Cloud

Published on June 2016 | Categories: Documents | Downloads: 42 | Comments: 0 | Views: 229
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Supplier Power There are many potential customers amongst SMEs and few dominant suppliers (such as Google and Amazon), and the suppliers integrate in positioning themselves in the marketplace. That is the reason the bargaining power of suppliers is high, and this is very clear from terms and conditions ( T&C ) drafted much more in the su ppliers favour in the buyer-supplier relationship. Buyer Power If the cloud computing products become standardized, large driver for this being the regulatory compliance with the law, and there are more emerging suppliers o f cloud computing, the bargaining power of the buyers will definitely go high bu t this will still depend on the size of the buyer enterprise. Since many of the players in cloud computing segment are mega corporations, the bargaining power o f small business segment customers is extremely low. But in the enterprise segme nt, the customers themselves are mega global corps and have a lot more bargainin g power in which case suppliers like Google, Microsoft and Amazon have achieved a healthy dominance in the market due to their innovation rather than abuse of c ompetition.

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