Infrastructure and StorageeCommerce Technology and Application Term Paper             VGSOM, IIT Kharagpur                ...
Table of ContentsIntroduction ...............................................................................................
IntroductionIn this term paper, we study the developments and trends that have taken place in an aroundthe Infrastructure ...
The generally accepted definition of Cloud Computing comes from the National Institute ofStandards and Technology (NIST), ...
•SaaS applications are designed for end-users, delivered over the  Software as a Service                               web...
Figure 2: The Cloud Computing Stratosphere                                             5|Page
Note: The company Dropbox, is listed as an Infrastructure as a Service provider. Dropbox is aWeb-based file hosting servic...
Cloud Computing generally, and SaaS in particular, is a rapidly growing method ofdelivering technology and organizations c...
Characteristics of PaaSSome of the basic characteristics of PaaS include;   Services include application design, developm...
A major difference between IaaS and PaaS is the amount of control over the system availableto users of the services. IaaS ...
      Where there is pressure on the organization to limit capital expenditure and to move to       operating expenditure...
Figure 4: The Public Cloud Market Place                                          11 | P a g e
Figure 5: The Private Cloud Market Place                                           12 | P a g e
Figure 6: The Hybrid Cloud Market PlaceNote: The above three inforgraphics break the cloud into three categories: private/...
Amazon.com, which is widely considered the most innovative provider in the cloudlandscape. It also includes Twitter (as a ...
creating a federated cloud where common standards will be laid down for those in thehardware and software arena."Another i...
provider, at-least until the standards for cloud interoperability get established. Platforms suchas http://cpalcloud.com/,...
rates between SMEs that expect to grow in the next three years (42%) and those solelyfocused on profitability (40%).A mult...
Porter’s 5 force modelExisting Competitive rivalry between suppliers   Software as a Service (SaaS)   Platform as a Servic...
Power of suppliers    Software as a Service (SaaS)    Platform as a Service (PaaS)    Infrastructure as a Service (IaaS)  ...
According to Gartner, by 2013, 80% of businesses will support a workforce using tablets.Fueled by the dramatic early growt...
Works Cited  1. [Online] Diversity Ltd. [Cited: April 15, 2011.]     http://broadcast.rackspace.com/hosting_knowledge/whit...
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Term Paper - Infrastructure and Storage

  1. 1. Infrastructure and StorageeCommerce Technology and Application Term Paper VGSOM, IIT Kharagpur GROUP: INVICTUS ASHISH GOENKA : 06CH3812 VISHNU KOMMA : 06MI3815
  2. 2. Table of ContentsIntroduction ................................................................................................................................ 2Introduction to Cloud Computing .............................................................................................. 2 Software as a Service (SaaS) .................................................................................................. 6 Characteristics of SaaS ....................................................................................................... 6 Platform as a Service (PaaS) .................................................................................................. 7 Characteristics of PaaS ....................................................................................................... 8 Infrastructure as a Service (IaaS) ........................................................................................... 8 Characteristics of IaaS ........................................................................................................ 9The Market Place ..................................................................................................................... 10GAPs & Issues ......................................................................................................................... 14PEST Analysis ......................................................................................................................... 16 Political and Legal factors .................................................................................................... 16 Economic factors .................................................................................................................. 16 Social factors ........................................................................................................................ 17 Technological factors ........................................................................................................... 17Porter’s 5 force model .............................................................................................................. 18 Existing Competitive rivalry between suppliers .................................................................. 18 Threat of new market entrants .............................................................................................. 18 Bargaining power of buyers ................................................................................................. 18 Power of suppliers ................................................................................................................ 19 Threat of substitute products ................................................................................................ 19Conclusion ............................................................................................................................... 19Works Cited ............................................................................................................................. 21 1|Page
