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

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.businessweek.com

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

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

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 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 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

- 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

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?chan=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/8301-10784_3-9902616-7.html?hhTest=1

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?chan=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/8301-10784_3-9902616-7.html?hhTest=1