It suggests that traditional competitive business strategies encourage exactly that, going head to head with your competitors and bashing it out, whereas a blue ocean strategy is instead about focusing this effort on creating entirely new markets where you have no competition, achieved through new 'disruptive' innovation that also brings with it lower costs.
Despite the name Cloud Computing actually represents a clear blue sky of opportunity in the same way, a huge blank canvas upon which new products and innovative ideas are yet to be drawn. The scale of IT innovation it will drive will be quite breath-taking, and for organizations like telcos and web hosting providers who operate the underlying technologies it offers an associated level of potential growth for their products.
In the recent Cisco cloud white paper they state that:
"Many enterprise-focused service providers have an opportunity to create higher-value, differentiated service offerings. They have unique capabilities they can leverage, including customer relationships, physical assets and operational excellence."The fundamental business and technical value of Cloud computing is that it defines and creates a new layer of computing, one that sits in between the application and the underlying infrastructure it operates on, so that they can more dynamically manage the relationship between the two.
This is the layer that will sit atop these telco assets and enable an entirely new suite of next generation Cloud products. A simpe example is Rackspace: they have deployed Cloud systems and from this offer products like Sites, Servers, and Files.
https://cloudcomputing.sys-con.com/node/1480308
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