cloud computing -strategic case study

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  • 8/7/2019 cloud computing -Strategic Case Study


    Strategic turn to monetize

    cloud computingCase Study for Strategic Management

  • 8/7/2019 cloud computing -Strategic Case Study



    Cloud computing has the potential to be the next major driver of business

    innovation, as it promises to enable new business models and services across almost

    all industries, especially telecommunications, healthcare and government. As well

    as it opens new customer segment to cloud provider. Cloud has the potential to

    become the next major driver of business innovation by enabling entirely new

    business models across a wide range of industries. The cloud computing market will

    include offerings sold as a service such as business processes, software, platform,

    and infrastructure. And many of these cloud services will be consumed through a

    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

    to a company. Cloud providers benefit by accessing new customers and markets,

    improving their deployment times, potentially lower their costs and achieving new

    revenue streams.

    We have analyze cloud service provider strategies by evaluating their business

    models for cloud computing services/offerings, strategies operations and target


  • 8/7/2019 cloud computing -Strategic Case Study


  • 8/7/2019 cloud computing -Strategic Case Study



    Cloud computing i Int net ed computing, whereby shared

    resources, software, and information are provided to computers and

    other devices on demand.

    Cloud computing describes a new supplement, consumption, and delivery

    model for IT services based on the Internet

    The concept behind cloud computing is very simple: itlets you run your business

    computer applications over the Internet, without having to buy, install or manage

    your own servers. You can run your companys IT operations with nothing more

    than a browser and an Internet connection. Applications, operating systems, servers

    and network switches all are available from within the cloud.

    The benefits of adapting Cloud Computing for any business are great. Here

    are some of them.

    y Quickturnaround or deploymenttime to be up and runningy Increased availability of high-performance applications to small/medium-

    si ed businesses Applications like ERP, CRM or ecommerce applications

    which were out of reach for Small and Medium businesses are now

    available at a fraction of a cost.

    yReduced implementation and maintenance costs since you pay as you go !

    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

    keeping software up to date.

    y GreaterMobility to your Workforce - Employees can access informationwhereverthey are, wheneverthey want.

    y Allows Businesses to Focus on their core competencyy Optimum Performance - The cloud adjusts to your companys performance

    needs, dynamically assigning capacity whenever and wherever you need

    them, and automatically adjusting to spikes in your business.

    y Security For many companies, the level of security and availability,disaster recovery and back-up provided by a software-as-a-service provider

    far exceeds that which they can provide themselves.

  • 8/7/2019 cloud computing -Strategic Case Study


  • 8/7/2019 cloud computing -Strategic Case Study


    ___________________________________________________________ ___

    Element consider to form winning strategyfor cloud market

    To win in the cloud market requires an innovative business strategy and business

    model. The strategies reflect a rethinking of market fundamentals and truly envisionnew models to better serve customers.

    We will see a wide range of cloud business models emerge overthe next few years,

    and most ofthese will likely fail. Ofthe ones that survive, the profitability ofthe

    business models will vary greatly. A few winning business models will maintain

    healthy profit margins while others will find themselves relegated to much smaller,

    commodity-based profit margins

    There are three key components that define cloud business models:

    CUSTOMER FUNCTION: Cloud Delivered Services- what a company sell i.e.

    their product

    CUSTOMER GROUP: Target Markets- to whom it would be sell i.e. their


    TECHNOLOGY:Operations- how to create and deliver what one sell

    And to successfully implementation of business model a good strategy would be

    require. Strategy of all cloud vendors would be to create long-term value.

    ________________________________________CUSTOMER FUNCTION: Cloud Delivered Service

    The first component of a cloud provider strategy is to clearly outline the service that

    will be offered. Most cloud enabled solutions will have four layers in their

    solution stack:


    Process and applications

    Integration and middleware

    Infrastructure and devices

    Cloud provider mainly tries to outline competitive advantage for each layer. These

    layers divide the cloud marketinto following sub market:-

    Business-Process as a Service (BPaaS). Deliver an entire business process

    as a service via the Internet. Examples include payroll, printing and e-

    commerce from providers.

  • 8/7/2019 cloud computing -Strategic Case Study


    Software as a Service (SaaS). Deliver a standardi ed application running ona cloud infrastructure, with multi tenancy, accessible from various client

    devices through a thin client interface such as a Web browser (e.g., web-

    based email). Target customer would be ENDUSER

    Platform as a Service (PaaS). Build and deploy new internally developed

    applications onto cloud infrastructure, exposing services needed to build an

    effective application including billing and sign-on services used by


    Infrastructure as a Service (IaaS). Obtain processing, storage networks, and

    other fundamental computing resources as a service where the consumer is

    able to deploy and run elements ofthe stack, such as operating systems, on

    the infrastructure service. Mainly for NETWORK ARCHITECTS

    Since A single company does not have to be the owner or operator of all four

    solution layers. Hence, a key part of developing a cloud strategy is to define

    which component(s) you will provide and which components will be provided

    by a business partner thats why partnership-based business models normally

    seen in cloud market.

    In addition to direct cloud services, there is a wide range of support cloud services

    and components typically offered by outside providers, such as consulting firms,

    but also delivered by cloud service providers themselves. These services includetraining and consulting For example, offers training and consulting

    to complementits SaaS and PaaS offerings.


    CUSTOMER FUNCTION-Target market

    There are many potential target markets for cloud adoption Most current cloud

    providers narrow down their respective markets to some combination of the

    following segments:

    Industry or Functional Verticals among Large Enterprises

    While currently focused more on internal cloud enablement some large enterprises

    will migrate toward adopting shared cloud verticals that reduce cost or riskin areas

    that are importantto the business, but are not key sources of differentiation, such as

    back office functions or regulatory compliance. For example, pharmaceutical

    companies could join forces via an industry vertical cloud focused on regulatory

    compliance to drive cost savings and efficiency.

  • 8/7/2019 cloud computing -Strategic Case Study



    Many workloads offer the least pain and most significant gain for the SMB

    segment. Cloud providers are targeting smaller customers who can benefit from

    clouds compelling economies of scale, and who are less hindered by large, existing

    IT capabilities. Financial services companies have strong relationships with their

    customers, and could use this delivery model for business services

    Emerging Markets

    With limited resources, customers in developing markets will respond to the lower

    up-front investment costs and ability to scale service consumption in times of

    growth. For example, automotive manufacturers could use cloud to reach

    dealerships in distant markets.

    Other Cloud Providers

    Cloud services serve as building blocks, where a provider sells one cloud service to

    another cloud providerto construct a larger service offering. IaaS providers often

    align with SaaS providers to jointly deliver a more comprehensive cloud services.

    Such as Red Hat sell their platform to Microsoft.


    Mobile devices, online email and other consumer services benefit from numerous

    new applications made available through cloud delivery models.

    The another choice for cloud provider that whether establish their market for a

    public cloud or provide a private cloud.

    Well demand is rising for public cloud services around HR benefits procurement, e-

    commerce, data warehousing and archiving.




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