  3. 3. IntroductionIn this term paper, we study the developments and trends that have taken place in an aroundthe Infrastructure and Storage space. In the recent times, one of the biggest developments inthe ICT industry is the advent of Cloud Computing. We first introduce cloud computing, itsrepresentation in the form of a stack with Software as a Service (SaaS) at the top, thenPlatform as a Service (PaaS) and finally Infrastructure as a Service (IaaS) at the bottom. Wethen introduce the characteristics of each of the elements of a Cloud Computing Stack.In the later part of the paper, we present the Gaps and Issues in the current Cloud ComputingMarket Place and finally give an analysis of the industry using PEST analysis and Porter’s 5forces model.Introduction to Cloud ComputingCloud Computing is where data or software applications or computer processing power areaccessed from a cloud of online resources. Cloud computing promises to cut operational andcapital costs and, more importantly, let IT departments focus on strategic projects instead ofkeeping the datacenter running by purchasing software and hardware as a utility service.Cloud Computing is closely associated with Web 2.0, in particular, a key element in bothtrends is the emergence of online applications known as Software as a Service. In addition toSaaS, cloud computing also includes the development of Platform as a Service (PaaS) andInfrastructure as a Service (IaaS).The trend of cloud computing has been compared to the development of electricity network acentury ago. At that time, companies have stopped producing their own power and insteadplugged-in to a national electricity grid. In the same way, individuals and organizations cannow connect to a cloud computing resources to fuel their information activities rather than torun software onto their own hardware. It is therefore hardly surprising that cloud computingis also being referred to as utility computing. Cloud computing may signal a return to an ageof centralization with data, applications and processing power largely remote from the userinterface device. 2|Page
  4. 4. The generally accepted definition of Cloud Computing comes from the National Institute ofStandards and Technology (NIST), which essentially says that1, Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.What this means in plain terms is the ability for end users to utilize parts of bulk resourcesand that these resources can be acquired quickly and easily. NIST also offers up severalcharacteristics that it sees as essential for a service to be considered ―Cloud‖. Thesecharacteristics include; On-demand self-service: The ability for an end user to sign up and receive services without the long delays that have characterized traditional IT Broad network access: Ability to access the service via standard platforms (desktop, laptop, tablets, mobile etc.) Resource pooling: Resources are pooled across multiple customers Rapid elasticity: Capability can scale to cope with demand peaks Measured Service: Billing is metered and delivered as a utility serviceIt is important to understand that a solution to be called as a ―Cloud Computing Offering‖, itneeds to demonstrate all of the above characteristics. This is especially important since inrecent years there has been a move by traditional software vendors to market solutions as―Cloud Computing‖ which is generally accepted to not fall within the definition of true CloudComputing, a practice known as ―cloud-washing‖.Cloud Computing is often described as a stack, as a response to the broad range of servicesbuilt on top of one another under the sobriquet ―Cloud‖. The diagram below depicts theCloud Computing stack – it shows three distinct categories within Cloud Computing:Software as a Service, Platform as a Service and Infrastructure as a Service.1 NIST; http://csrc.nist.gov/groups/SNS/cloud-computing/. Retrieved on 15th April, 2011. 3|Page
  5. 5. •SaaS applications are designed for end-users, delivered over the Software as a Service web. •PaaS is the set of tools and services designed to make coding Platform as a Service and deploying those applications quick and efficient. Infrastructure as a •IaaS is the hardware and software that powers it all – servers, Service storage, networks, operating systems etc. Figure 1: The Cloud Computing Stack (1)The following infographic by Horn Group provides an understanding of the companies thatare present in each of the service segments: SaaS, PaaS and IaaS. 4|Page
  6. 6. Figure 2: The Cloud Computing Stratosphere 5|Page
