The Competitive Landscape

The size of the cloud services market providing both storage capacities and computational processing capabilities to companies and to corporates is estimated by 45 billion USD per annum and it steadily grows. The market is dominated by four major players: AWS, Google Cloud, Microsoft and IBM - all utilize central and less trusted storage and computation facilities. Due to their oligopolistic dominance, the four providers of cloud services set high pricing levels. These providers are also capable of hampering any competition and preventing new market entrants from competing with them, due to the broad scale of their operations and their substantial investments in data centers, servers and storage facilities.

The Industry leaders

The cloud computing industry ranges back to the 1990s. It is dramatically growing throughout the past decade. Although the cloud computing industry is not small, many of its competitors are small to midsize companies. There are nearly 200 ecognized cloud computing providers given that include large companies like Amazon, Red Hat, IBM, Oracle and Microsoft that have a fraction of their organization broken down into multiple divisions offering different cloud computing platforms. Microsoft has three major divisions in cloud computing, including Microsoft Azure, Azure Web Services and Microsoft 365. Other companies, such as Cloud.bg, Cloud Sigma and GoGrid largely focus on cloud computing but make up a smaller percentage of the market by revenue.

Amazon, mainly known for its online shopping platform, has its own cloud computing division - Amazon Web Services (AWS). AWS was ranked as a 2014 top leader in Infrastructure-as-a-Service by the Computer Business Review. The division started in 2006 and made a profit of $99 million by the end of its first year. In 2013 the company’s revenues exceeded $1.69 billion and over $2.5 billion by the end of 2014. Red Hat is another major provider in open sources cloud computing solutions and a top Platformas-a-Service provider. During its 2014, Red Hat generated revenues of over $1.53. The major software provider Microsoft has generated $156 million over 2014 through its public cloud IaaS or Infrastructure as a Service. Microsoft is also considered as one of the top IaaS provider for 2014 and is a major competitor against Amazon Web Services. In 2014, Google, a company that earns a majority of its $40+ billion in revenues through advertising, generated $66 million from its cloud services. Google was recognized a top cloud storage provider in 2014. Oracle reports that its cloud revenue has increased by 30% in their first fiscal 2015 quarter. It generated $475 million in revenues from its Software-as-aservice and Infrastructure-as-a-service offerings.

The growth of software development, infrastructure, security and storage solutions contributes to the demand for cloud-based storage, security and data processing solutions. According to Forbes, Gartner estimated that by 2016 nearly 50% of the world’s largest enterprises invested in cloud computing solutions, making it the bulk of worldwide IT expenditure. It also estimated that companies worldwide spent over $3 billion on cloud based security service solutions alone. That is $1 billion more than what companies spent in 2013 for similar cloud based solutions. As the cloud computing industry continues to thrive off companies investments and expand, opportunities for growth and new entries will continue. In the past five years, companies as Boundary, Couchbase, Cloudkick, Dotcloud, Fluid Info, Open Stack and Tidemark joined the market and since then continue expanding.

The Scope of competitive Rivalry

The cloud computing industry is varied and nuanced with each competitor offering niche services. Depending on what the consumer trend will be over the long run, many of these offerings will probably be phased out. Google, Microsoft, Red Hat and SalesForce are the predominant organizations that offer cloud based enterprise solutions.

  1. Amazon Web Services (AWS)

    In 2006, Amazon Web Services (AWS) began offering IT infrastructure services to businesses in the form of web services, now commonly known as cloud computing. One of the key benefits of cloud computing is the opportunity to replace up-front capital infrastructure expenses with low variable costs that scale with your business. With the Cloud, businesses no longer need to plan for and procure servers and other IT infrastructure weeks or months in advance. Instead, they can instantly spin up hundreds or thousands of servers in minutes and deliver results faster. Today, Amazon Web Services provides a highly reliable, scalable, low-cost infrastructure platform in the cloud that powers hundreds of thousands of businesses in 190 countries around the world. AWS offers low, pay-as-you-go pricing with no up-front expenses or long-term commitments. AWS provides a massive global cloud infrastructure that allows you to quickly innovate, experiment and iterate. Instead of waiting weeks or months for hardware, you can instantly deploy new applications, instantly scale up as your workload grows, and instantly scale down based on demand. Whether you need one virtual server or thousands, whether you need them for a few hours or 24/7, you still only pay for what you use. AWS is a language and operating system agnostic platform. You choose the development platform or programming model that makes the most sense for your business. You can choose which services you use, one or several, and choose how you use them. This flexibility allows you to focus on innovation, not infrastructure

  2. Google Cloud

    Google will continue to be the most utilized search engine and search analytics provider in the world. With the adoption of niche services and platforms Google can capture a slice of the growing cloud computing market. Google's large installed base (it claims 30,000 paying customers) consists of many small Web innovators and some very large Web business sites. The vendor also claims that over 90% of its internal IT runs on App Engine. The practice of the internal use of App Engine, as well as the App Engine experience of supporting the high number of isolated tenants, sets the stage for Google's enterprise campaign. Google's outstanding reputation as a cloud services provider and an early big data innovator lends credibility to Google App Engine.

