This document discusses the concept of cloud computing and its implications for the future of work and organizations. It presents cloud computing as a technological paradigm shift that will lower the costs of doing business by allowing companies to decentralize various operations. This may lead to new forms of distributed and networked organizations called "cloud companies." However, fully realizing this potential will require understanding how to design cloud companies from both operational and cultural perspectives. The cloud computing model provides opportunities to rethink 20th century work practices and management styles for 21st century distributed and digital work environments.

1. TEEMU
ARINA
www.tarina.me

2. cloudcompany.cc

3. CLOUD
INTERNET

4. CLOUD COMPUTING
CLIENT Google
Chrome Android iPhone
APPLICATION Salesforce Apple App
Google Apps
Force.com Store
Amazon Web Google
PLATFORM Services App Engine
Amazon EC2 Amazon
INFRASTRUCTURE S3

5. CLOUD COMPUTING
CLIENT Google
Chrome Android iPhone
APPLICATION Salesforce Apple App
Google Apps
Force.com Store
Amazon Web Google
PLATFORM Services App Engine Ref: Guy Rosen
Amazon EC2 Amazon
INFRASTRUCTURE S3

6. CLOUD COMPUTING
CLIENT Google
Chrome Android iPhone
APPLICATION Salesforce Apple App
Google Apps (Q2 2010)
Ref: Zenoss
Force.com Store
Amazon Web Google
PLATFORM Services App Engine
Amazon EC2 Amazon
INFRASTRUCTURE S3

7. CLOUD COMPUTING 314000
APPLICATION
STORE MARKETS
135000
43000
Apple App Store Google Android Nokia OVI
CLIENT Google
Chrome Android Distimo (January 2011)
Ref:
iPhone
APPLICATION Salesforce Apple App
Google Apps
Force.com Store
Amazon Web Google
PLATFORM Services App Engine
Amazon EC2 Amazon
INFRASTRUCTURE S3

8. CLOUD COMPUTING
CLIENT Google
Chrome Android iPhone
APPLICATION Salesforce Apple App
Google Apps SMARTPHONE SALES
WORLDWIDE
Force.com Store
BY OS VENDOR
32.9% Q4 2010
30.6%
Amazon Web Google
PLATFORM Services App Engine
16.0% 14.4%
Amazon EC2 Amazon 3.1% 2.9%
INFRASTRUCTURE S3
Google Nokia Apple RIM Microsoft Other
Ref: Canalys (2011)

9. CLOUD COMPUTING
Widespread adoption of cloud computing could give
the top five EU economies a 763€ billion ($1tn) boost
over five years and create 2.4 million jobs.
– Centre for Economics and Business Research (CEBR) report, Dec 2010

10. CLOUD COMPANY
Cloud Computing
Network Organization
Distributed Worksforce Peer-production
Transparency
Crowdsourcing

11. 20th CENTURY PRACTICES
FOR 21st CENTURY WORK

12. WORK TODAY IS INTERRUPTED
AT LEAST EVERY 15 MINUTES

13. WHERE WE SPEND OUR DAYS...
0.5-2 hours on irrelevant phone calls
0.5-1 hours hallway interruptions
3-4 hours impulsively answering emails
2-4 hour pointless meetings
X
∞ hours IT problems

14. IN ALL PHYSICAL MEETINGS
THERE ARE MORE OR LESS
THE WRONG PEOPLE PRESENT.
Ref: Esko Kilpi

15. IN DIGITAL WORKING ENVIRONMENTS
THERE COULD BE MORE OR LESS
THE RIGHT PEOPLE PRESENT.

16. COMMUNICATION ✖ COORDINATION ✖ RESPONSIBILITY
ALL EFFECTIVE MANAGEMENT & COLLABORATION TODAY IS
DIGITALLY DISTRIBUTED
Ref: Esko Kilpi

17. DIGITAL DECENTRALIZATION LEADS TO A
CLOUD COMPANY
Distributed & Transparent
Technology
Platforms + Communication
Practices
TOOLS CULTURE

18. COMMUNICATIONPARADIGM SHIFT
BEFORE NOW
• Point-to-point • Context-based
• Pre-defined & predictable • Self-organizing & adaptive
• E.g. telefax, phone, email • E.g. social software
WHAT SEQUENCE? WHAT CONTEXT?

19. DISTRIBUTED TECHNOLOGY PLATFORMS
... ... ...
Sales, Marketing, Support: Interactions Ideas: Innovation
Workforce: Collaboration Computing: Automation
Storage: Information Business
Infrastructure
Infrastructure
S3
Dropbox
Ref: In collaboration with Pasi Mäenpää / Elisa

20. APPLICATION PHONES & TABLETS
Cloud-based platforms for personalized work environment customization.

21. PERSONAL KNOWLEDGE MANAGEMENT

22. EFFECTIVE KNOWLEDGE WORK TODAY
IS HERE
Connections
Sharing
Interactions

23. AN ORGANIC ENTERPRISE...
Neural Network Brain
Feeds, Search & APIs Wiki & Shared Workspaces
Socially filtered sensory input. Connecting reflections.
Senses Blood system
Social Networking
Blogs & Communities Optimizing communication
Reflection in and on action. flows and social interaction.
Skeleton
Spirit = Values and Vision.
Operative Technologies
Business process backbone. Muscles = Resources and Funding.

24. ...IN A DIGITAL BUSINESS ECOSYSTEM
Open
Middle
Youniverse
environment
Kingdoms
Industry Social & economic value creation
Organic &
controlled & led community led
Digital business
Safe
Havens
Closed Ref:

25. CLOUD COMPANY MANIFESTO
Cloud is a metaphor for the internet and Cloud Computing is the
metaphor for a technological paradigm shift in the way how we utilize
software and information.
Technology enthusiastics are often pushing an idea based on
Technological Determinism, that this new technology alone would
drive the development of organizational practices, culture and
behavior. However the influence and importance of culture and people
cannot be underestimated. Media theorist Marshall McLuhan
famously said that "We shape our tools. And then our tools shape us."
What the cloud is shaping is our forms of organization, intertwingled
by technology and culture. The cloud will dramatically lower the
transaction costs of doing business. As companies decentralize various
layers including infrastructure, R&D, marketing and sales, they
eventually empower a new form of organization to emerge: the
company as a cloud. What we don’t yet understand is how to design
and shape such an organization, from both operational, technological
and cultural perspectives. Our future might as well depend on it.
In the Cloud, November 2010
Teemu Arina

26. tar1na
cloudcompany.cc
Thanks to:
TEEMU Pasi Mäenpää / Elisa
Esko Kilpi
ARINA Mikko Kaipio / Dicole
Juhani Anttila
Petra Salminen / Dicole
www.tarina.me Sami Viitamäki / DIEGO
teemu@dicole.com