cloud computing -Strategic Case Study

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<ul><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 1/18</p><p>Strategic turn to monetize</p><p>cloud computingCase Study for Strategic Management</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 2/18</p><p>ABSTRACT</p><p>Cloud computing has the potential to be the next major driver of business</p><p>innovation, as it promises to enable new business models and services across almost</p><p>all industries, especially telecommunications, healthcare and government. As well</p><p>as it opens new customer segment to cloud provider. Cloud has the potential to</p><p>become the next major driver of business innovation by enabling entirely new</p><p>business models across a wide range of industries. The cloud computing market will</p><p>include offerings sold as a service such as business processes, software, platform,</p><p>and infrastructure. And many of these cloud services will be consumed through a</p><p>pay-per-usage pricing model. The cloud market is appealing to new entrants notonly because of its size and growth, but also due to the business potential it brings</p><p>to a company. Cloud providers benefit by accessing new customers and markets,</p><p>improving their deployment times, potentially lower their costs and achieving new</p><p>revenue streams.</p><p>We have analyze cloud service provider strategies by evaluating their business</p><p>models for cloud computing services/offerings, strategies operations and target</p><p>customers.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 3/18</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 4/18</p><p>WHAT IS CLOUDCOMPUTING</p><p>Cloud computing i Int net ed computing, whereby shared</p><p>resources, software, and information are provided to computers and</p><p>other devices on demand.</p><p>Cloud computing describes a new supplement, consumption, and delivery</p><p>model for IT services based on the Internet</p><p>The concept behind cloud computing is very simple: itlets you run your business</p><p>computer applications over the Internet, without having to buy, install or manage</p><p>your own servers. You can run your companys IT operations with nothing more</p><p>than a browser and an Internet connection. Applications, operating systems, servers</p><p>and network switches all are available from within the cloud.</p><p>The benefits of adapting Cloud Computing for any business are great. Here</p><p>are some of them.</p><p>y Quickturnaround or deploymenttime to be up and runningy Increased availability of high-performance applications to small/medium-</p><p>si ed businesses Applications like ERP, CRM or ecommerce applications</p><p>which were out of reach for Small and Medium businesses are now</p><p>available at a fraction of a cost.</p><p>yReduced implementation and maintenance costs since you pay as you go !</p><p>y Increased Storage on demand / Flexible and scalable infrastructuresy Greening ofthe data center/ Reduced Energy costsy Highly Automated - No longer do IT personnel need to worry about</p><p>keeping software up to date.</p><p>y GreaterMobility to your Workforce - Employees can access informationwhereverthey are, wheneverthey want.</p><p>y Allows Businesses to Focus on their core competencyy Optimum Performance - The cloud adjusts to your companys performance</p><p>needs, dynamically assigning capacity whenever and wherever you need</p><p>them, and automatically adjusting to spikes in your business.</p><p>y Security For many companies, the level of security and availability,disaster recovery and back-up provided by a software-as-a-service provider</p><p>far exceeds that which they can provide themselves.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 5/18</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 6/18</p><p>___________________________________________________________ ___</p><p>Element consider to form winning strategyfor cloud market</p><p>To win in the cloud market requires an innovative business strategy and business</p><p>model. The strategies reflect a rethinking of market fundamentals and truly envisionnew models to better serve customers.</p><p>We will see a wide range of cloud business models emerge overthe next few years,</p><p>and most ofthese will likely fail. Ofthe ones that survive, the profitability ofthe</p><p>business models will vary greatly. A few winning business models will maintain</p><p>healthy profit margins while others will find themselves relegated to much smaller,</p><p>commodity-based profit margins</p><p>There are three key components that define cloud business models:</p><p>CUSTOMER FUNCTION: Cloud Delivered Services- what a company sell i.e.</p><p>their product</p><p>CUSTOMER GROUP: Target Markets- to whom it would be sell i.e. their</p><p>customers</p><p>TECHNOLOGY:Operations- how to create and deliver what one sell</p><p>And to successfully implementation of business model a good strategy would be</p><p>require. Strategy of all cloud vendors would be to create long-term value.</p><p>________________________________________CUSTOMER FUNCTION: Cloud Delivered Service</p><p>The first component of a cloud provider strategy is to clearly outline the service that</p><p>will be offered. Most cloud enabled solutions will have four layers in their</p><p>solution stack:</p><p>Content</p><p>Process and applications</p><p>Integration and middleware</p><p>Infrastructure and devices</p><p>Cloud provider mainly tries to outline competitive advantage for each layer. These</p><p>layers divide the cloud marketinto following sub market:-</p><p>Business-Process as a Service (BPaaS). Deliver an entire business process</p><p>as a service via the Internet. Examples include payroll, printing and e-</p><p>commerce from providers.