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BUS 890: Robin B.


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

 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 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


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 for Free

- HP's purchase - Amazon’s prices

of Opsware 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