    Google Cloud Storage is a flexible, scalable, and durable storage option for virtual machine instances. Users can write files to Cloud Storage buckets from almost anywhere, can use buckets as common storage between instances, Google App Engine, on-premises systems, and other cloud services. If Cloud Storage buckets do not meet performance and latency requirements, user can use Cloud Storage in combination with other instance storage options.

  3. Microsoft Azure

    Microsoft has dominated the private and public sectors’ productivity software. The introduction of Azure demonstrates Microsoft’s focus on the future of cloud computing. Microsoft's offering, Windows Azure, has evolved into an environment that supports IaaS and PaaS models. The vendor's approach is to focus on a "cloud first" push toward frequent updates and an aggressive approach to features and enhancements. Its long-term goal is to deliver the full range of .NET application infrastructure capabilities as Azure services. Its capabilities include its SQL Database as well as messaging middleware services (Windows Azure Service Bus), in-memory data grid services (Windows Azure Cache) and Windows Azure BizTalk Services. It has also recently added Windows Azure Mobile Services, a cloud mobile back-end service offering that supports multiple clients beyond its own mobile client strategy. Its presence in other cloud environments (for example, SaaS through Dynamics CRM Online and Office 365, including SharePoint Online) also contributes to the vendor's broad cloud strategy.

  4. IBM Cloud

    When it comes to public cloud computing vendors, IBM doesn't always enjoy the same mindshare as Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform. However, some analyst reports have claimed that IBM actually has a larger share of the infrastructure as a service (IaaS) and platform as a service (PaaS) market than Google. Other analyses place it solidly in fourth place behind the "big three." Either way, IBM is one of the largest cloud computing providers on the planet. Telling the story of IBM's public cloud computing capabilities is complicated by the fact that IBM uses a lot of different brand names for its cloud services. The "IBM Cloud" label is an umbrella categry that encompasses its hardware, software and services for helping enterprises build private clouds, as well as its Bluemix public cloud services. The "Bluemix" name used to be reserved for IBM's PaaS services for developers, but now Bluemix also offers some IaaS services. In addition, IBM has another IaaS service called SoftLayer. Organizations can still purchase cloud computing services under the SoftLayer brand name, but IBM seems to be migrating toward the Bluemix brand.

  5. Red Hat

    Red Hats collaboration with the open source community gives the organization an advantage to the newest innovation. Finding practical applications and monetizing these innovations is a difficult task. Red Hat is a leading provider of the open-source Linux OS technology and the open-source JBoss family of middleware products. The vendor has utilized these to enter the market with its high-control, cloud-based, shared-OS OpenShift Online offering, and also offers an on-premises CEAP called OpenShift Enterprise, which can be used by IT organizations to create a private Platform as a service (PaaS) environment.

  6. Salesforce.com

    Salesforce continues to make strong gains in the software as a service (SaaS) and the platform as a service (PaaS) markets. Salesforce.com has been a pioneer in the cloud computing industry offering a market-leading SaaS since 1999 and a market-leading PaaS since 2007. Force.com, a cloud-native, high-productivity, shared-everything cloud platform service remains their star cloud computing platform.

    The scope of competition in the cloud computing market is vast and each organization has their own proprietary offering to sway consumers. What consumers will inevitably settle on is a cloud computing service that affords the purchaser data security while delivering performance

Customers

Thanks to the large amount of cloud service provider companies of any size can deploy a scalable cloud solution. According to Forbes, Oracle alone has over ten thousand customers with twentyfive million users. To scale the customer base, Oracle has over ten thousand customers, yet it does not fall on Right Scale’s Top Ten List of Public Clouds Used. Amazon Web Service is the top public cloud provider for both enterprises and small businesses. Amazon Web Services has nearly 200,000 customers in 190 countries world-wide. Some of Amazon’s largest customers include HTC, Expedia, Pinterest, Comcast, the Food and Drug Administration and even the National Aeronautics and Space Administration. VMware has over 500,000 customers including the Fortune 100 companies making VMware’s vSprere/vCenter the top private cloud used for both enterprises and small businesses. Other top private cloud providers including: Red Hat, Microsoft and Citrix have thousands of customers worldwide.

Ease of entry: exit

The ease of entry and exit in the cloud computing industry is based off the entry into the IT industry. Cloud computing is still being improved by many IT companies to condense processes as appose to pre-cloud computing. In addition, it is difficult for one to enter. The difficulty of entry into the industry is due to major companies, such as Red Hat, Google, Amazon, and especially Microsoft, being around for quite some time as well as being the major technology innovators in the IT industry; along with that, it possess many barriers for one to enter into the IT/cloud computing industry. One must have a strategic business analysis, investment requirements, patents, knowledge assets, etc., and the competitive edge to compete with other IT companies. It is hard for one to enter the industry. Some start by building a small IT base company to build software/web applications through the technologies being introduced such as the cloud. Others are created as integration services providing support for integrating other companies’ platform onto another platform such as the cloud for better processes and work flow. This allows most start-ups to ease into the IT/cloud computing industry. It makes it much easier to gain private investment and build up the company’s portfolio by doing so. However, this takes away the expansion of the cloud computing industry as many small companies are offering or providing better support for integration, software products and, rarely, resources.

