units and/or sales. Market potential consists of the upper limit of total demand which would theoretically be converged on at (infinite) rise of marketing expenditures of all relevant providers (see figure). Why Market Potential Analysis? Estimating the market or market potential for a new business or business expansion is critical in determining the economic feasibility of a venture.
Estimating the market potential for a business is critical in evaluating its viability and provides an estimate of the maximum total sales potential for a given market. Estimating the market
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Hence market potential and sales potential are different. Formula for Estimating Market Potential Estimating the market potential for a business requires specific information on the number of people or potential buyers, an average selling price, and an estimate f consumption or usage for a specific period of time. Once this information has been collected, it can be plugged into the following formula to derive the estimated market potential.
PM = Where PM= market potential N = number of possible buyers P= average selling price Q = average annual consumption Estimating Market Potential Check-List This check-list will address a number of questions that need to be answered before an estimate can be calculated. 1. What type of customer will buy the product or service? 2. Where are these customers located? 3. How many potential customers (N) are there? 4. How often do they consume or use it? 5. What is the Competition? 6. What are people paying? 7. What is the Potential for the Market to Develop? 8. What is my share of the Market? . Target Market One of the most important components of estimating the market potential for a business is to determine its target market. A target market can be thought of as the customers who are most likely to buy from you and generally are described using demographic variables (gender, age, education) as well as cryptographic variables (lifestyle and belief system variables). In many cases, a business may have more than one target market. Think about the automobile industry, automobile manufacturers eave a number of target markets, I. E. , truck buyers, luxury car buyers, economy buyers.
A business should be able to develop p specific-ICC profiles for each of its target markets using demographic and cryptographic variables. 1. Set of demographic variables include Age, Marital Status, H Income, Gender, Race/Ethnicity, Family Life ICY, Education, Religious, and Affiliation. 2. The second profile is referred to as cryptographic lifestyle and describes your target market segment by their activities (work and leisure), interests profile is more important in predicting future patronage than the demographic refill because it will determine what type of experience they are seeking.
The following are a few psychological descriptors: Political affiliation, socially conscious, Cutting-edge, Family-oriented Conformist, Power-wielding, Trend follower, Thrill seeker, Green, Fun-loving, Fashion-forward, Sports enthusiast. It. Market or Trade Area The market area can be thought of as the geographic area where the business in tends to operate, I. E. , a city block, between the rivers or the globe. Defining the market area is important because it defines the geographic area where potential consumers live and/or work.
There are a number of ways to define a market area, some are easy and others are more difficult and require the services of a marketing professional. A market area is generally defined by geography, radius, trade area or drive-time. 1) The geographical areas include Neighborhoods, Zip codes, City or County Boundaries, Metropolitan Statistical Areas, State (multi state) Boarders, Nation, Continent, World 2) A ring or radius defined market area is performed by creating a circle a specified number of miles from a business location. ) Drive Time Analyses: Drive time analysis is a more sophisticated analysis than the radius analysis as a number of variables are used to estimate the drive time to a given location. Iii. Market Size Once the market area and target market has been defined, it is possible to determine the number of potential customers for your business. This will allow you to estimate the N (number of potential customers) in the market potential equation. This total market potential will typically have to be adjusted downward to account for non- users. Lb.
Consumption or Usage A business need to determine how often its target market segment uses its product or service. This figure will have a significant impact on the estimated market attention. For instance, is the product purchased frequently, occasionally, or infrequently? Obviously the more frequently the product is purchased, the larger the market potential. Products that can be used over a long period of time are purchased less frequently t Han perishable items. As a result, the annual consumption of apples is greater than t he annual consumption of television sets. . Competition Analysis One of the best sources of information is to investigate competing businesses. These businesses can provide a wealth of information that can be used in evaluating the potential for your business. By evaluating how a company markets its business, it businesses are advertising in Southern Living, they are targeting affluent, middle age females. However, if they are advertising in the sports section of a metropolitan newspaper, they are most likely targeting males.
In addition to collecting information on the markets they are targeting, a competitor analysis can reveal packaging preferences, target market information, pricing strategies, distribution channels and marketing strategies. Simply evaluate the products and services your competitor is providing. Are they producing family packs or individual serving sizes of their recessed food product? How are they getting their products to their customers? Are their products value prices or are they priced for the high-end market? Are they focused on convenience, quality or quantity? What type of packaging material are they using? V’.
Pricing A product’s pricing has a direct impact on the bottom line of a business and its success. Therefore investigate what others are charging and what the customer gets at that price when setting your price. Investigate your competition. Are your prices in alignment with theirs? What is the value of your product relative to theirs? Do not be price taker or implement a MME, too’ pricing strategy if your product can be differentiated and offers a higher value than competing products. If your price is too high to compete directly in the market, look for a niche market hat desires your products attributes and charge accordingly. Vii.
Market Outlook The situational analysis can be thought of as a comprehensive investigation into the business environment in which your company will be operating. This analysis will allow you to determine the health of the industry is it expanding, declining or stagnate. This should include an industry overview focused on industry trends and would provide a general review of the industry as well as research into regulatory and social implications that would directly or indirectly impact the demand or perception of your business. One important aspect is to determine if the market is saturated or if there is room for new businesses.
