Is digital technology a democratizing force, allowing smaller, newer companies to compete against giant ones? Or does it provide even greater advantage to incumbents? That question has gotten a lot of attention lately, in response to data showing that the rate of new business creation in the U.S. has slowed, and that in most industries the biggest firms have higher market share than they did a decade ago.
Research: Cloud Computing Is Helping Smaller, Newer Firms Compete
The ability to rent computing power is leveling the playing field.
August 31, 2018
Summary.
Cloud computing has “democratized computing” by bringing it to the masses of firms. First, cloud computing has seen massive growth. Less than 0.5% of firms had adopted it in 2010, whereas 7% had by 2016, which is an annualized growth rate of almost 50%. Second, the adoption of cloud computing has occurred across the U.S., not just in one region — albeit with heaviest and earliest adoption in urban and educated areas. But third, and most strikingly, cloud computing – unlike other technologies like PCs and e-commerce – has been adopted first by smaller and younger firms.
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Digital Intelligence Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Digital Intelligence . Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Excel in a world that's being continually transformed by technology.