Cloud Computing as a sustaining or a disruptive technology How can Enterprise Modelling help in analysing the impact of Cloud Computing on business and operating models? Word count: <64.762> Jan Van Der Burgt student number : 0604179 Promotor/ Supervisor: Prof. dr. Geert Poels Master’s Dissertation submitted to obtain the degree of: Master of Science in Business Economics Academic year: 2016 - 2017 Cloud Computing as a sustaining or a disruptive technology Van Der Burgt Jan PERMISSION I declare that the content of this Master’s Dissertation may be consulted and/or reproduced, provided that the source is referenced. name student : Jan Van Der Burgt Signature 2 Cloud Computing as a sustaining or a disruptive technology Van Der Burgt Jan Table of Contents Master’s Dissertation submitted to obtain the degree of: ........................................................ 1 List of used tables ....................................................................................................................... 6 List of used figures...................................................................................................................... 6 1 Part I: Introduction ............................................................................................................. 7 1.1 Preface ......................................................................................................................... 7 1.2 Acknowledgements ..................................................................................................... 8 1.3 Personal motivation .................................................................................................... 9 1.4 Social Relevance ........................................................................................................ 10 2 Part II: Literature review .................................................................................................. 14 2.1 Conceptual delimitation: cloud computing ............................................................... 14 2.1.1 Definition of cloud computing ........................................................................... 14 2.1.2 Different types of cloud computing ................................................................... 14 2.1.3 Characteristics of cloud computing .................................................................... 15 2.1.4 Service models ................................................................................................... 16 2.1.5 Advantages of using cloud computing ............................................................... 17 2.1.6 Weaknesses of cloud computing ....................................................................... 19 2.1.7 Technical explanation of cloud computing ........................................................ 20 2.2 Conceptual delimitation: innovation ......................................................................... 23 2.2.1 General about innovation .................................................................................. 23 2.2.2 Incremental innovation ...................................................................................... 24 2.2.3 Radical product innovation ................................................................................ 25 2.2.4 Incumbents ......................................................................................................... 25 2.2.5 Disruptive innovation ......................................................................................... 25 2.2.6 Different types of disruptive innovations .......................................................... 34 2.3 Enterprise modeling and Business models ................................................................ 36 2.3.1 Enterprise modeling ........................................................................................... 36 2.3.2 General info about Business Models ................................................................. 37 2.3.3 Business model innovation ................................................................................ 38 2.3.4 Business and revenue models used in cloud computing ................................... 39 2.3.5 The Business model Canvas ............................................................................... 43 2.4 Cloud computing and innovation .............................................................................. 45 3 Part III: Research question ............................................................................................... 49 3.1 Research question ..................................................................................................... 49 4 Part IV: Methodology ....................................................................................................... 50 3 Cloud Computing as a sustaining or a disruptive technology Van Der Burgt Jan 4.1 Research design ......................................................................................................... 50 4.1.1 The choice of the research strategy ................................................................... 50 4.1.2 Case selection ..................................................................................................... 51 4.1.3 Data selection ..................................................................................................... 52 4.1.4 Data analysis ....................................................................................................... 52 4.1.5 Applied frameworks ........................................................................................... 53 4.2 Validity and reliability ................................................................................................ 57 4.2.1 Construct validity ............................................................................................... 57 4.2.2 Internal validity .................................................................................................. 57 4.2.3 External validity .................................................................................................. 57 4.2.4 Reliability ............................................................................................................ 58 5 Part V: Discussion different cases .................................................................................... 59 5.1 Netflix ........................................................................................................................ 59 5.1.1 General info ........................................................................................................ 59 5.1.2 How Netflix uses Cloud computing technology ................................................. 62 5.1.3 Business model of Netflix explained .................................................................. 64 5.1.4 The Business Model Canvas of Netflix ............................................................... 65 5.1.5 The impact of cloud computing on the business model of Netflix .................... 69 5.1.6 Does it meet the disruptive innovation criteria? ............................................... 70 5.2 Salesforce ................................................................................................................... 73 5.2.1 General info ........................................................................................................ 73 5.2.2 How Salesforce uses cloud computing ............................................................... 74 5.2.3 The business model of salesforce explained ...................................................... 75 5.2.4 The Business Model Canvas of Salesforce ......................................................... 77 5.2.5 The impact of cloud computing on the business model of Salesforce .............. 81 5.2.6 Does it meet the disruptive innovation criteria? ............................................... 82 5.3 Spotify ........................................................................................................................ 86 5.3.1 General info ........................................................................................................ 86 5.3.2 How Spotify uses cloud to offer its service. ....................................................... 88 5.3.3 Business model of Spotify explained.................................................................. 91 5.3.4 The Business Model Canvas of Spotify ............................................................... 98 5.3.5 The impact of cloud computing on the business model of Spotify ................. 103 5.3.6 Does it meet the disruptive innovation criteria? ............................................. 104 5.4 Dropbox ................................................................................................................... 107 5.4.1 General info ...................................................................................................... 107 4 Cloud Computing as a sustaining or a disruptive technology Van Der Burgt Jan 5.4.2 How Dropbox uses cloud computing ............................................................... 109 5.4.3 The business model of Dropbox explained ...................................................... 112 5.4.4 The Business Model Canvas ............................................................................. 114 5.4.5 The impact of cloud computing on the business model of Dropbox ............... 117 5.4.6 Does it meet the disruptive innovation criteria? ............................................