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How Cloud ComputingHow Cloud ComputingIs Changing the WorldIs Changing the World

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

Business WeekBusiness WeekAugust 4, 2008August 4, 2008

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Article SummaryArticle Summary

A major shift in the way companies obtain software and computingcapacity is under way as more companies tap into Web-basedapplications

Merrill Lynch: 2012 = the annual global market for cloud computing willsurge 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

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Cloud ComputingCloud Computing

A definition refers to any situation inwhich computing is done in aremote location (out in theclouds), rather than on yourdesktop or portable device.

You tap into that computing power over anInternet connection.

"The cloud is a smart, complex, powerful computingsystem in the sky that people can just plug into."

Web browser pioneerMarc Andreessen

Source: http://www.businessweek.com

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Cloud UsersCloud Users

Starbucks: using the Salesforce.com platform to create its new MyStarbucks Idea Web site as an online community.

Rapper 50 Cent: using Ning service to set up a custom-designed sitefor 200,000 fans

The U.S. Olympic Committee: using AT&T services to handle a busytraffic during the games

Individual programmers and users: using Facebook or Amazons datacenters to run own applications, blogs, data

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Cloud StructureCloud Structure

Source: http://news.cnet.com

Cloud Benefits:

Cloud = Less Investment

(not own data center,hardware; use outsideprovider of servers,storage, and bandwidth)

Cloud = Scale

(tens of thousands ofserver computers)

Cloud = Flexible andEfficiency

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Chapter 8: Strategies for competing inChapter 8: Strategies for competing in

emerging industriesemerging industries

- IBM spend $360million to build acloud computingdata center

- Dell

- Google Appsfor Free

- Amazons pricesstart at 20cents

- Microsoft'smantra is"software plusservices"

- AT&T

- Google ally IBM &Salesforce.com

- HP's purchaseof Opsware

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Q + CQ > IQ-------------------------------------------------------

The World is Flat Thomas Friedman

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ReferencesReferences

Rachael King (2008, 4, 8). How cloud computing is changing the world. BusinessWeek. Retrieved August 6, 2008, fromhttp://www.businessweek.com/technology/content/aug2008/tc2008082_445669.htm?cha

Steve Hamm (2008, April, 24). Cloud Computing: Eyes on the Skies. Business Week.

Retrieved August 6, 2008, fromhttp://www.businessweek.com/magazine/content/08_18/b4082059989191.htm

Aaron Ricadela (2007, November 16). Computing Heads for the Clouds. BusinessWeek. Retrieved August 6, 2008, fromhttp://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, fromhttp://online.wsj.com/article/SB121790207112112419.html?mod=rss_whats_news_us

Martin LaMonica (2008, March 25). Is cloud computing more than just smoke? CnetNews.com. Retrieved August 6, 2008, fromhttp://news.cnet.com/8301-10784_3-9902616-7.html?hhTest=1