The App – business model

Amazon to launch its app-store on march 22nd….it’s been a while but again Amazon is adapting to the new generation of business modelling entering a cloudy and mobile app-world. 

But why change a winning team….when everybody says, never change a winning team! The future of  new mobile and cloud era forces Amazon to take action. App’s are the future is this era, so the time was right after the big 2: Google and Apple (through iTunes) for Amazon to adapt to the app era. Why? Easy…it’s the business model (stupid!), so let’s take a closer look at the business model of a digital business where the app-store takes a central role!

This image points out a clear role for the app store…central in the business model between business, developer and customer.  The app-store serves as a central hub where network effects plays connecting customer value to app. On the revenue part, it’s easy the app store is the middleman containing the data and money flows (look at iTunes, who keep everything very close and gains a lot of money and data).

What’s in it for Amazon….easy Amazon’s web store will focus on web apps, who are accessible to the cloud on any device. Buy once, use everywhere. That’s the future of app….not only accessible through one device but accessible through multi devices, and adapts to the device. This is a weak point regarding the Apple strategy….I can’t access my iPad Apps through my iPhone and vice versa. I’ve got to buy them both, because they run locally. The web App is stored in the cloud, and can be accessed in an adopted format on every device…and that’s when it starts to get interesting for companies like Amazon. The app has proven it’s effect, and the app stores becomes the central service point, because everything can be made into an app, and this means business if you can reach a lot of potential customers like Amazon. It adds to the already connecting and sharing strategy of Amazon, and make Amazon available everywhere on any device…that’s a good business model in the mobile and cloud era!

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Posted in Flat Business

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