Live for today as if it is your
last day but plan for tomorrow
as if it will last forever!
Cloud Computing
What is Cloud Computing &
why should anyone care?
MGT 30660 Khalil Fadil Matta
University of Notre Dame
3
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.
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
4
Cloud Computing Applications we
all have used and are used to
Facebook
 Dropbox
 e-bay
 Priceline
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
5
Why we should care about Cloud
Computing?
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Massive (scale) and flexible capabilities (scalability)
Relative cheap pricing and you pay for only what
you use
Outsource infrastructure applications like e-mail &
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 30660 Khalil Fadil Matta
University of Notre Dame
6
Categorizing the cloud
Infrastructure
 Applications
 Processes
 Private vs. Public
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
7
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
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
8
Why did it take so long to take
off?
MGT 30660 Khalil Fadil Matta
University of Notre Dame
9
Problems with Cloud Computing
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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 30660 Khalil Fadil Matta
University of Notre Dame
10
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
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
11
MAKING MONEY ON CLOUD
COMPUTING:
SOFTWARE AS A SERVICE (SAAS)
ALSO KNOWN AS UTILITY
COMPUTING
SALESFORCE.COM
MGT 30660 Khalil Fadil Matta
University of Notre Dame
12
What is SaaS? Why should
anyone care?
MGT 30660 Khalil Fadil Matta
University of Notre Dame
13
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.
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
14
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
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
15
What are the Advantages &
Disadvantages of the SaaS business
model to users?
MGT 30660 Khalil Fadil Matta
University of Notre Dame
16
Advantages of SaaS
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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 30660 Khalil Fadil Matta
University of Notre Dame
17
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
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MGT 30660 Khalil Fadil Matta
University of Notre Dame
18