Cloud Computing

Why Become a Cloud Provider?

Why Become a Cloud Provider?

Make a lot of money
o Economies of scale allows companies make tidy profits.

Leverage existing investment

o Adding Cloud Computing services on top of existing infrastructure provide a new revenue stream.

Why Become a Cloud Provider?

Defend a franchise
o As conventional server and enterprise applications embrace Cloud Computing, venders with established franchise in those applications would be motivated to provide a cloud option of their own.

Leverage customer relationship

o Providing Cloud Computing offering to existing customers preserves both parties investment in the customer relationship

Cloud Computing Economics

Elasticity: Shifting Risk Comparing Costs: Should I Move to the Cloud?

Cloud Computing Economics

Elasticity: Shifting the Risk

Cloud Computing Economics

Comparing Costs: Should I Move to the Cloud?
Is it more economical to move my existing datacenter-hosted service to the cloud, or keep it in a datacenter?

Cloud Computing Economics

Comparing Costs: Should I Move to the Cloud?
Pay Separately Per resource
o Pay-as-you-go Cloud Computing lets you charge separately for each type of resource (CPU, Storage, N/W bandwidth, reducing the waste of under utilization

Power, cooling and physical costs

o The costs of power, cooling and the amortized cost of the building total $6.00 when purchasing Vs. $1.20 to $1.50 on Cloud per month

Operating costs
o Support and maintenance costs are shifted to the cloud provider