Service Distribution in IP Networks – A Business Model Analysis

Abstract

In this paper we analyze different business models for the distribution of
content and services over IP networks and outline their distinct characteristics and value
propositions. Four business models are distinguished: Centralized Internet Hosting, Direct
Homing, Content Delivery Networks and P2P Distribution. In contrast to prior research,
we focus on the ability of present technology to support distribution quality. Moreover,
we discuss required value chain activities and roles, technological resources, as well as
revenue models and cost structures. Following an inductive approach, we generalize from
business models in practice. We present case studies in order to demonstrate, how these
business models are implemented. This structured business model analysis demonstrates
the different courses of action of providers regarding the IP based distribution of their
content and services.