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A basic introduction to the cloud designed for Accoutancy Ireland,
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Cloud Computing -A Gentle Introduction
Joe DrumgooleTwitter: jdrumgoole
Blog: http://joedrumgoole.com/blog
A Gentle Introduction to Cloud Computing 2
Nothing New Under the Sun
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What is new with the Cloud?
• Search• Media Sharing• Social Networking• Global Distribution• Ridiculously cheap storage and compute• Utilisation of Cognitive Surplus
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The Old Distribution Method
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The Dell Business Model
Swap all the 100 Watt Bulbs to 80 Watts
What’s cheaper than owning a computer?
Not owning a computer
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Computing in the 90’s
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Computing in Noughties
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Web 1.0 was about Web 2.0 was about Web 3.0 is about
Reading Writing APIs
Companies Communities Social graphs
Client-server Peer to peer Publish/Subscribe
Home pages Blogs Status
Taxonomy Tags Recommendations
Owning Sharing Mashups
Netscape Google Facebook
Web forms Web applications Mobile applications
Dialup Broadband 3G
Hardware costs Bandwidth costs Lifetime value
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Cloud Computing Terms
SaaS Software as a Service SalesForce, Gmail
PaaS Platform as a Service Force.com, Azure, App Engine
Iaas Infrastructure as a Service Amazon AWS, RackSpace
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SaaS
• Pay as you Go• Capex to Opex• No long term commitments• No hardware• No installation• No integration (usually)
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Instead
• Browser Wars• Plugin Wars• Data extraction concerns• Privacy and Security issues• Uptime
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Business Models
• Pure Play Pay : Salesforce.com• Freemium : Flickr, Evernote, Dial2Do• Advertising : Gmail• Hybrids of all the above
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Conversion Ratios
• 10,000,000 Page Views• 1,000,000 Registrations• 100,000 users• 1000 paying customers• Conversion ratios of 2-3% are average• 10% is super stellar
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Important to Remember
• In advertising based business models you the user are the product
• The product you use (e.g. Facebook) is the packaging
• As an individual you have zero control
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What does This Mean?
• CAPEX -> OPEX• Asset free businesses• Low burn companies• Old IT rules don’t apply• Your customers are moving online• Cost bases are dropping
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Direct Impacts
• Statutory requirements for accounts• 7 years recording keeping• Still a necessity for paper copies of everything• What is your cost ratio compared to others?
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Specific Opportunities
• Online Email : Google Apps• Document Sharing : Drop Box• Contact Management : SugarCRM• Project Management : Basecamp• Management Accounts : FreeAgentCentral,
AccountsIQ
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Summary
• Its so cheap to compute your teeth will hurt• The desktop is dead• SaaS + mobile = Future• Microsoft Office + TAS Books may not be the
only solution
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