Value-in-Context Markets

Cloud computing was a completely new term a short 9 years ago, in 2007. The basis of this technology is to move the workload of IT activities away from an organization, and to one or more third parties that have resources dedicated to processing such things. These can be, but are not limited to, networking, storage, software systems, and applications. Rather than having to create and maintain their own expensive datacenters, companies can pay a fee to use someone else’s. This makes growing businesses extremely flexible, as they can easily gain or remove storage space per their needs. Being able to purchase the use of online storage space is known as “hardware as a service,” or, more simply, “virtualization.” Being able to purchase the use of online software is known as “software as a service.” Both are very powerful tools that allow the minimization of a company’s IT budget.

Business owners use three types of cloud service, public, private, and hybrid these clouds store their data and provide them with services. The benefits of these clouds are endless, additionally, they saves businesses time and money, promoting innovation, enhancing productivity, and improving communication while cloud hosting accelerate information sharing, like email, application hosting, web-based phone, and data storage (Griffith, 2013).

Cloud Services and Virtualization continue to grow in popularity but are they right for your business? These technologies can reduce overhead operation costs, improve utilization of resources and provide a level of flexibility to the organization’s Information Technology (IT) system. Understanding that these technologies do and their pros and cons is the foundation of choosing the right features for your business. Cloud services offer three types of services; Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) to meet the software, infrastructure needs of a business and provides them on a lease type of payment plan. Virtualization has three types of server virtualization, Full virtualization, Para-Virtualization and OS level Virtualization. Similar to Cloud services Virtualization types have features which may suit one business over another. Comparing the features provided by these technologies to total ownership of the IT system is also crucial in selecting the best services for your company as there can be an array of combinations of services contracted and internally owned features. While the perks of these technologies can be beneficial for an organization they should be carefully researched and tailored to the business strategic goals for

“The elimination of an up-front commitment by Cloud users” - a business can start small, the resources are always perfectly adapted to their needs. Or in other words, the elasticity is very high.

Whereas recently, literature has proposed the concept of a Service Dominated (SD) logic where the customer and the firm are involved in co-creating value-in-use, rather than value-in-exchange, within a service system (Vargo et al 2008). In this SD logic Vargo & Lausch

Larger scale networks such as transportation are also service systems (Gautam, 2003). Services can be provided to both external and internal customers (Fisher & Schutta, 2003). Banks, hotels, and education systems provide services for external customers. A company’s accounting and human resource department provide services for customers who are internal to their company. A customer can be a single individual or a group of people. Similarly, a service system can provide a service through a number of service providers (Gautam, 2003).

Firms are increasingly turning to cloud computing as a means of managing their IT infrastructure. Notably, the industry is expected to expand 19% to $162 billion by 2020 (Columbus, 2017). This trend can be explained by the business benefits and solutions to problems cloud services including infrastructure, software programs, and platforms as services (IaaS, SaaS, and PaaS respectively) provide.

Shared services have long been seen as a supporting unit for the rest of the business with limited impact outside of the bottom line. However, companies and directors of shared services face mounting pressure to make significant contributions other than to the bottom line.

An organization often uses public cloud services because it can offload much of its implementation and

The world, as a whole, is changing. It is true that some sections of the world are remaining primitive in terms of industrialization, but the general population is a progressive one. There are incredible advancements being made in the industries of transportation, communications, aerospace and defense, as well as almost every industry related to the culture of society. As these advancements progress and companies innovate, the demand for different products changes. For example, the demand for DVDs today is no where near what it once was. In today’s society, there is a huge demand for technology based products. Due to this increased demand for technology, there has been an impressive amount of innovation on how technology is both used and sold. The largest of these innovative movements has been the movement towards cloud computing. In about as basic of a definition there is, The Cloud is simply a way to store data online. Instead of saving something to a hard drive, it can be saved to The Cloud. As one of The Cloud’s many advantages, this allows files to be accessed from any device at any location. However, it also has some disadvantages. This is arguably the most relevant issue in the business world today, which is why the sources below will help to analyze the benefits of cloud computing versus the costs of it.

We have in mind that your business is continuously expanding. So, we have arranged for supporting infrastructure and hardware resiliency. You are at a fiscal gain due to scalability advantages of our cloud-based service while having a private environment.

The value-pricing strategy, in marketing is essentially a business strategy utilized in companies to set prices and promote products based on how much benefit and usefulness customers identify a product, good, or service to have (Thibodeaux, 2016). Furthermore, value-pricing strategy is a concept of determining a price that captures a greater portion of customers and what they are willing to pay for that product or service. Moreover, it 's how customers base their decisions when they intentionally think about which product to purchase. Likewise, this strategy employs the buyer 's knowledge, attitude,and viewpoint of monetary worth and not the actual seller 's cost as the key aspect of pricing. Therefore, when utilizing value-pricing strategy, it is essential to use the buyer 's perception of value (Marketing-Insider, 2016). Customer value-based pricing is setting a price based on buyers’ perceptions of value and in addition, a price must be set ahead of time within the marketing timetable before it is welcomed by customers versus setting the price of the product after the product is already designed and implemented.

The need for computing systems has been increasing in the last decades. This can be proved by the increase on the use of cloud computing. According to the National Institute of Standards and Technology (NIST), cloud computing is an online system that allows to share different types of sources with slight resources (NIST 2012). In addition, cloud computing is changing the tradition definition of computation and information as products to services (Laykin 2013, p.142; Demir 2012, p.30). This change has brought a considerable number of advantages, such as “on demand self-service”, “broad network access”, “resource pooling”, “rapid elasticity” and “measure service” (NIST 2012). However, this new technology also has been rising new ethical

Services are intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value (Kerin, Hartley 322). Service are an important part in the global economy. Services are now apart of the GDP. There are four elements of services which are intangibility, inconsistency, inseparability, and inventory. Intangibility means it can not be touched, held, or seen before the purchase. These services help consumers to get information or show the benefits of their product. Inconsistency is developing, pricing, promoting, and delivering services is complicated because the quality of service is often inconsistent. This is because these services require people to do them, and different people work differently. Inseparably have problem of consistency. Consumers can not separate the delivered of the service from the service itself. The amount of interaction between consumer and the service depends on the extent to which the consumer must be physically present to review the service. Finally, there is inventory which are different from products and are perishable.

Christian Grönroos and Annika Ravald (2010) analyzed the scope, content and nature of value co-creation in a service logic based view of value creation, considering the customer perspective in a supplier-customer relationship. They published their findings in the Journal of Service Management vol. 22 no. 1, 2011, pp 5–22. They emphasized to keep apart production and value creation, as according to them they are different constructs. Production is the course of making the resources consumers integrate in their consumption or usage procedures. Value creation is the process of generating value-in-use out of such resources. They say that hence the value is not produced; resources out of which value can be generated are produced. Due to the interactive nature of service activities, where manufacturing and consumption are partly concurring processes, customers involve themselves in the production process and become contributors in that process. The character of customers as co-producers of service activities was recognized already in the early days of service marketing research (Eiglier and Langeard, 1976; Grönroos, 1978, 1982). As Gummesson (1998, p. 247) declares, “a service provider without consumers cannot produce anything”.