BUS 890: Robin B.

Thieu Business Week August 4, 2008

How Cloud Computing Is Changing the World

Article 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 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 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 Amazons data centers to run own applications, blogs, data

Cloud Structure
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

Source: http://news.cnet.com

Chapter 8: Strategies for competing in emerging industries

- IBM spend $360 million to build a cloud computing data center - Dell - Microsoft's mantra is "software plus services" - AT&T

- Google ally IBM & Salesforce.com - HP's purchase of Opsware

- Google Apps for Free - Amazons prices start at 20cents

Q + CQ > IQ
------------------------------------------------------The World is Flat Thomas Friedman

References

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 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