  7. 7. Note: The company Dropbox, is listed as an Infrastructure as a Service provider. Dropbox is aWeb-based file hosting service operated by Dropbox, Inc. that uses cloud computing toenable users to store and share files and folders with others across the Internet using filesynchronization. As we understand by its offering, we consider it to be a SaaS provider,similar to one of its major competitor box.net.Software as a Service (SaaS)Software as a Service (SaaS) is the model in which an application is hosted as a service tocustomers who access it via the Internet. With the software hosted off-site, the user neitherhas to maintain it or support it nor has to worry about integration into other systems. It is outof the users hands when the hosting service decides to change it. The vendor does all thepatching and upgrades as well as keeping the infrastructure running. Some of the SaaSapplications include CRM, Video conferencing, IT service management, Accounting, Webanalytics, Storage, Productivity tools etc.SaaS provides network-based access to commercially available software. Since the softwareis managed at a central location, customers can access their applications wherever they haveweb access. For vendors, SaaS has the appeal of providing stronger protection of theirintellectual property as well as creating a continuous stream of income.Also since the SaaS is community driven, more feature requests take place and the vendor isforced to push in faster releases of new features since the entire community of users benefitsfrom new functionality. The upper hand by the community of users also makes the vendorrecognize best practices and support them.Characteristics of SaaSLike other forms of Cloud Computing, it is important to ensure that solutions sold as SaaS infact comply with generally accepted definitions of Cloud Computing. Some characteristics ofSaaS include; Web access to commercial software. Software is managed from a central location. Software delivered in a ―one to many‖ model. Users are not required to handle the software upgrades and patches. Application Programming Interfaces (APIs) allow for integration between different pieces of software. 6|Page
  8. 8. Cloud Computing generally, and SaaS in particular, is a rapidly growing method ofdelivering technology and organizations considering a move to the cloud should considerwhich applications they move to SaaS. The following solutions are the prime candidates foran initial move to SaaS: ―Vanilla‖ offerings where the solution is largely undifferentiated, such as an email application. For example: Gmail. Applications where there is significant interplay between the organization and the outside world. For example, email newsletter campaign software such as Mail Chimp. Applications that have a significant need for web or mobile access. An example would be mobile sales management software. Software that is only to be used for a short term need. An example would be collaboration software for a specific project. Software where demand spikes significantly, for example tax or billing software used once a month.While SaaS is a very valuable tool, there are certain situations where SaaS faces obstacles toits implementation and use. The first is the situation where there is a need for an applicationwhere extremely fast processing of real time data is required. An organization that has such acomputational need might not be able to find the application available through SaaS. Thesecond is the situation where legislation or other regulation does not permit data being hostedexternally and third, where an existing on-premise solution fulfills all of the organization’sneeds thus eliminating the need for a SaaS application provider.Platform as a Service (PaaS)Platform as a Service (PaaS) brings the benefits that SaaS bought for applications, but over tothe software development world. PaaS supplies all the resources required to buildapplications and services completely from the Internet, without having to download or installsoftware.PaaS is analogous to SaaS except that, rather than being software delivered over the web, it isa platform for the creation of software, delivered over the web. 7|Page
  9. 9. Characteristics of PaaSSome of the basic characteristics of PaaS include; Services include application design, development, testing, deployment, and hosting. PaaS generally offers some support to help the creation of user interfaces, and is normally based on HTML or JavaScript. Multi-tenant architecture where multiple users utilize the same development application and provides automatic facilities for concurrency management, failover, and security. Some PaaS provider services include team collaboration, web service integration, database integration, security, scalability, storage and versioning. Some PaaS provider services, such as Google App Engine, include tools to handle billing and subscription management.PaaS is especially useful in any situation where multiple developers will be working on adevelopment project or where other external parties need to interact with the developmentprocess. PaaS is also useful where developers wish to automate testing and deploymentservices. The popularity of agile software development, a group of software developmentmethodologies based on iterative and incremental development, will also increase the uptakeof PaaS as it eases the difficulties around rapid development and iteration of software. Someexamples of PaaS include Google App Engine, Microsoft Azure Services and the Force.complatform.There are two main obstacles that developers face when considering PaaS. First, becausevendors use proprietary services or development languages, some developers are afraid ofbeing locked into a single provider – a case termed as ―Vendor-Lock-in‖. The vendor mayallow the application to be brought to a different provider; however, the costs are typicallyhigher. Second, is the case when application performance requires customization of theunderlying hardware and software.Infrastructure as a Service (IaaS)Infrastructure as a Service (IaaS) is a way of delivering Cloud Computing infrastructure –servers, storage, network and operating systems – as an on-demand service. Rather thanpurchasing servers, software, datacenter space or network equipment, clients instead buythose resources as a fully outsourced service on demand. 8|Page
