Cloud Computing: How the Industry Will Evolve
February 14, 2014
Grazed from DailyFinance. Author: Gaurav Seetharam.
In 1976, Bruce Henderson — then CEO of the Boston Consulting Group and a renowned management guru — had an insight that isn’t talked about enough. Mr. Henderson made the observation that stable, competitive markets often have just three major competitors. Yeah, just three.
Market shares for these "Big Three" tend to align in a 4:2:1 ratio — meaning that the industry leader will double the market share of its nearest competitor, which in turn does twice as much business as the next-to-nearest competitor. It’s supposed to be a naturally occurring phenomenon of mature industries…
Why does that happen?
We don’t exactly know. Remember that Mr. Henderson was in the consulting business, not academia, so his ideas aren’t fully fleshed out into a comprehensive theory. In all fairness though, a recent follow-up study by BCG — in partnership with Chapman, Claremont, and Rutgers Universities — looked at 10,000 companies in over 450 industries. The report reads:…
Read more from the source @ http://www.dailyfinance.com/2014/02/14/cloud-computing-how-the-industry-will-evolve/
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