Session Preview: How does Cloud Economics Affect Digital Transformation?

Dr. Owen Rogers, Research Director, Digital Economics will be presenting at both of our upcoming Cloud Computing Executive Summits – March 8 in New York and April 5 in London. In his session, “How does Cloud Economics Affect Digital Transformation?” Owen will explore the latest findings of the Cloud Pricing Index and breakdown many of the Digital Transformation myths prevalent in the industry today. Below, Owen gives us a preview of what he’ll discuss.
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'Uberification' - the cloud as an agent for digital transformation

'Uberification' - the cloud as an agent for digital transformation
Analyst: William Fellows

Uber has revolutionized the experience of calling a cab. Open the app, choose the service, and use it. And Uber's not alone. Hailo, Lyft and others have similar services – it's disruption on an industry scale. Now, as the 'Uberification' of industries and work forces continues apace, we examine how the cloud industry can emulate or take advantage of Uber's model to increase the rate of adoption and to cement the role of the cloud as an agent for digital transformation. After all, Uber and its peers, as well as disruptors across the industry, are taking advantage of the cloud and cloud applications to innovate and digitally transform industries.

We believe that enterprise users, as consumers of third-party IT services and providers of services to their own IT staff, should be able to enjoy the same experience in service selection or delivery. The keys to Uberification are the user experience, the service model and business-model innovation. It is consumption-based, service-driven and on-demand, with a retail-model discipline. Sound familiar?
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Does a cloud price war risk providers' profits?

If you believe the headlines, public cloud providers are in the midst of an aggressive war where margins are being slashed and profitability is at risk. But data from the Cloud Price Index shows that although some services are being reduced in price, across whole portfolios very little has changed; the cost of our application has dropped just 2.25% in 10 months. Although compute has reduced about 4% in price since October, no reduction has been seen in management, PaaS, big data or storage. Considering 50% of the CPI specification's cost is on databases, there are still opportunities for providers to make profits even with declining prices (and margins) on compute. End users can make greater savings by committing: best-case pricing has reduced 12% since last October.

Download the full report here!
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