Cloud computing distributes computing over a network as a practice. Applications run on a large number of computers at a time remotely versus just your own computer. Think of what you’re doing when you use Spotify, Dropbox, or other popular streaming and storage services. All this is happening across remote servers and computers across a network versus playing songs versus playing them on your local hard drive via iTunes. This has become a big deal in recent years because the cost of storage and computing has dropped dramatically, to tie in Moore’s Law.
Various cloud computing platforms and associated services offered by Amazon.com. What most people would call website hosting. Amazon provides various cloud computing services to private companies and also services federal government contracts. Includes services to store data, store data and feed into website, secure payments, etc. that would be very difficult to build individually or to manage across different vendors. Public versus Private cloud service.
Early entry into market in 2006 Large portfolio and infrastructure of dozens services Commands huge clients Zynga, Netflix, tmz, eventbrite, dropbox, reddit, airbnb, bms, loinsgate, cdc, nasajpl, adobe, spotify, cdc, capgemini, CIA, federal govt(CIA $600 million alone) Seattle Times Capacity AWS, has more than five times the combined capacity of its next 14 rivalsHigher investments on than next principle rival ($12 billion versus $1.4 billion) since 2005 (Business Insider)
Weaknesses:Public Cloud Business Only Outages (WSJ) Netflix Complexity for Customers Price and Service Breadth http://www.networkworld.com/news/2013/010313-amazon-outages-265481.html Ppl don’t know how profitable it is http://gigaom.com/2012/04/27/how-big-is-amazon-web-services-bigger-than-a-billion/
Growing market for big business $300 billion dollar a year business http://www.reuters.com/article/2013/05/15/us-amazon-cloud-analysis-idUSBRE94E05N20130515 ForrestorResearchdfGrowing suite of products that that complement it http://techcrunch.com/2013/04/11/cloudcheckr-raises-2m-to-help-aws-customers-analyze-resources-costs-and-security/ Continued investments Japan and more data centers Spin off into own business http://tech.fortune.cnn.com/2012/05/22/aws/ File storage costs less in the cloud with lowering prices so businesses want to move to the cloud http://aws.amazon.com/resources/analyst-reports/
Continuous downward pricing on hardwareServices that make it easier to not work a big player like amazon that offers “AWS but in a non-metered, non-rental-based package, can bring horizontal scalability and other cloud benefits to private clouds in a relatively painless manner, then we could see many companies decide that they’d rather take advantage of Moore’s Law and buy their own transistors instead of renting them from Amazon and others.” http://gigaom.com/2013/05/24/how-amazons-cloud-competitors-are-trying-to-find-cracks-in-awss-armor Challengers from Niche and LargeplayersMicrosoft and Rackspace are listed in the "visionaries" category, while telco-oriented providers Verizon Terremark and Savvis are in the "challengers" quadrant, along with Dimension Data. Joyent, Tier 3, Virtustream, Fujitsu, SoftLayer (now owned by IBM), GoGrid, HP and IBM are considered "niche players" by Gartner.Since 2005, Google has spent $20.9 billion on its infrastructure. Microsoft? J ust shy of $18 billion. Amazon? Roughly $12 billion.While more than Rackspace's $1.4 billion cumulative capital expenditures, Amazon's spending is a far cry from what both Google and Microsoft have spent Pricing Wars and Profits (Network World) Prism anxiety movement toward private cloud Shift toward NoSQLnonrelational databases (Barrons)
What is Cloud Computing?
Business Model and Figures