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Exploiting cloud computing — A proposed methodology for generating new business

Cost savings are frequently mentioned as the main driver for cloud computing due to reduced CapEx and OpEx through consolidated data centers, reduced HW/SW investments and IT staffing. Generating new revenues and business through offering cloud-based services are more seldom discussed. When addressing the former cost savings, methodologies like TCO (Total Cost of Ownership) are commonly applied. When addressing the latter, we see an incomplete and inexact methodology being used. This paper suggests a methodology for addressing new business opportunities from cloud computing, which may support Telcos in their exploitation activities towards SME's or the enterprise market. A business model terminology is introduced briefly followed by a suggested business model framework. Finally, a case example from the VISION Cloud EU Project is briefly presented as an illustration of this model.