  10. 10. A major difference between IaaS and PaaS is the amount of control over the system availableto users of the services. IaaS provides total control, PaaS typically provides no control. Thisalso means virtually zero administration costs for PaaS whereas IaaS has administration costssimilar to a traditional computing infrastructure.Generally IaaS can be obtained as public or private infrastructure or a combination of thetwo. ―Public cloud‖ is considered infrastructure that consists of shared resources, deployed ona self-service basis over the Internet. By contrast, ―private cloud‖ is infrastructure thatemulates some of Cloud Computing features, like virtualization, but does so-on a privatenetwork. Additionally, some hosting providers are beginning to offer a combination oftraditional dedicated hosting alongside public and/ or private cloud networks. Thiscombination approach is generally called ―Hybrid Cloud‖.Characteristics of IaaSSome of the basic characteristics of IaaS include; Resources are distributed as a service: Application resources such as servers, network equipment, memory, CPU, disk space, data center facilities, are provided as a monthly service. Allows for dynamic scaling: Infrastructure scales up and down dynamically based on application resource needs. Utility pricing model: Service is provided as a variable monthly cost using fixed prices per resource component. Generally includes multiple users on a single piece of hardware. Service level agreements between the provider and client, guaranteeing a certain level of performance from the system. Platform virtualization environment allows the clients to run the virtual machines they want.Situations that are particularly suitable for Cloud infrastructure include; Where demand is very volatile – any time there are significant spikes and troughs in terms of demand on the infrastructure. For new organizations without the capital to invest in hardware. Where the organization is growing rapidly and scaling hardware would be problematic. 9|Page
  11. 11.  Where there is pressure on the organization to limit capital expenditure and to move to operating expenditure. For specific line of business, trial or temporary infrastructural needs.While IaaS provides massive advantages for situations where scalability and quickprovisioning are beneficial, there are two situations where its limitations may be problematic.First, when the company is bound by regulatory compliance that makes the offshoring oroutsourcing of data storage and processing difficult and second is the situation where thehighest levels of performance are required, and on-premise or dedicated hosted infrastructurehas the capacity to meet the organization’s needs.The Market PlaceThe following table presents a comparative understanding of the market place in each of theservice segments using a sample of companies from each segment. Software as a Service Customer Type Company Founded in Service Type Enterprise SME Others Revenue Userbase Dropbox 2008 Online Backup Services Low Med High 2 million $ 6 million Box.net 2005 Cloud based Content Management Systems High Med Low 5.2 million $ 4 million Amazon S3 2006 Online Storage Web Service High Med Low 250 million $ Mozy 2005 Online Back Services for Windows and Mac users Med High Low 76 million $ .2 million Carbonite 2005 Remote Backup Services Med High Low 11.3 million $ .1 million Platform as a Service Customer Type Company Founded in Service Type Enterprise SME Others Revenue Userbase force.com 2008 Cloud Platform for developing Business Apps High Med Low 3-5 million in Q4, 2010 0.3 million Infrastructure as a Service Customer Type Company Founded in Service Type Enterprise SME Others Revenue UserbaseAmazon EC2 2006 Cloud Computing Platform High Med Low 500 million $ 15.5 million Figure 3: The Market PlaceThe following is a graphical look at the cloud computing landscape. From private andenterprise cloud providers (such as IBM, HP/3Par, and VMware), to public cloud serviceslike Google and Microsoft Azure), to the Hybrid cloud (Verizon and the NRE Alliance ofnewScale, rPath and Eucalyptus as examples). The infographs are provided by Wikibon.org2.2 The Full-Sized image can be found at http://wikibon.org/blog/cloud-computing-landscape/.Retrieved on 15th April, 2011. 10 | P a g e
  12. 12. Figure 4: The Public Cloud Market Place 11 | P a g e
  13. 13. Figure 5: The Private Cloud Market Place 12 | P a g e
  14. 14. Figure 6: The Hybrid Cloud Market PlaceNote: The above three inforgraphics break the cloud into three categories: private/EnterpriseCloud; public cloud and hybrid cloud. Breaking the cloud landscape into categories givesonly a partial context for what the cloud encompasses. For example, VMware is alsoconsidered a hybrid cloud provider. IBM could fit into both categories, too. Both are listedonly as private cloud providers. It also minimizes the influence of companies such as 13 | P a g e
