Potential market

SECTION I: The product

1a The innovation potential of this product is related to: 

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
Note: Select and explain for one of above options or (in case of non relevance) define another. We try to identify why this potential product constitutes an innovation offer
The innovation potential of a product based on this R&D result would best be characterized as technology-driven, given that the use of cloud application platforms (i.e. public or private Platform as a Service environments) for the development and deployment of web applications is a market that is currently being shaped, and is expected to emerge as an important part of the IT landscape in the coming 3-7 years.

1b What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
Note: Select and explain for one of above options or (in case of non relevance) define another. We try to identify what new this potential product constitutes in accordance to the existing market status.
The information that is presently released from cloud application platform operators, concerning how they address the challenge of governance in their own platforms, suggests that this is happening through ad-hoc solutions, such as combinations of custom-developed or third-party software tools for version control, software testing and configuration and change management. The R&D result being described enables a structured, integrated and highly automated approach for supporting governance in cloud application platforms, with functionalities which have not been consolidated into a single software system before. 

 

1c What is the Unique Sales Proposition of the potential product?
Note: What makes your product unique in marketing terms? This helps your prospects to understand why they should buy from you rather than other existing product options.
The Framework and System for Cloud Application Platform Governance enables a structured, integrated and highly automated approach for supporting governance in cloud application platforms, helping administrators maintain visibility over the software entities deployed on the platform, their interdependencies and their lifecycle states, monitor the behavior of remotely deployed third-party Web services which may be used by locally-deployed applications, and ensure the validity of all entity-related artefacts with respect to various platform policies. The governance functionalities that the system combines have not been consolidated into a single solution before.

 

SECTION 2: The Market

2a What is the target market for the product?  

National ¨

European ¨

Global X

Please describe the characteristics of your target market.

Note: Define the market range, the size of the target market (if possible) in terms of maximum product units
The target market for a product based on the R&D result would be international. According to a recent forecast by the market analyst firm Forrester, the global market for cloud computing will grow from $40.7 billion in 2011 to more than $241 billion in 2020. This figure concerns all different types of cloud service models, i.e. Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Gartner projects that the market for Platform as a Service (PaaS) offerings will experience consistent growth with worldwide PaaS revenue totaling $1.8 billion in 2015. Given these estimates, the demand for governance solutions in PaaS environments would also be expected to increase dramatically in the years to come.
2b How the product is characterized from the following options? Number of companies producing similar products in the field. 

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

Note:
Given the apparent lack of comparable software systems for cloud application platform governance in today’s market, if a product was to be developed based on this R&D result and commercialized in the immediate future, it would fall under the ‘leading’ or ‘key’ category of products.
2c What type of market demand will be satisfied? 

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

Note:
As already mentioned, the use of cloud application platforms (i.e. public or private Platform as a Service environments) for the development and deployment of web applications is a market that is currently being shaped, and is expected to emerge as an important part of the IT landscape in the coming 3-7 years. The market demand for such a solution is presently latent.

2d What is the current stage of the product’s market life cycle? 

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

Note: At this point we refer to the life cycle of the market related to the product. I.e. a product based on a new technology area (e.g. solar energy cars) is considered to be in the first phase of the life cycle when e.g. a typical TV set is in the maturity phase
The market related to the product is that of private and public cloud application platforms, commonly referred to as Platform as a Service environments, and is presently at the first phase of its lifecycle.

2e Strategic partnerships (existing or potential).
Note:
The Information and Knowledge Management research group at SEERC has developed a number of research partnerships with software companies which are active in the domain of cloud computing.

SECTION 3: The Competition

3a What is the competition within your target market?
Note: Refer to other companies producing the same product
As already mentioned, the market demand for cloud application platform governance solutions is presently latent. There is an apparent lack of comparable software systems in today’s market. The governance functionalities that the system combines have not been consolidated into a single solution before.

3b What competitive advantages will the introduction of the new product ensue? 

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

Note:
The introduction of a product based on the said R&D result for cloud application platform governance would aim at offering a different solution, rather than a reducing the prices of existing ones.
3c Potential products relate to the following price range: 

• High price range

• Average price range

• Low price range

Note:
The price ranges to be adopted in marketing the product could only be determined after having evaluated the alternative cloud application platforms that the governance solution could support. This parameter is subject to the results that will be obtained from technical advancements in the software system in question.
3d Potential products will be marketed: 

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

Note:
The market of cloud computing and Platform as a Service offerings is not regulated.

 

SECTION 4: Indicators

Expected market volume (potential / maximum number of users) 500 / 50000
Expected sales volume TBD
Expected market share of the company (proportion between sales and total company sales in the relevant market) 1%

 

KEYWORDS QUANTITATIVE ASSESSMENT (0-5).

Please encircle as appropriate.

1 2 3 4 5
Added-value potential X
Size of future market demand X
Competitive positioning of the product X

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