What is a cloud capitalist?
A cloud capitalist is a company with a business model that provides a product or service that is entirely based in a virtual environment that is accessed over the Internet or that accesses that model with its existing business. The products and services offered by cloud capitalists are a departure from traditional models in that they are not intended to be downloaded or installed on a computer or wireless device.
Instead, the user pays for access to the virtual environment in which the product or service can be used. Alternatively, access to the virtual environment can be free, but the product or service is pay-per-use.
Cloud capitalists are the pioneers of platform-as-a-service (PaaS) and software-as-a-service (SaaS) models, as well as alternative cloud storage models for music and video. By requiring a subscription instead of a one-time purchase price, software manufacturers are getting out of the constant effort to find additional features to make the upgrade attractive to consumers who have a serviceable older version on their computer. Consumers can also benefit from the cloud model as they do not have to upgrade their hardware and do not have to pay large up-front costs to use the latest software versions.
Cloud capitalists in media (music, video, e-books) do not yet have a uniform approach. There is a difference between unlimited consumption models, where the user can access an extensive library for a monthly fee, and a pay-per-use model, where a file temporarily lives on a device such as a rental property.
Cloud capitalists believe that because of the rapidly growing complexity of technology, it makes sense to host these services on hardware that can best handle them, rather than continuing the expensive update cycles that are normally required when software has to overtake hardware capabilities . With the ground that cloud-based solutions are winning, it's hard to argue.