Using the Market Development Index (MDI) it is possible to determine a product’s lifestyle. The formula for estimating this is as follows: MDI = (Current market demand *Maximum Market Potential) * 100 1 . MDI < 33 (Considerable growth potential. High growth market, high prices and basic benefits. 2. MDI 33-67 Growth potential but need to offer more than basic product and compete at lower price. 3. MDI > 67 Mature market, still room for growth but becoming commodity products. Need to have very differentiated products to meet specific customer needs. Iii. Market Share The percentage of a market (either in units or revenue) accounted for by an individual business. This figure is important since it provides insight into how much of the GHz to support the business, then there is a problem. Also, if the number of units need De for the business to breakable financially is known, it is possible to determine what hare of the market williwaw to be captured for the business to achieve this break- even point. Market share information is very difficult to obtain and may need to be estimate during various scenarios.
Application of Market Potential Analysis Market potential analysis offers decision support for specific questions for which such as: 1 . Exploration of potential (target) markets 2. Determination of company locations 3. Evaluation of ideas (screening) 4. Designation of sales areas About Cloud Computing: The term “Cloud Computing” became known by more people after Eric Schmidt, the CEO of Google Inc. Lamed in 2006 in a Search Engine Strategies Conference that Google was going to call its new business model “Cloud Computing”, which allows a ubiquitous access to data and computation in a “cloud” of many servers in a remote place.
In the same year, Amazon. Com announced one of the most important Cloud Computing services by now: the Elastic Cloud Computing (SEC) as part of the Amazon Web Services (SAWS), which made the term “Cloud Computing” into the mainstream then. Cloud Computing is a new subject at both technological and commercial level, therefore various definitions can be found, focusing on different heartsickness of Cloud Computing technology, services, and platform.
The term Cloud Computing is defined as: a parallel and distributed computing environment or service model that enables real-time delivery of products, services and solutions over the Internet or some centralized access points to the clients rather than installed locally on the user’s device. A Cloud environment is a type of distributed system consisting of a collection of interconnected and verbalized computers that are provisioned and presented as one or more unified computing resources and is able to deliver certain Quality of Service (So) to service buyers. Cloud Computing, including a prescript and abstracted infrastructure, fully verbalized, equipped with dynamic infrastructure software, application and SO independent, free of software and hardware installation 2. Compare to that, the definition of Cloud Computing and Cloud environment represents clearly the customer’s point of view rather than technical or architectural requirements.
It is not to say that technical and architectural requirements are not important, but what the customers pay most attention to are the benefits they can get from the technology. For example, a real- mime delivery of products and services is more important than whether the products and services are provided via Peer-to-Peer (POP) network, Virtual Private Network (VPN) network or direct via Internet. It is impossible to study all kinds of products and services “in the Cloud”, even though the market is still at a very early stage.
A detailed review of the current market situation of Cloud Computing and a layered structure of landscape of products and services “in the Cloud” already exists, even for quite a long time: there are services used by normal consumers every day or many times in a day, or example the E-mail services from providers like Yahoo, Google or Microsoft: users do not need to use a specific operation system to get into their mailbox, they do not need to install any specific client software in their local machines to sending or receiving E-mail, and they can log into their E-mail account anytime, anywhere, all they need is a web browser and Internet connection. Cloud Computing, is giving particular focus on enterprise customers, which traditionally build and own their data center as a property, and run and maintain each server and PC separately. Increasingly, computing addresses collaboration, data haring, cycle sharing, and other modes of interaction that involve distributed resources. This trend results in an increasing focus on the interconnection of systems both within and across enterprises.
The emerging Cloud Computing can mean a lot for these enterprises because of its potential in cost saving and technological advances Like many other emerging technologies For Cloud Computing, technologies and concepts include Fertilization, Grid Computing, and Utility Computing. 2. 3 Market structure In terms of market structure of Cloud Computing, there are different forms of transactions, I. E. Owe transactions of Cloud Computing services are coordinated. Typical forms of market coordination include: – The short-term contract, where service users can buy the desirable service any time they want, from an open and ubiquitous market, without or almost without any long- term commitment to the SSP.
This indicates the flexibility by decision-making of both sites as well as the instability of the service contracts; – The in-house transaction, which means the buyers prefer not only to receive the services, but also to own the whole products and infrastructure, therefore gain the whole control of the service activity; – The long-term contract, which is a mixture form between short-term contract and in-house transaction. The long-term contracts are usually based on a certain framework between the SP and the service buyer, and provide the buyer a mixture of standard service and specialized facility. The Long-term contracts link sellers and buyers for a long period into a bilateral monopoly in form of a large-scale partnership, which can last as long as many years, and during which the both sides have strictly defined rights and obligations. 2. Pricing models The price model is important because pricing is usually one of the biggest influencing factors for a business decision. Although still at its early stage of development, Cloud Computing is rapidly getting more and more attentions from excessive reluctance of potential users to migrate and update to new services, or alternatively, to excess demand that they cannot fulfill profitably or scale to meet reliably. Either scenario could be substantially damaging for the development of Cloud Computing. There are many different price models in the business world, and so far, a detailed comparison of different price models from a market’s view was not been drawn.
