Benefits, Players, and Challenges of Cloud Computing and SaaS, Slides of Information Technology

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Cloud Computing

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.

Cloud Computing Applications we

all have used and are used to

• Facebook
• Dropbox
• e-bay
• Priceline

Categorizing the cloud

• Infrastructure
• Applications
• Processes
• Private vs. Public

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

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

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

What is SaaS? Why should

anyone care?

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.

What are the Advantages &

Disadvantages of the SaaS

business model to users?

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