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netvirt Authors: Yeshim Deniz, Moshe Kranc, Pat Romanski, Elizabeth White, Daniel Gordon

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The Platform Business Model | @CloudExpo #Cloud

A 'Network platform' is defined by the subset of components used in common across a suite of products

The purpose of the maturity model is to enable accelerated adoption of the new Cloud technologies that make disruptive business models possible, faster, the headline reference example being the ‘Platform Business Model'.

Gartner says senior IT executives should be "digitally remastering" their organizations, and central to this digital leadership is the ‘Platform Business Model‘, described in detail through pioneering MIT research work.

Headlined by this book ‘Platform Revolution‘, that builds on prior MIT research, such as this detailed 2007 research report on Platform Networks,

"A "Network platform" is defined by the subset of components used in common across a suite of products (Boudreau, 2006) that also exhibit network effects. Value is exchanged among a triangular set of relationships including users, component suppliers (co-developers), and platform firms."

It is also described in simpler formats in this presentation, and also this highly recommended presentation Platform Strategy and Open Business Models.


The Sharing Economy Meets Elastic Cloud Business Models
The Platform Business Model has emerged as the moniker for defining the hyper-scale disruptors like Netflix, Uber, Airbnb, Facebook, Twitter et al, as the book describes:

"Facebook, PayPal, Alibaba, Uber-these seemingly disparate companies have upended entire industries by harnessing a single phenomenon: the platform business model."

The MIT research explores the different dynamics of platform scenarios and markets, like Microsoft vs Apple across computers, portable music players and ultimately smartphones.

As the new breed of hyper-scale startups like Uber, Netflix, Airbnb are demonstrating when it is combined with massive investment financing and highly scalable mobile and Cloud application services, it very quickly becomes an all-dominating behemoth, unstoppable unless you compete on the same level.

Hence why the business model itself has become so important and popular. For example Dan Woods says your CDO efforts will fail unless you adopt Platforms.

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