Nonetheless, it may become a critical influencing factor in the consumer’s decisions about whether and how they want to use Cloud Computing services, because one of the most discussed feature of Cloud Computing is that the users do not need to install the software or applications in every local machines and can use the software as a service, the so-called “Software as a Service” (AAAS) model. Naturally, in such business model, users can be charged based on their actual usage of resources, which is described as the “Pay-as-You-GO’ (PAYS) price model. Interestingly, not every SP in the market chooses the PAYS model by now; instead of that, the traditional Flat Rate model, as well as a Mixture model, which combines certain monthly or annually basic charge (Flat Rate) with a PAYS price schedule (for usage surpassing certain amount) are still very popular.
Therefore, the following price models are chosen as researching objects for this more details about price model used by current service providers in the Cloud Computing market can be found in: – PAYS model: also known as “usage-based price model”, by which the users are charged according to their actual usage of resources. Due to the technical obstacles of billing and accounting, PAYS model for IT services (hardware as well as software) was often discussed, but rarely implemented until recently. Another problem about the PAYS model is the matching between price and costs: the software and computing resources are often regarded as typical information goods, for which the traditional marginal cost pricing method cannot be applied, since the marginal cost of information goods is zero. – Flat Rate model: users are charged a fixed amount per time unit, irrespective of actual usage of resources or applications.
As the simplest and most convenient price model for both sides of market participants, Flat Rate model requires no accurate measurement for billing and accounting, but provides no incentive of optimizing the resource allocation, because the buyers are insensitive to the actual cost of their service/resource requests. – Mixture model: A mixture of PAYS ; Flat Rate models. Users are charged a certain fee for resource usage within a certain period, and under a certain cap, e. G. RSI 200 per month for 500 KGB online storage space. This fee is fixed no matter the 500 KGB storage space is actually used or not. Usage beyond this amount will be charged based on the actual usage then. ) Industry Profile A data center or computer Centre (also decanter) is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It generally includes redundant or backup power supplies, redundant data communications connections, environmental controls (e. G. , air conditioning, fire suppression) and security devices. Large data centers are industrial scale operations using as much electricity as a small town. History: Data centers have their roots in the huge computer rooms of the early ages of the computing industry. Early computer systems were complex to operate and maintain, and required a special environment in which to operate.
Many cables were necessary to connect all the components and methods to accommodate and organize these were devised, such as standard racks to mount equipment, elevated floors, and cable trays (installed overhead or under the elevated floor). During the boom of the microcomputer industry, and especially during the sass, computers started to be deployed everywhere, in many cases with little or no care bout operating requirements. However, as information technology (IT) operations started to grow in complexity, companies grew aware of the need to control IT resources. With the advent of client-server computing, during the sass, microcomputers (now called “servers”) started to find their places in the old computer rooms.
The availability of inexpensive networking equipment, coupled with new standards for network structured cabling, made it possible to use a hierarchical design that put the servers in a specific room inside the company. The use of the term “data center,” as applied to specially designed computer rooms, started to gain popular recognition about this time. Effective data center operation requires a balanced investment in both the facility and the housed equipment. Data center transformation takes a step-by-step approach through integrated projects carried out over time. This differs from a traditional method of data center upgrades that takes a serial and soloed approach.
Our commitment to take total ownership of the project has resulted in a client portfolio featuring some of the most renowned names in industry as well as the young entrepreneur who’s cloud software needs secure, continual hosting. Certified? * The tier 4 certification will be given to the companies who maintain certain standards in maintaining the data center. * The four Standards are: * Electrical * Telecoms * Architectural * Mechanical Electrical: The Company receives power from two different power plants. Ramadan and Sarsaparilla, in which one is Thermal and another is Hydro, so that there is uninterrupted power supply so the servers will be running 2417, without causing the downtime.
Telecoms: It provides carrier neutral I. E. , N+N redundancy so that if there is any internal redundancy in one server and any problem persists it can automatically shift to another server. Architectural: The company architecture is designed on their own. It was designed in such a way that the walls are coated with manganese because if any fire persists it cannot easily enter into the server room, so that we can protect the servers. Mechanical: The Company is maintaining the 4 coolant pairs, so that it doesn’t cause any problem to servers, the coolant is operated for 3 hours continuously and it will automatically shift to other, so that the life time of that can be increased.
Philosophy of COSTS: * Costs commitment to its customer is total ownership where it has developed the capabilities to provide platform level services which includes data center infrastructure, storage, backup, hardware, SO layers, network and security layers as depicted in the diagram. * Costs has developed alliances which cater to the equines application layer for automating the customer business processes, thereby developing the capability of providing end to end custom solutions catering to their unique requirements. This initiative of Costs has been in line with its corporate policy of being a steward to the IT needs of its customers. * Costs is promoted by the 18 year old Pioneer Group which has been building the largest available infrastructure in the DC world, is already into FM and SSL functions. This is but a natural process of amalgamation of Group leadership values.