Cloud computing enables businesses to disrupt by leveraging the scale of massive computing. Businesses can now afford supercomputing by only paying for what they use.
This is all possible because "the cloud" is shared infrastructure. Cloud vendors like Google can offer very competitive pricing for Tier 1 computing power. Now businesses no longer need capital investment and only pay for power when the business reaches the scale.
Businesses also have access to thousands of CPU cores for a couple of dollars, which means small business can crunch big data, therefore benefiting from complex algorithms being run on huge historical data generating efficiencies and opportunities. Both benefits lead to reduced costs which allow businesses to disrupt with pricing, it also allows business to offer faster and better services to end users.
Think about how Uber disrupts the meter taxi industry, they offer a simple user interface that solves three key problems with the taxis industry:
- No longer having to pay cash,
- Details about the driver and,
- Exactly how far away the car is to your location.
Then Uber uses the scale of computing to deliver this service to anyone on the planet without having to build their own data centres at a fraction of the cost.
There are many examples of these types of disruptions like AirBnB which focuses on the hotel industry in a similar manner. How they started was to provideAmericans with the ability to make more money during the recession in 2008 by renting out their couches.
This is known as the On Demand economy where individuals share assets. AirBnB could even be seen as one of the world's first micro-jobbing services allowing their users to make money by renting their couches.
The On Demand economy is really about building platforms, not apps.
These platforms usually are in the form of a marketplace where society can trade assets anywhere and anytime.
If we look at the basic principles of micro-jobbing platforms like Money4Jam, TaskRabbit, Fiverr these marketplaces facilitate the trading of time i.e. Those who have available time trading with those who don't have available time.
TaskRabbit and Fiverr focus on the one to one economy where they match sellers of professional services at low cost to professional buyers who require the skill sets at that moment.
Typical jobs listed on these marketplaces are design work, cleaning services, handyman services, etc.
A newcomer to the On Demand economy is Money4Jam who are scaling this economy even further by creating hundreds of thousands of small jobs for small sums of cash.
This means more people with a wider variety of skills can earn cash on their mobile devices. Businesses who have large projects that take many months and hundreds of people can now split the project up into thousands of jobs that the crowd can complete in a matter of hours.
Typical jobs are Market research, merchandising, audits, brand activations, training, etc.
These born in the cloud businesses would not exist before cloud computing as they require huge computing power to crunch large volumes of data and service users all over the planet in real time.
It is often written that today's jobs were not even known 10 years ago, with the growth of On Demand economies we will be working when we want to, from where we want to; the quality of our work won't be judged by a boss but by the crowd through social recommendations, our entire working culture will be very different in the next 10 years.
Cover Image: Tech google | Geoff Stearns