  15. 15. Amazon.com, which is widely considered the most innovative provider in the cloudlandscape. It also includes Twitter (as a Public Cloud), which is a bit of a stretch.GAPs & IssuesAlong with the benefits, however, there are a number of issues associated with cloudcomputing. One of the key drawbacks of investing in an IT solution is lock-in. A Cloud-lock-in is the level of difficulty associated with moving an application or data from one cloudprovider to anywhere else—to another provider or back to your organization.Wikipedia defines lock-in as the act of making a customer ―dependent on a vendor forproducts and services, unable to use another vendor without substantial switching costs‖.There are different clouds from companies such as Microsoft, Amazon, IBM and Google, buta lack of interoperability between them forces a developer to stick to one particular provider.Apart from this if vendors use proprietary services or development languages, the switchingbecomes all the more difficult.A case in point is Microsofts Azure Services Platform, which provides an operating systemand a set of developer services to build cloud-based applications. With Azure, users write to aset of cloud services in a way thats different from writing to the same services deployed intheir own environments. The calls to the SQL database are different from the calls in Azure.To move to a different provider, users would have to understand how to translate those APIcalls into SQL Server calls3.Even in the case when the vendor doesn’t adopt proprietary services, most cloud providersprovide APIs which are typically well-documented (often under a Creative Commonslicense) but also unique to their implementation and thus not interoperable. The Open CloudConsortium (OCC) is working to develop consensus on early cloud computing standards andpractices. Even organizations such as Open Data Center Alliance, are working towardsdevelopment of standards for cloud computing. Approximately 100 companies, whichaccount for more than $50bn of IT spending, have joined the Alliance, including BMW,Royal Dutch Shell and Marriott Hotels. "The Alliances Cloud 2015 vision is aimed at3 Mark Everett Hall; “Windows Azure: Microsoft banks on programmer loyalty”http://www.computerworld.com/s/article/335508/Banking_on_Programmer_Loyalty. Retrieved on15th April, 2011. 14 | P a g e
  16. 16. creating a federated cloud where common standards will be laid down for those in thehardware and software arena."Another issue with Cloud Computing Service is that of Latency. Latency is a function ofdistances. The closer you are to the cloud, the lower is the latency. A cloud provider thusneeds to have its datacenters located across the world so that they remain closer to the endusers to increase access speeds. In April 2010, Amazon has taken the first steps to expand itsoperations outside the US and Europe by unveiled a new data center in Singapore. This entryto the Asia Pacific region is significant both to a potential new customer base and existingclientele who will reap the benefits of having the opportunity to have a more globalinfrastructure with less latency in Asia Pacific. Amazon CloudFront is a web service thatmakes it easy to distribute content with low latency via a global network of edge locations.Latency issues in India: As Werner Vogels, CTO at Amazon, explains on quora.com,―Latency within India is a complex matter. I have talked to customers who would easily seean increase by 200ms just because their provider would be using some sort of "financialincentive routing" instead of lowest latency of shortest path routing. We have worked withseveral providers of our customers to correct these issues. Companies like redBus, who haverelatively light-weight pages see page load times below 100ms.‖Latency issues can also be mitigated by moving to a cloud that is closer to the target segment.After moving to the cloud and hosting their infrastructure at the AWS Asia Pacific(Singapore) region, the traffic to redBus has increased 3 folds due to reduced latency. ―Thiswould’ve been possible only in a cloud platform due to its elasticity and scalability. It hasalso given us an overall cost benefit of about 30 to 40 percent,‖ claims Charan Padmarajuco-founder and CTO, redBus. There appears to be just one IaaS provider with datacenters withinIndia: InstaCompute(http://iaas.tatacommunications.com/overview/technical-details/), a cloudcomputing solution offering by Tata Communications. Its datacenters are located inHyderabad and Singapore.Another issue with cloud adoption is the lack of a platform where people can comparebetween different Cloud solutions and choose the one which satisfies their needs. Because ofthe advantages and the disadvantages that come with Cloud solution provides, choosing cloudprovider could be daunting task especially because of issues such as vendor-lock-in. As morenumber of organizations transcend from the traditional model to the cloud, there will be aneed for a platform where CIOs could compare, review and adopt a particular service 15 | P a g e
