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    How Cloud ComputingHow Cloud ComputingIs Changing the WorldIs Changing the World

    BUS 890BUS 890: Robin B.: Robin B. ThieuThieu

    Business WeekBusiness Week

    August 4, 2008August 4, 2008

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    Article SummaryArticle Summary

    A major shift in the way companies obtain software and computingcapacity is under way as more companies tap into Web-basedapplications

    Merrill Lynch: 2012 = the annual global market for cloud computing willsurge 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

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    Cloud ComputingCloud Computing

    A definition refers to any situation inwhich computing is done in a

    remote location (out in theclouds), rather than on yourdesktop or portable device.

    You tap into that computing power over anInternet connection.

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

    Web browser pioneerMarc Andreessen

    Source: http://www.businessweek.com

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    Cloud UsersCloud Users

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

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

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

    Individual programmers and users: using Facebook or Amazons datacenters to run own applications, blogs, data

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    Cloud StructureCloud Structure

    Source: http://news.cnet.com

    Cloud Benefits:

    Cloud = Less Investment

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

    Cloud = Scale

    (tens of thousands ofserver computers)

    Cloud = Flexible andEfficiency

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    Chapter 8: Strategies for competing inChapter 8: Strategies for competing inemerging industriesemerging industries

    - IBM spend $360million to build acloud computingdata center

    - Dell

    - Google Appsfor Free

    - Amazons pricesstart at 20cents

    - Microsoft'smantra is"software plusservices"

    - AT&T

    - Google ally IBM &Salesforce.com

    - HP's purchaseof Opsware

    Technology Adopting

    Acquire orAlliance

    Pricing

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    PQ + CQ > IQ--------------------------------------------------------The World is Flat Thomas Friedman

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    ReferencesReferences

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

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

    usiness Week.Retrieved August 6, 2008, fromhttp://www.businessweek.com/magazine/content/08_18/b4082059989191.htm

    Aaron Ricadela (2007, November 16). Computing Heads for the Clouds. BusinessWeek. Retrieved August 6, 2008, fromhttp://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, fromhttp://online.wsj.com/article/SB121790207112112419.html?mod=rss_whats_news_us

    Martin LaMonica (2008, March 25). Is cloud computing more than just smoke? CnetNews.com. Retrieved August 6, 2008, fromhttp://news.cnet.com/8301-10784_3-9902616-7.html?hhTest=1