Competitive Edges

All the competitors of IAGON (besides Sonm) base their operations and offerings on centralized storage and processing. IAGON, however, is going to revolutionize the cloud and web services market by offering storage and processing services that are based on a decentralized grid. By joining the unused storage capacity of servers and personal smart devices and their processing power, IAGON will create a super-computer and a super data center that can generate massive volumes of storage and processing power and will compete with any of the current cloud computing companies. IAGON has the following competitive edges over its competitors:

  • IAGON revolutionizes the cloud industry by providing a fully secure and decentralized cloud storage and processing platform based on Blockchain technology.
  • IAGON is a platform for harnessing the storage capacities and processing power of multiple smart devices over a decentralized Blockchain/Tangle grid.
  • IAGON enables to store big data files and repositories, as well as smaller scales of files, and to carry out complex computational processes, such as those needed for AI and machine learning operations, within a fully secure and encrypted platform that integrates Blockchain cryptographic and AI technologies in a user-friendly way.
  • IAGON is powered by Artificial Intelligence to connect users to services and decentralized applications.
  • IAGON has easy to use features and functionalities synced across all smart platforms for all types of users – from individuals to full blown enterprises.
  • Under IAGON’s platform, one can imagine a world where anyone can profit by joining its massive processing and storage grids.
  • IAGON will launch a crypto-token system that enables users of the storage and processing grids to pay for services that they consume, while those who contribute their resources to the grids benefit from these tokens.
  • IAGON tokens can be traded and converted to fiat money via cryptocurrency exchanges.
  • IAGON provides 24/7 operation of the storage grid, processing grid and the Blockchain.
  • IAGON provides users with a friendly platform.
  • Trusted, integrated decentralized applications on a single platform for every type of user, from Fortune 500 companies to SMEs.
  • Users can create their own smart contracts on a simple to use interface, without writing any line of code.
  • Miners generate revenue on IAGON’s platform by sharing their smart device or servers free resources of storage and computing power.
  • Integrated cryptocurrency wallets help manage transactions across different decentralized applications.
  • The storage and the processing are fully protected by encryption on the Blockchain and therefore they are 100% secure and resistant to hacking.

Swot Analysis

Cloud computing promises significant opportunities for growth, if inimitable services are provided at low costs. The market research and analysis reveals that there is tremendous growth potential in the market and IAGON will penetrate it at a fast pace. The market and business analysis shows that this business is secure and presents profitable investment opportunities. To determine a strategic planning that would best benefit to the IAGON, the SWOT analysis presents the various aspects of the business. More importantly, this analysis serves as the groundwork to back up and steer the marketing efforts valuable to the business.

Internal

Strength Weakness
Presently, there are no direct competitors of IAGON, as they are offering centralized storage and processing, whereas IAGON is going to offer decentralized storage and processing. IAGON is new in the market, while many cloud computing companies are already there - especially the four big companies i.e. Amazon Web Services (AWS), Google Cloud, Microsoft Azure, IBM Cloud. It will take time to penetrate in the market and to realize the customers that IAGON offers unique services that are different from its competitors.
IAGON will create a super computer by joining unused storage capacity in servers and personal smart devices and their processing power. Heavier marketing and advertising expenditures and efforts are required to create awareness.
IAGON is going to revolutionize the cloud industry through fully secure and decentralized cloud storage and processing platform based on Blockchain/tangle technology.
IAGON will store big data files and repositories, smaller scales of files and will carry out complex computational operations.
IAGON will provide a fully secure and encrypted platform using the Blockchain’s cryptographic power, Artificial Intelligence technologies, and will eventually implement the innovative Tangle technology.

External

Opportunities Threats
Cloud Computing is the most prominent technical innovation in IT and it will continue to grow in demand and in capabilities in the coming years. Cloud Computing is an innovative technologygrowing at fast pace. The market is already moving towards intense competition of cloud service providers, and new entrants can easily join it. The existing large companies, i.e. Amazon Web Services (AWS), Google Cloud, Microsoft Azure and IBM Cloud, may also offer services similar to IAGON’s at lower prices. If this situation prevails, it may lead to stiff competition.
Organizations increasingly demand public clouds to address their scalability requirements. This trend creates tremendous growth opportunities for companies like IAGON. The number of cloud computing, Big Data and Blockchain companies’ increases with a fast pace all over the world. This increasing trend may decrease IAGON’s market share.
It is predicted that 24% of the total IT market will be cloud based by 2020 as it increases at 19% CAGR.
The use of Big Data becomes crucial for leading companies to outperform their peers and creates new growth opportunities for data storage and processing companies.
In the next 5 years AI will exceed its development in the past 50 years with many opportunities emerging in this field.
AI is being considered the next digital frontier.
The Blockchain technology emerges as a business focus for many companies in multiple industries and creates marvelous growth opportunities for companies associated with the Blockchain technology.