By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    data science anayst
    Growing Demand for Data Science & Data Analyst Roles
    6 Min Read
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: When Your Cloud Platform Becomes Your Competition
Share
Notification Show More
Latest News
SMEs Use AI-Driven Financial Software for Greater Efficiency
Artificial Intelligence
data security in big data age
6 Reasons to Boost Data Security Plan in the Age of Big Data
Big Data
data science anayst
Growing Demand for Data Science & Data Analyst Roles
Data Science
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
ai in omnichannel marketing
AI is Driving Huge Changes in Omnichannel Marketing
Artificial Intelligence
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > IT > Cloud Computing > When Your Cloud Platform Becomes Your Competition
Cloud ComputingCommentaryHardware

When Your Cloud Platform Becomes Your Competition

paulbarsch
Last updated: 2012/09/04 at 5:39 PM
paulbarsch
4 Min Read
SHARE

As more companies turn to cloud computing, social media and online selling platforms to avoid spending budgets on infrastructure, it is also likely that they are sharing a key business enabler—behavioral data. So what happens when your cloud-based provider shifts from providing infrastructure or a platform for your business to actually competing with you?

As more companies turn to cloud computing, social media and online selling platforms to avoid spending budgets on infrastructure, it is also likely that they are sharing a key business enabler—behavioral data. So what happens when your cloud-based provider shifts from providing infrastructure or a platform for your business to actually competing with you?

Online business Zynga understands while they develop games such as Farmville, Mafia Wars and others that run on Facebook’s platform, it’s also not far-fetched that Facebook could get into the profitable business of gaming.  In fact, Zynga is turning away (though not completely) from Facebook to also support games for Google plus and other social/mobile platforms.

That’s also because there’s nothing that prohibits Facebook from doing exactly what Zynga does – making great games. As a Forbes article points out while the relationship between Facebook and Zynga is currently symbiotic, “There are many things Facebook could do to damage Zynga’s business such as limiting the Facebook access of game developers, modifying Facebook’s terms of service, giving more favorable treatment to Zynga’s rivals and building Facebook’s own games.”

More Read

cloud data security in 2023

Top Tools for Your Cloud Data Security Stack in 2023

Businesses Must Cope with the Benefits and Risks of Cloud Computing
Cloud-Centric Companies Discover Benefits & Pitfalls of Network Relocation
Optimizing Cost with DevOps on the Cloud
Cloud Technology Advances Make Telecommuting Highly Viable

The same is true for businesses that operate using Amazon.com’s infrastructure for warehousing and shipping. A Financial Times article cites Amazon.com as offering sellers access to a marketplace of 173 million people. However, the article also mentions “the downsides include giving Amazon direct access to these customers for information and communication and the potential for conflicts of interest.”

Platforms such as Amazon, Facebook, and even cloud computing services such as Salesforce.com, NetSuite or Google all provide services in the cloud that make it easier for companies to avoid paying for software and hardware upfront. In addition, platform as-a-service providers (PaaS) such as Force.com offer cloud based delivery models for deploying applications.  And while for small to medium sized businesses there is plenty of upside in avoiding hard to come by capital expenditures for infrastructure, the downside of cloud computing is that companies may be sharing information with their cloud providers that gives them insights into marketplace segments.

For example, infrastructure and platform cloud providers have access to online traffic patterns and consumption or development needs.  And in most instances, online selling platforms (i.e. Amazon.com) have behavioral data on customer shopping patterns, market baskets and purchases. Armed with massive amounts of behavioral data, it’s becoming easier for such companies to analyze large marketplaces and decide if they want to “get in the game” themselves or at the very least use such data to improve recommendation systems or category profitability.

Information is power and giving up too much information, especially behavioral data is definitely a downside of using cloud computing providers. An article in Technology Review sums it up nicely, “Hundreds of thousands of developers know building apps that rely on the Facebook or Twitter platforms comes at a risk—at any time, the companies can change their access rules or launch competing features.”

Some companies have little choice in using cloud computing providers to quickly get to market by avoiding capital outlays and shortening development times. However, it’s also important to acknowledge risks of sharing valuable behavioral and other data types with your “friendly” cloud provider.

paulbarsch September 4, 2012
Share this Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

SMEs Use AI-Driven Financial Software for Greater Efficiency
Artificial Intelligence
data security in big data age
6 Reasons to Boost Data Security Plan in the Age of Big Data
Big Data
data science anayst
Growing Demand for Data Science & Data Analyst Roles
Data Science
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

cloud data security in 2023
Cloud Computing

Top Tools for Your Cloud Data Security Stack in 2023

7 Min Read
cloud computing benefits and risks
Cloud Computing

Businesses Must Cope with the Benefits and Risks of Cloud Computing

9 Min Read
cloud-centric companies using network relocation
Cloud Computing

Cloud-Centric Companies Discover Benefits & Pitfalls of Network Relocation

5 Min Read
DevOps on cloud
Development

Optimizing Cost with DevOps on the Cloud

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?