Christos Michalakelis

Impact of cross-national diffusion process in telecommunications demand forecasting

New product diffusion process studies focus mainly on estimating the adoption rate of the product, within the boundaries of the targeted market. However, and especially for high technology and telecommunications products, it is very likely the case that products or services are introduced simultaneously into a number of market segments, a fact that it is rarely taken into account. Thus, the effect of market and population interaction, and the consequent co-influence in the diffusion rates is not considered. This work focuses on developing and evaluating a pertinent methodology, so as to capture this cross-national interaction influence in the diffusion process.

Dynamic estimation of markets exhibiting a prey-predator behavior

The evolution of market concentration in high technology saturated markets with a dominant player is dynamically estimated, based on concepts of population biology. The mathematical description was performed using the Lotka-Volterra model and the corresponding parameters were estimated by genetic algorithms. The proposed methodology shows itself capable of estimating market equilibrium and market concentration, the latter expressed by corresponding market shares. Evaluation of the presented methodology in the area of fixed lines telecommunications market led to accurate results, as compared to historical data, in a specific case study. This methodology can provide valuable inputs for managerial decisions, strategic planning and regulatory decisions to the players of a high technology market.

Nonparametric estimation of a hedonic price index for ADSL connections in the European market using the Akaike Information Criterion

It is evidence that the demand for Asymmetric Digital Subscriber Line (ADSL) connections increases day by day in all European countries as much as worldwide and it is well known that Internet’s penetration is considerably amazing. At the same time, due to the fierce competition among ADSL connections providers, several packages are offered in attractive tariffs. As a product consists of various characteristics that consumers value, the question that arise could be summarized to the following: How should consumers’ choices and preferences for ADSL connections affect tariffs and what are the more significant and powerful characteristics that shape tariffs of ADSL connections?This paper provides a hedonic price analysis of ADSL connections for the European market. A problem which is posed is the selection of the best model. So, in order to estimate prices a sliced inverse regression (SIR) is performed, without knowing the shape of the function. Then by applying Local Polynomial Regression (LPR) a possible shape of the hedonic function is given. Among several candidate hedonic models and by applying Akaike Information Criterion (AIC), the best one is derived. In order to evaluate the proposed methodology, tariffs’ data have been collected from 15 European countries over the period from 2003 to 2005. Apart from tariffs, information on characteristics such as supported data rate (DR), maximum consumed data volume (V) and maximum allowed minutes on line (T) have been collected and analyzed.

Modeling Competition in the Telecommunications Market Based on Concepts of Population Biology

Based on concepts of ecology modeling and specifically on population biology, a methodology for describing a high-technology markets dynamics is developed and presented. The importance of the aforementioned methodology is its capability to estimate and forecast the degree of competition, market equilibrium, and market concentration, the latter expressed by corresponding market shares, in the high-technology environment. Evaluation of the presented methodology in the area of telecommunications led to accurate results, as compared to historical data, in a specific case study. Apart from a very good estimation of the markets behavior, this methodology presents a very good forecasting ability, which can provide valuable inputs for managerial and regulatory decisions and strategic planning, to the players of a high-technology market, described by high entry barriers.

What drives eGovernment growth? An econometric analysis on the impacting factors

This study contributes to the current literature of eGovernment adoption, by proposing a parsimonious, yet comprehensive model, based on three socio–economic theories namely, institutionalism, endogenous and exogenous growth. Using this framework as the guiding theoretical lens, critical factors are identified, while their impact is evaluated with an econometric analysis on secondary, country level data. The study especially highlights on the use of OSS technology and its implications into the eGov context. Findings suggest that countries with advanced technologies, education, technological openness and effective governance and regulation lead eGovernment adoption.

The Ontology of the OSS Business Model: An Exploratory Study

This study focuses on theory building providing a holistic conceptual framework that consists of an ontology based OSS business model and an OSS business model taxonomy. The study extends existing theory in OSS business models and corresponding taxonomies, based on the structured-case methodological approach. An exploratory study is conducted in two research cycles, for the identification, validation, and evaluation of the critical constructs of an OSS business model. Results reveal that OSS business models differ from traditional software business models, having specific features that affect the software value chain, the infrastructure, and the revenue model of an OSS oriented firm.

A hedonic approach to estimate price evolution of telecommunication services: evidence from Greece

Following a description of the leased lines telecommunication market, a single index (based on hedonic approach) for this market is introduced based on data across Europe. This article aims to provide a framework for analysing telecommunication prices over time and study how the prices will fluctuate during coming years, especially as new technologies are commercially provided. The behaviour of the Greek market is analysed from 1997 to 2002.

Pricing cloud IaaS services based on a hedonic price index

Cloud computing, as an innovative business model, has experienced rapid diffusion across the international business world, offering many benefits to both the demand and the supply side of the ICT market. In particular, the public cloud approach receives more attention and the Infrastructure as a Service (IaaS) model is expected to be the fastest growing model of public cloud computing, as it is considered to be a very good solution for companies needing the control of fundamental computing resources, such as memory, computing power and storage capacity. Currently, the battle for a dominant market share grows the competition among cloud providers and leads to the development of new pricing schemes, in order to meet the market demand. However, the choice of the cheapest cloud hosting provider depends exclusively on the clients’ needs and this is why prices for cloud services are a result of a multidimensional function shaped by the service’s characteristics. Into that context, this paper summarizes the findings of an initial work on the construction of a price index based on a hedonic pricing method, taking into account different factors of IaaS cloud computing services, including two of the most important players in the cloud market, Google and Microsoft Azure. The aim of this study is to provide price indices both on a continent level and globally, in an effort to investigate differences in pricing policies in different marketplaces. Comparing the results leads to important conclusions related to pricing policies of IaaS cloud services.

A Hedonic Price Index for Cloud Computing Services

Cloud computing is an innovative business model, being developed at a fast pace during the last years, offering many operational and economic benefits to both the demand and the supply side of the ICT market. Infrastructure as a Service (IaaS), which includes control of fundamental computing resources, is expected to be the fastest growing model of public cloud computing. Due to the existence of several IaaS cloud providers, there is increased competition among cloud companies, which develop different pricing models in order to meet the market demand. As a consequence, prices for cloud services are a result of a multidimensional function, shaped by the service’s characteristics. The development of a suitable pricing method, based on an appropriate price index able to capture the market dynamics, is an obvious necessity. The aim of this paper is the construction of such a price index, for the IaaS model, using data from a wide range of cloud providers and a large number of price bundles. The hedonic pricing method is used to decompose cloud computing services into their constituent characteristics, obtaining estimates of the contributory value of each resource. According to the results, RAM size, CPU power and subscription turned out to be the most influential factors that shape IaaS pricing.

The Rise of Cloud Brokerage: Business Model, Profit Making and Cost Savings

Cloud computing has succeeded in transforming the ICT industry, making computing services more accessible to businesses. Nowadays, many cost effective solutions are available to users. However, searching for the best provider or the best bundle is not always an easy decision for the client. The cloud broker is a widely known business model derived from this necessity. It is a third-party business which assists clients to make the best decision in choosing the most suitable cloud provider and the most effective service bundle for their needs, in terms of performance and price. Into that context, this paper describes the cloud broker business model and its promising future. It highlights the broker’s vital role and the benefits that arise from the use of its services, explores on the same time the drawbacks that derive from the intermediation of cloud broker. The economic context of the cloud broker model is also examined by reviewing the contemporary literature for the pricing methods that can be adopted by a cloud broker in order to achieve cost savings.