How Cloud Computing Is Changing the World

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How Cloud Computing
Is Changing the World

BUS 890
: Robin B.
Thieu


Business Week

August 4, 2008

Article Summary


A major shift in the way companies obtain software and computing
capacity is under way as more companies tap into Web
-
based
applications



Merrill Lynch: 2012 = the annual global market for cloud computing will
surge to $95 billion

(
Microsoft=$51 bil, Google=$16 bil, Amazon=$14 bil, Yahoo=$7 bil
)



Security and reliability are big challenges



"There's a whole industry emerging,“


says Marc Benioff, Salesforce.com's CEO

Cloud Computing


A definition refers to
any situation in
which computing is done in a
remote location (out in the
clouds), rather than on your
desktop or portable device
.



You tap into that computing power over an
Internet connection.


"
The cloud is a smart, complex, powerful computing
system in the sky that people can just plug into.
"

Web browser pioneer
Marc Andreessen

Source:
http://www.busi nessweek.com


Cloud Users


Starbucks
: using the Salesforce.com platform to create its new My
Starbucks Idea Web site as an online community.



Rapper 50 Cent
: using Ning service to set up a custom
-
designed site
for 200,000 fans



The U.S. Olympic Committee
: using AT&T services to handle a busy
traffic during the games



Individual programmers and users
: using Facebook or Amazon’s data
centers to run own applications, blogs, data

Cloud Structure

Source:
http://news.cnet.com


Cloud Benefits:



Cloud = Less Investment


(not own data center,
hardware; use outside
provider of servers,
storage, and bandwidth)



Cloud = Scale


(tens of thousands of
server computers)



Cloud = Flexible and
Efficiency

Chapter 8: Strategies for competing in





emerging industries

-

IBM spend $360

million to build a

cloud computing

data center


-

Dell

-

Google Apps

for Free


-

Amazon’s prices

start at 20cents

-

Microsoft's

mantra is

"software plus

services"


-

AT&T

-

Google ally IBM &

Salesforce.com


-

HP's purchase

of
Opsware

Technology

Adopting

Acquire or
Alliance

Pricing


PQ + CQ > IQ

--------------------------------------------------------



The World is Flat



Thomas Friedman

References


Rachael King (2008, 4, 8).
How cloud computing is changing the world
.
Business
Week.
Retrieved August 6, 2008, from
http://www.businessweek.com/technology/content/aug2008/tc2008082_445669.htm?cha
n=top+news_top+news+index_top+story



Steve Hamm (2008, April, 24).
Cloud Computing: Eyes on the Skies
.
Business Week.

Retrieved August 6, 2008, from
http://www.businessweek.com/magazine/content/08_18/b4082059989191.htm



Aaron Ricadela (2007, November 16).
Computing Heads for the Clouds
.
Business
Week.

Retrieved August 6, 2008, from
http://www.businessweek.com/technology/content/nov2007/tc20071116_379585.htm



Andrew Lavallee (2008, August 5).
AT&T to be provider of cloud computing
.
Wall
Street Journal.

Retrieved August 6, 2008, from
http://online.wsj.com/article/SB121790207112112419.html?mod=rss_whats_news_us



Martin LaMonica (2008, March 25).
Is cloud computing more than just smoke?
Cnet
News.com.
Retrieved August 6, 2008, from
http://news.cnet.com/8301
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