In the next Section II we will describe the nature of the general purpose technol- ogy represented by cloud computing, its genesis and its likely impact on the econo- my and on the structure of many markets. As we will see, the introduction of cloud computing is going to reduce drastically the fixed costs of entry and production, turning part of them into variable costs related to the production necessities. This will have a positive impact on entry and competition in all sectors where fixed ICT spending is crucial. The positive association between ICT innovations and competi- tion is well known, and policymakers recognize that it may.
