Five Forces Analysis on Cloud Computing-Free-Samples for Students

Question: Discuss about the Porters Five forces Analysis on Cloud computing industry with regard to Bottomline Technology Company. Answer: The above diagram represented the porters five forces for the analysis of cloud computing market with regard to Bottomline Technologies Cloud market condition various organizations presence in the cloud computing sector are resulting into less concentrated market. This lower level of concentration indicates a market sector that is highly competitive. Existence of mostly all the giants from the industry like Apple, IBM, Google are also the indication for the high presence of rivalry between competitors. Though the services offered by them varies on the basis of PaaS, Iaas and SaaS or the combination of any two of them, even under the same area of service, the competition is expected to be high due to the low differentiation of products. However, the products of Bottoline technologies assist the clients to remove the business complexities with regard to the payments and develop a payment system that is secure, simple and streamlined (Bottomline.com 2017). New entrants under the cloud computing market the chances of the new comers are high as the requirement for preliminary investment is low, market exit barrier is low and time required for marketing is low. Further, under the PaaS market, the existence of industry giants like Google, IBM and Apple creates the high barriers for entering that can be reduced through differentiation and innovation of product. On the other hand, under the SaaS market, threat of new entrants is low as requirement for initial investment and the existence of higher level of risk. Buyers the bargaining powers of the buyer are expected to be high under the SaaS market due to cost involved in switching market is low and availability of various choices. Under the PaaS market, bargaining capacity of the buyers rare expected to remain low due to high cost of switching (Lian, Yen and Wang 2014). However, the growth expectation and complicated business of Bottomline Technologies are exposing them to loosing of customers. Suppliers suppliers under the market of cloud computing are the providers for cloud services. Under the SaaS market, the suppliers bargaining power is low due to the low cost of switching of the buyers and the present of various players in the market (Hashem et al. 2015). However, under the PaaS market the suppliers bargaining power is high due to the lock-in-leads for the vendor. However, under SaaS, the brand loyalty is only way the in which the suppliers can achieve some of the bargaining powers. Technology development threat associated with the substitutes for all the services related to cloud computing technology are associated in growth phase itself. The open resource for the computing may be the only substitute for the cloud computing. However, the SMEs are expected to prefer the cloud computing due to the consulting services availability from the suppliers and the non-existent of the shifting cost (Erl, Puttini and Mahmood 2013). However, Bottomline Technologies has developed various services like ISO and SWIFT for carrying out the communication among corporations and banks which enabled to get the competitive advantages over the competitors. Reference Bottomline.com. (2017). Simple, smart secure business payments | Bottomline Technologies. [online] Available at: https://www.bottomline.com/uk/ [Accessed 20 Aug. 2017]. Erl, T., Puttini, R. and Mahmood, Z., 2013.Cloud computing: concepts, technology architecture. Pearson Education. Hashem, I.A.T., Yaqoob, I., Anuar, N.B., Mokhtar, S., Gani, A. and Khan, S.U., 2015. The rise of big data on cloud computing: Review and open research issues.Information Systems,47, pp.98-115. Lian, J.W., Yen, D.C. and Wang, Y.T., 2014. An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital.International Journal of Information Management,34(1), pp.28-36.