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How Cloud Computing Is Changing the World

Atul Sood EN Deptt.

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

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.
Internet connection.

You tap into that computing power over an

"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


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

Acquire or Alliance


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

PQ + CQ > IQ
The World is Flat Thomas Friedman


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+news_top+news+index_top+story 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.ht m 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_u s 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