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Cloud Computing

What is Cloud Computing & why should anyone care? MGT Khalil Fadil Matta University of Notre Dame3

What is Cloud Computing? It is having the development, building, computing and storing data and applications delivered over the internet, on demand from massive data centers. It is taking computing from in-house to a network of processors & storage centers that might exist anywhere in the world. In effect, the network becomes the computer. The network where you store and process the data is the cloud. The service is reliable, simple, ubiquitous, capacious, and often free. MGT Khalil Fadil Matta University of Notre Dame4

Cloud Computing Applications we all have used and are used to Facebook Dropbox e-bay Priceline MGT Khalil Fadil Matta University of Notre Dame5

Why we should care about Cloud Computing? Massive (scale) and flexible capabilities (scalability) Relative cheap pricing and you pay for only what you use Outsource infrastructure applications like & productivity tools to free in house IT for Strategic applications Vendor responsible for fixing problems, backup & recovery and for updating the product Most up-to-date version of the product is always available to the user Allows for specialization and efficiencies associated with that MGT Khalil Fadil Matta University of Notre Dame6

Categorizing the cloud Infrastructure Applications Processes Private vs. Public MGT Khalil Fadil Matta University of Notre Dame7

Companies that should consider the cloud Don’t have a large IT department or strong IT expertise When time is of essence to get an application up and going When it is a stand-alone application – no need to integrate with others When needs are variable (cyclical demand, fast growth, uncertain demand) When prior or legacy apps don’t exist MGT Khalil Fadil Matta University of Notre Dame8

Why did it take so long to take off? MGT Khalil Fadil Matta University of Notre Dame9

Problems with Cloud Computing Lack of right infrastructure Resistance to change Loss of control Bad experience with ASPs Moving mission critical applications to the cloud Inability to integrate with in house software Reliability (loss of data) (loss of access to data) Security Possibly more costly in long run Operating expense rather than a capital asset MGT Khalil Fadil Matta University of Notre Dame10

The players Google popularized cloud computing when it offered Gmail and later by offering Google docs. Amazon now offers “Simple Storage Service” and “Elastic Compute Cloud” that it rents to small corporations & startups. IBM offers “Blue Cloud” that has massive computing capabilities targeting Fortune 500 companies. Microsoft Office Live is its foray into Cloud Computing! Dropbox offers a tiered payment system to store stuff Salesforce offers software-as-a-service UPS, Fed Ex, Accenture, Amazon offer functional or process cloud computing processes MGT Khalil Fadil Matta University of Notre Dame11

MAKING MONEY ON CLOUD COMPUTING: SOFTWARE AS A SERVICE (SAAS) ALSO KNOWN AS UTILITY COMPUTING SALESFORCE.COM MGT Khalil Fadil Matta University of Notre Dame12

What is SaaS? Why should anyone care? MGT Khalil Fadil Matta University of Notre Dame13

What is SaaS? They use a different method to deliver software to business user. Instead of selling software like one sells a car or stereo with a manual, they rent the software usage to companies and individuals. The software is housed and managed at the company’s own facilities. The web is used to interface with the software used. The financial model involves charging a fixed rate per user per month about to gain access to the software. MGT Khalil Fadil Matta University of Notre Dame14

How is SaaS different that other Cloud Computing applications Enterprise Class Software Application Specific Cloud There is a charge to use You know where it is stored and by whom Customer service & support provided MGT Khalil Fadil Matta University of Notre Dame15

What are the Advantages & Disadvantages of the SaaS business model to users? MGT Khalil Fadil Matta University of Notre Dame16

Advantages of SaaS Ease of deployment Time of deployment Little startup costs Well defined cost structure – no ahead of time investment required Ease to change & upgrade Availability & Reliability Try before you build Predictability Web interface Lower risk Ease of scalability The responsibility belongs with the vendor Optimize hardware design on the software being rented Cost (remember that 80% of any software cost is deployment, maintenance & training) especially in the short run MGT Khalil Fadil Matta University of Notre Dame17

Disadvantages of SaaS Outsource mission critical functions Lack of control and customization Integration with other on demand vendor software No differentiation with competitors Potentially more costly as a function of time MGT Khalil Fadil Matta University of Notre Dame18