How Cloud Computing How Cloud Computing Is Changing the WorldIs Changing the World

BUS 890BUS 890: Robin B. Thieu: Robin B. Thieu

Business WeekBusiness Week

August 4, 2008August 4, 2008

Article SummaryArticle 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

Cloud ComputingCloud 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

Cloud UsersCloud 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

Cloud StructureCloud Structure

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 Chapter 8: Strategies for competing in emerging industries emerging industries

- IBM spend $360 million to build a cloud computing data center

- Dell

- IBM spend $360 million to build a cloud computing data center

- Dell

- Google Apps for Free

- Amazon’s prices start at 20cents

- Google Apps for Free

- Amazon’s prices start at 20cents

- Microsoft's mantra is "software plus services"

- AT&T

- Microsoft's mantra is "software plus services"

- AT&T

- Google ally IBM & Salesforce.com

- HP's purchase of Opsware

- Google ally IBM & Salesforce.com

- HP's purchase of Opsware

PQ + CQ > IQ--------------------------------------------------------

“The World is Flat” – Thomas Friedman

ReferencesReferences

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