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 7/18</p><p> Software as a Service (SaaS). Deliver a standardi ed application running ona cloud infrastructure, with multi tenancy, accessible from various client</p><p>devices through a thin client interface such as a Web browser (e.g., web-</p><p>based email). Target customer would be ENDUSER</p><p>Platform as a Service (PaaS). Build and deploy new internally developed</p><p>applications onto cloud infrastructure, exposing services needed to build an</p><p>effective application including billing and sign-on services used by</p><p>APPLICATION DEVELOPER</p><p>Infrastructure as a Service (IaaS). Obtain processing, storage networks, and</p><p>other fundamental computing resources as a service where the consumer is</p><p>able to deploy and run elements ofthe stack, such as operating systems, on</p><p>the infrastructure service. Mainly for NETWORK ARCHITECTS</p><p>Since A single company does not have to be the owner or operator of all four</p><p>solution layers. Hence, a key part of developing a cloud strategy is to define</p><p>which component(s) you will provide and which components will be provided</p><p>by a business partner thats why partnership-based business models normally</p><p>seen in cloud market.</p><p>In addition to direct cloud services, there is a wide range of support cloud services</p><p>and components typically offered by outside providers, such as consulting firms,</p><p>but also delivered by cloud service providers themselves. These services includetraining and consulting For example, SalesForce.com offers training and consulting</p><p>to complementits SaaS and PaaS offerings.</p><p>_______________________________</p><p>CUSTOMER FUNCTION-Target market</p><p>There are many potential target markets for cloud adoption Most current cloud</p><p>providers narrow down their respective markets to some combination of the</p><p>following segments:</p><p>Industry or Functional Verticals among Large Enterprises</p><p>While currently focused more on internal cloud enablement some large enterprises</p><p>will migrate toward adopting shared cloud verticals that reduce cost or riskin areas</p><p>that are importantto the business, but are not key sources of differentiation, such as</p><p>back office functions or regulatory compliance. For example, pharmaceutical</p><p>companies could join forces via an industry vertical cloud focused on regulatory</p><p>compliance to drive cost savings and efficiency.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 8/18</p><p>SMBs</p><p>Many workloads offer the least pain and most significant gain for the SMB</p><p>segment. Cloud providers are targeting smaller customers who can benefit from</p><p>clouds compelling economies of scale, and who are less hindered by large, existing</p><p>IT capabilities. Financial services companies have strong relationships with their</p><p>customers, and could use this delivery model for business services</p><p>Emerging Markets</p><p>With limited resources, customers in developing markets will respond to the lower</p><p>up-front investment costs and ability to scale service consumption in times of</p><p>growth. For example, automotive manufacturers could use cloud to reach</p><p>dealerships in distant markets.</p><p>Other Cloud Providers</p><p>Cloud services serve as building blocks, where a provider sells one cloud service to</p><p>another cloud providerto construct a larger service offering. IaaS providers often</p><p>align with SaaS providers to jointly deliver a more comprehensive cloud services.</p><p>Such as Red Hat sell their platform to Microsoft.</p><p>Consumers</p><p>Mobile devices, online email and other consumer services benefit from numerous</p><p>new applications made available through cloud delivery models.</p><p>The another choice for cloud provider that whether establish their market for a</p><p>public cloud or provide a private cloud.</p><p>Well demand is rising for public cloud services around HR benefits procurement, e-</p><p>commerce, data warehousing and archiving.</p><p>___________________ </p><p>TECHNOLOGY-Operation</p><p>The operations component of a cloud business modelincludes the development of</p><p>key elements needed to deliver business services via the cloud. This includes</p><p>business operations and financial reporting designed to be more agile by more</p><p>quickly engaging customers, tailoring services to fit customer needs pricing for</p><p>smaller units of a service, and establishing a viable financial model.</p><p>The operating model of the business strategy defines the sourcing model,</p><p>partnership strategy, and deployment plan forthe development ofthese capabilities.</p><p>Many providers are pursuing strategic partnerships to round out their capabilities</p><p>and achieve the operational requirements associated with rapid service delivery.</p><p>Alliances and partnerships are often keys to success in the cloud ecosystem.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 9/18</p><p>__________</p><p>STRATEGY</p><p>Service provider strategies focus towards address pricing models, go-to-market</p><p>approaches, business intent and value propositions, in addition to defining servicesand customers.