  17. 17. provider, at-least until the standards for cloud interoperability get established. Platforms suchas http://cpalcloud.com/, where CIOs can compare cloud computing services provided bydifferent vendors, is a venture in this area.PEST AnalysisPolitical and Legal factorsWhen personal data is moved to the cloud, it may be stored in multiple jurisdictions aroundthe world. This key characteristic of cloud computing brings a number of its benefits; e.g. itcan minimize the effect of a serious IT failure on a single site. Yet it also raises complianceissues. Acts such as the Data Protection Act 1998 (―DPA‖) in the U.K. and the U.S. PatriotAct have serious implications on the privacy and security of data hosted on cloudinfrastructure.For example, in the UK, the Data Protection Act 1998 (―DPA―) will apply where the datacontroller is established in the UK or where the data controller is established outside theEuropean Economic Area (EEA) but the equipment used to process personal data is locatedin the UK. Under the DPA, data controllers cannot transfer personal data outside the EEAunless either the destination country offers an ―adequate‖ level of protection for individuals’personal data or one or more pre-conditions are met such as: (a) they have obtained informedconsent from the data subjects for that transfer; (b) where the cloud provider is in the US, it iscertified under the FTC-enforced Safe Harbor regime; or (c) adequate contractual protectionsbased on European Commission approved terms are in place with the cloud provider.Amazon harmonizes the legal environment by deploying local infrastructure and allowingcustomers to select "availability zones."Economic factorsA recent trend has been increasing shift to cloud infrastructure adoption to reduce CapitalExpenditure by Enterprises, SMEs and Startups into Operating Expenditure. According toMicrosofts ―SMB Cloud Adoption Study 2011‖, which investigates how cloud computingwill impact SMEs, one out of every 10 small businesses expect to be paying for at least onecloud service by 2014, while the number of cloud services paid for will double in this time.The 2011 study indicates that in most countries, cloud service adoption is not limited toSMEs that see themselves as fast growers. The study showed little difference in adoption 16 | P a g e
  18. 18. rates between SMEs that expect to grow in the next three years (42%) and those solelyfocused on profitability (40%).A multi-tenancy model is adopted by different vendors to ensure lower costs for customers.Also as Cloud computing being viewed as a commodity and also being capital intensive (theIaaS), the prices are kept generally low and finally the utility based pricing or the ―pay peruse‖, capability to build up cost according to the actual consumption of resources is a relevantfeature of cloud computing.Social factorsSome of the social factors around increasing cloud adoption is the increased demand for high-bandwidth applications, data storage and sharing functionality among end users. Also theincrease in the number of local startups delivering local content but requiring high computinginfrastructure has led to Cloud Computing adoption.Another prominent reason is an increasing environmental awareness and the concept of―Green Computing‖. Talking of energy reduction and carbon footprint savings, cloudcomputing is also inevitable because it is more green. Today, most internal companydatacenters run their servers at around thirty per cent capacity. In contrast, the servers in alarge cloud datacenter typically run at eighty per cent capacity or more. This means that lessenergy is wasted, with the carbon footprint of each unit of computing power being reduced.Technological factorsCloud computing is a natural evolution of the widespread adoption of virtualization, service-oriented architecture, autonomic and utility computing. Apart from this, the Open SourceSoftware has provided the foundation for many cloud computing implementations.In the storage space, techniques such as data deduplication, a specialized data compressiontechnique for eliminating coarse-grained redundant data, have been adopted to improvestorage utilization. In the deduplication process, duplicate data is deleted, leaving only onecopy of the data to be stored, along with references to the unique copy of data. Deduplicationis able to reduce the required storage capacity since only the unique data is stored. This hasenabled several storage service providers to increase their profitability. Also data storage hasbecome incredibly cheaper. For example, Box.net, a cloud-based content managementsolution provider, is now providing 5GB(from 1GB) of free online storage space for personaluseand 500GB(from 15GB) for Businesses at the same price. 17 | P a g e
  19. 19. Porter’s 5 force modelExisting Competitive rivalry between suppliers Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High High High Presence of large number Heavy competition for Industry experts predict a of players and minimal building the largest loyal max of 5 pan-global functional difference application developer base players and several between player offerings regional/national playersThreat of new market entrants Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High Medium Low, because of high risk and high initial capital requirement Very low time-to-market, Barrier created by industry less initial investment giants although Innovation High, because of increase required and low exit could surpass the barriers in resellers, third party barriers applications and libraries - Regional/National players might emergeBargaining power of buyers Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High Low High Community of users drive Issues such as vendor-lock- Viewed as a commodity, application features and in because of no cloud and relies on volumes to low switching costs interoperability standards improve utilization and and use of proprietary profitabilitygh development languages; high switching costs 18 | P a g e
