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How Cloud Computing Is Changing The World

Cloud computing is a major new trend where companies obtain computing power and software applications from the internet instead of hosting their own systems. By 2012, the global market for cloud computing is projected to surge to $95 billion annually. While security and reliability present challenges, cloud computing allows companies to reduce costs by avoiding building their own data centers and hardware. It also provides flexibility and ability to easily scale computing resources. Many companies like Starbucks, 50 Cent, and the US Olympic Committee are already using cloud services.

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202 views8 pages

How Cloud Computing Is Changing The World

Cloud computing is a major new trend where companies obtain computing power and software applications from the internet instead of hosting their own systems. By 2012, the global market for cloud computing is projected to surge to $95 billion annually. While security and reliability present challenges, cloud computing allows companies to reduce costs by avoiding building their own data centers and hardware. It also provides flexibility and ability to easily scale computing resources. Many companies like Starbucks, 50 Cent, and the US Olympic Committee are already using cloud services.

Uploaded by

api-3741719
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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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 Amazon’s 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 - Microsoft's


million to build a mantra is
cloud computing "software plus
data center services"

- Dell - AT&T

- Google ally IBM & - Google Apps


Salesforce.com for Free

- HP's purchase - Amazon’s prices


of Opsware 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

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