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Business Model Characteristics for Local IaaS Providers for Counteracting the Dominance of the Hyperscalers

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Part of the book series: Lecture Notes in Computer Science ((LNCCN,volume 11113))

Abstract

The Infrastructure as a Service (IaaS) market is dominated by only a few globally acting hyperscalers. The rest consists of a multitude of smaller providers whose IaaS services are restricted to one country or region. As basic IaaS services have become a commodity, the price has turned into the most important decision criterion for customers. For this reason, the central concern of IaaS providers is to achieve economies of scale. However, because of their marginal size, the locally operating IaaS providers are unable to compete in this situation. Accordingly, a growing market consolidation among the local IaaS providers can be expected within the next years. To compete with the further increase in dominance of the hyperscalers, this paper investigates business model characteristics applying to local IaaS providers. The hypotheses were derived from 21 expert interviews with representatives from 17 cloud providers. Due to the exploratory character of this study, the research approach followed the guidelines of the grounded theory method.

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Floerecke, S., Lehner, F. (2019). Business Model Characteristics for Local IaaS Providers for Counteracting the Dominance of the Hyperscalers. In: Coppola, M., Carlini, E., D’Agostino, D., Altmann, J., Bañares, J. (eds) Economics of Grids, Clouds, Systems, and Services. GECON 2018. Lecture Notes in Computer Science(), vol 11113. Springer, Cham. https://doi.org/10.1007/978-3-030-13342-9_12

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  • DOI: https://doi.org/10.1007/978-3-030-13342-9_12

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