  20. 20. Power of suppliers Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High, with PaaS; Vendor- Medium Low lock-in Largely undifferentiated No cloud interoperability offering standards, thus switching Medium with IaaS; No is difficult and sometimes cloud interoperability costly, although IaaS standards, thus switching provider needs to is difficult, although IaaS demonstrate the assured provider needs to quality level of service in demonstrate assured terms or uptime, reliability quality level of service and conformance to Service Level Agreements (SLAs).Threat of substitute products Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Low Low Moderate No substitutes to develop Cloud Computing is still in and sell apps any other growth stage way than through application development platformsConclusionIt is clear that Cloud Computing would play a major role in the next 10 years or so. Themajor reasons are: more and more enterprises look to outsource their IT For new organizations without the capital to invest in hardware. Where the organization is growing rapidly and scaling hardware would be problematic. Where there is pressure on the organization to limit capital expenditure and to move to operating expenditure. For specific line of business, trial/experimental or temporary infrastructural needs. 19 | P a g e
  21. 21. According to Gartner, by 2013, 80% of businesses will support a workforce using tablets.Fueled by the dramatic early growth of Apple iPads, media tablets are poised to growdramatically. Almost every major PC and smartphone manufacturer has launched or isplanning to introduce a media tablet offering. The low price of media tablets means buyerswill not have to rely on the product as a primary device, instead using it where itsconvenience offers distinct benefits. Given the low prices and high end-user satisfaction,users would adopt media tablets in high volumes.This would in turn generate demand for applications that are remotely accessible and thatwould consume less power without compromising on the functionality, the result, cloudadoption by various software providers and reoffering their solutions in terms of Software asa Service (SaaS). We can also witness an increase in the number of cloud based applicationsthat utilize the enormous computing power of the cloud and deliver the output directly on aniPad or an iPhone; even IaaS providers, such as Rackspace, have developed iPad and iPhoneapplications that would enable IT specialists to control their virtual machines directly throughtheir mobile devices.One of the key characteristics of the companies in the SaaS marketplace, which is plagued byimmense competition, is that the companies are highly focused in their service offering. Forexample, Dropbox offers a web-based file hosting service that uses cloud computing to storeand share files and folders with each other. They have made products for each and everynetwork device (PCs/Mac/iPhone/iPad/Android/Linux) so that the users could use theirservice without worrying on the type of platform they are on. Although they could haveprovided additional services (1) along with the one they currently provide, they refrained to doso.In comparison to previous computing eras and paradigms, cloud computing potentially alsooffers many advantages. Cloud computing is also likely to be far more environmentallyfriendly than many currently mainstream computing practices. Although there are manyissues currently with the Cloud Computing solutions, the landscape may soon change asstandards, both in terms of implementation and interoperability, are developed.Cloud Computing levels the playing field by providing enterprise level infrastructure to themasses. This has indeed leaded to the development of powerful applications that could beaccessed via the internet. Cloud Computing would very well enable the next generation ofcomputing developments like augmented reality, visual search and artificial intelligence. 20 | P a g e
  22. 22. Works Cited 1. [Online] Diversity Ltd. [Cited: April 15, 2011.] http://broadcast.rackspace.com/hosting_knowledge/whitepapers/Understanding-the- Cloud-Computing-Stack.pdf. 2. Quora. [Online] [Cited: April 15, 2011.] http://www.quora.com/Dropbox/Why-is- Dropbox-more-popular-than-other-programs-with-similar-functionality. 3. "Top Predictions for IT Organizations and Users, 2011 and Beyond: IT’s Growing Transparency". s.l. : Gartner, 2011. 4. Explaining Computers.com; [Online] [Cited: April 15, 2011.] http://www.explainingcomputers.com/cloud.html. Retrieved on 15th April, 2011 5. TaylorWessin; [Online] [Cited: April 15, 2011.] http://www.taylorwessing.com/fileadmin/files/docs/Cloud_computing.pdf 6. Wikipedia; [Online] [Cited: April 15, 2011.] http://en.wikipedia.org/wiki/Cloud_computing 7. Mary Brandel; [Online] [Cited: April 15, 2011.] ―The Trouble with Cloud: Vendor Lock-in‖ http://www.cio.com/article/488478/The_Trouble_with_Cloud_Vendor_Lock_in?page =1&taxonomyId=3112 8. Varsha Chidambaram; [Online] [Cited: April 15, 2011.] ―redBus Gained Competitive Edge With Its Infrastructure on AWS Cloud‖ http://www.cio.in/case- study/taking-their-infra-cloud-helped-redbus-use-it-create-real-business-value 9. Sumner Lemon; [Online] [Cited: April 15, 2011.] ―Amazon Web Services Sees Infrastructure as Commodity‖ http://www.pcworld.com/article/196016/amazon_web_services_sees_infrastructure_a s_commodity.html 10. [Online] [Cited: April 15, 2011.] ―Four out of 10 small businesses to be in the cloud by 2014‖ http://www.itweb.co.za/index.php?option=com_content&view=article&id=42900:fou r-out-of-10-small-businesses-to-be-in-the-cloud-by-2014&catid=244 11. Jon Brodkin; [Online] [Cited: April 15, 2011.] ―Consortium tackles cloud computing standards‖ http://www.networkworld.com/news/2009/010709-cloud-computing- standards.htm 21 | P a g e

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