The key as you have correctly pointed out is to lay upfront the huge capital costs, with the best technology available in the World, & go for scale. The best example of this in India is Reliance. They invest, compete at very low prices & build scale. Once they cross the critical mass on scale, they increase prices & make huge profits. In fact this model they follow in all their business.
Their model is also based on equity & very little borrowings. This was the genius Dhirubhai’s model.
So basically, as the innovator, you need to find an investor with a lot of capital & deploy your brains & the Investor’s money to lay out the initial infrastructure to reach a great backbone to as many potential users as you can. Once laid the backbone can be used to expand into new areas in the cloud space, while you move on to other innovations to deploy.
The key as you have correctly pointed out is to lay upfront the huge capital costs, with the best technology available in the World, & go for scale. The best example of this in India is Reliance. They invest, compete at very low prices & build scale. Once they cross the critical mass on scale, they increase prices & make huge profits. In fact this model they follow in all their business.
Their model is also based on equity & very little borrowings. This was the genius Dhirubhai’s model.
So basically, as the innovator, you need to find an investor with a lot of capital & deploy your brains & the Investor’s money to lay out the initial infrastructure to reach a great backbone to as many potential users as you can. Once laid the backbone can be used to expand into new areas in the cloud space, while you move on to other innovations to deploy.