</p><p>Current cloud providers are capitali ing on first-mover advantage. They are</p><p>delivering services, learning from their mistakes, and capturing market share along</p><p>the way. Some oftheir success has been at the expense of traditional players who</p><p>have not ventured into the cloud marketplace.</p><p>One of the defining aspects of cloud computing is pay-per-use pricing models.</p><p>However, variations are possible within this basic tenet of cloud. For example,</p><p>some providers priced base on their brand and reputation ratherthan purely basedon hourly usage rates.</p><p>The challenge is determining how to measure this value and how to capture that</p><p>value through pricing.</p><p>Some cloud providers are offering cloud-based services directly to customers.</p><p>Others are acting as enablers and integrators by providing their products and</p><p>services as building blocks for other cloud service providers to then sellto their own</p><p>customers.</p><p>Another consideration for go to market strategy is targeting the right decision</p><p>maker for the particular type of service delivered. Providers have tailor their</p><p>offerings and value proposition based on the target buyer. Cloud providers are</p><p>deploy new services to their customers in days .</p><p>Well main focus is to differentiate their product.</p><p>Let us consider cloud offering of few vendors to understand how different cloud</p><p>vendor differentiate their product and targeted to whom, and what are their</p><p>strategies to sustain in market forlong run and their competition.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 10/18</p><p>1.Amazon</p><p>Type ofCloud: Public Cloud</p><p>Type of Service:IaaS</p><p>Key Offerings:EC2 , S3, Simple DB and Map Reduce</p><p>Specializes in IaaS. It offers through Amazon Web Services (AWS): AmazonElastic</p><p>Compute Cloud(EC2), AmazonSimpleDB, AmazonCloudFront, AmazonSQS. It claims to</p><p>have 82 billion objectsstoredin AmzonS3 (SimpleStorageService)</p><p>As ondate theyare the onlyprovider to offereverything .</p><p>Amzaon is the undisputed winner, without any much competition till now. We maycallit an early-bird advantage.</p><p>2.Microsoft</p><p>Type of Cloud: Private Cloud,Public</p><p>Type of Service: SaaS,PaaS and IaaS</p><p>Key Offering: Online Service, Windows Azure Platform and Windows Server</p><p>Hyper-V,Office Window apps.</p><p>Specializes in PaaS. It offers Azure, a Windows-as-a-service platform consisting</p><p>of the operating system and developer services that can be used to build and</p><p>enhance Web-hosted applications. Azure is available for VS 2008 viaWeb</p><p>Platform Installer. Visual Studio 2010 Beta 2 has all the features we need to</p><p>code, debug, and deploy our cloud service.</p><p>Microsoft strategy has the right portfolio and articulates the right story to allthe</p><p>entities in the ecosystem. Microsoft has always dominated is the operatingsystem. It started on the desktop, moved to the server, and now it is moving</p><p>into the cloud</p><p>Microsoft made a majorleap with the release ofOffice Web Apps, a cloud-based</p><p>version ofits Office software. Web Apps lets users to upload documents from their</p><p>computerto Microsofts cloud-based Docs.com, and allows accessibility from anymachine or device. Here the documents will also be stored in remote serverinstead</p><p>of being stored only in personal computers, laptops or company server. Except for</p><p>the security factor of sharing important files on the web, it will prove to be a good</p><p>improvement.</p></li><li><p>8/7/2019 cloud computing -Strategic Case Study</p><p> 11/18</p><p>__________________________________________________________________</p><p>Microsoft charge price for the components of its Azure cloud computing platform,which is consumption-based computing costs are slightly lower than Amazon's</p><p>costs, but, Amazon's Linux-based service undercuts Microsoft's Windows pricing.</p><p>However, Amazon's Linux-based offering is $0.10 per computing hour, and it also</p><p>charges slightly less for storage than Microsoft. There are many analyses going on</p><p>around the web about how these pricing strategies will play out over time.</p><p>___________________________________________________________________</p><p>3.Google</p><p>Type of Cloud:Public CloudType of Service: Saas and PaaS</p><p>Key Offerings: Google Apps and Google App Engine</p><p>Specializes in PaaS &amp; SaaS. As SaaSit offers Google Apps: a web-basedcommunication, collaboration &amp; security apps which includes, Gmail, Google</p><p>Calendar, Google Talk, Google Docs &amp; Google Sites. 15 Sep 2009, Googleannounced that it will provide GovCloud, which will host Google Apps in aseparate data environment with enhanced encryption for meeting state andgovernment security standards.</p><p>As PaaS it offers Google App Engine: a platform for developing and hosting webapplications in Google-managed data centers. Currently, the supportedprogramming languages are Python andJava (by extension otherJVM languagesare also supported).</p><p>You build your application using Googles PaaS and Google handles deploying</p><p>code to a cluster, monitoring, failover, and launching application instances asnecessary. Good news, Google App Engine is free, but only up t...</p></li></ul>

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