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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,'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


Cloud Users

Starbucks: using the 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


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 & - HP's purchase of Opsware

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

Q + 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 Steve Hamm (2008, April, 24). Cloud Computing: Eyes on the Skies. Business Week. Retrieved August 6, 2008, from Aaron Ricadela (2007, November 16). Computing Heads for the Clouds. Business Week. Retrieved August 6, 2008, from Andrew Lavallee (2008, August 5). AT&T to be provider of cloud computing. Wall Street Journal. Retrieved August 6, 2008, from Martin LaMonica (2008, March 25). Is cloud computing more than just smoke? Cnet Retrieved August 6, 2008, from