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Infrastructure and Storage Group: Invictus Vishnu Komma (06MI3815) & Ashish Goenka (06CH3812)
Topics to be discussed Brief Introduction Existing Companies in this space GAP in the existing Market PEST Analysis Porter‟s 5 Force Model for the industry Business Proposal
Cloud Computing NIST defines Cloud Computing as: “Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” It is basically the ability for end users to utilize parts of bulk resources and that these resources can be acquired quickly and easily. Characteristics are On-demand self-service Broad network access Resource pooling Rapid elasticity Measured Service
Service Segment Companies SaaS – Software as a Service (Platform , Scaling and Hardware transparent) PaaS – Platform as a Service (Hardware Provisioning Hidden – Automatic Scaling) IaaS – Infrastructure as a Service (Programmatic Interface for Hardware Provisioning)
SaaS – Software as a Service Web access to commercial software Software is managed from a central location delivered in a “one to many” model Users not required to handle software upgrades and patches APIs allow for integration between different pieces of software Generally priced on a per-user basis, and often with additional fees for extra bandwidth and storage More feature requests and faster releases of new features since the entire community of users benefits from new functionality Recognized best practices since the community of users drives the software publisher to support the best practice
IaaS - Infrastructure as a Service Application resources such as servers, network equipment, memory, CPU, disk space, data center facilities, are provided as a monthly service - resources are distributed as a service Infrastructure scales up and down dynamically based on application resource needs - allows for dynamic scaling. Service is provided as a variable monthly cost using fixed prices per resource component - utility pricing model Enterprise Level Infrastructure allows mid-size companies to benefit from the resource pools Generally includes multiple users on a single piece of hardware Commodity-driven and capital intense – keeps the prices low
The Market Place Software as a Service Customer Type Company Founded in Service Type Enterprise SME Others Revenue Userbase Dropbox 2008 Online Backup Services Low Med High 2 million $ 6 million Box.net 2005 Cloud based Content Management Systems High Med Low 5.2 million $ 4 million Amazon S3 2006 Online Storage Web Service High Med Low 250 million $ Mozy 2005 Online Back Services for Windows and Mac users Med High Low 76 million $ .2 million Carbonite 2005 Remote Backup Services Med High Low 11.3 million $ .1 million Platform as a Service Customer Type Company Founded in Service Type Enterprise SME Others Revenue Userbase force.com 2008 Cloud Platform for developing Business Apps High Med Low 3-5 million in Q4, 2010 0.3 million Infrastructure as a Service Customer Type Company Founded in Service Type Enterprise SME Others Revenue Userbase Amazon EC2 2006 Cloud Computing Platform High Med Low 500 million $ 15.5 million
GAP in the existing Market Shifting from one Cloud Service provider to another is not so easy(Vendor-Lock-in) Cloud Computing Standards Organizations such as Open Data Center Alliance are working towards development of standards for cloud computing Latency Issues Latency is a function of distances and “hops” across routers. The closer you are to a cloud, the lower the latency Lack of a platform where people can compare between different Cloud solutions and choose the one which satisfies their needs New ventures in this area: www.cpalcloud.com.
Privacy and Security advocates criticize the way in which the host companies can “monitor” at will, lawfully or unlawfully, the communication and data stored between the user and the host company.
Amazon harmonizes the legal environment by deploying local infrastructure and allowing customers to select "availability zones."
Multi-tenancy model is adopted to ensure lower costs for customers
Increasing shift to cloud infrastructure adoption to reduce Capital Expenditure
Increased demand for high-bandwidth applications and data storage and sharing among the end users
Rise of local startups delivering local content but requiring high computing infrastructure
Increasing environmental awareness and the concept of “Green Computing”.
Virtualization enabling the Clouds have matured to production standards and leading to highly scalable infrastructure
Data storage continues to get speed and capacity boosts - all the while coming down in cost and physical size, Techniques such as „data deduplication‟ have been adopted to improve storage utilization.
Box.net is now providing 5GB(from 1GB) of free online storage space for personal use and 500GB(from 15GB) for Businesses at the same price.
Porter’s 5 Force Model Existing competitive rivalry between suppliers
Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High High High Presence of large number Heavy competition for Industry experts predict a of players and minimal building the largest loyal max of 5 pan-global functional difference application developer base players and several between player offerings regional/national players
Porter’s 5 Force Model Threat of new market entrants
Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High Medium Low, because of high risk and high initial capital requirement Very low time-to-market, Barrier created by industry less initial investment giants although Innovation High, because of increase required and low exit could surpass the barriers in resellers, third party barriers applications and libraries - Regional/National players might emerge
Porter’s 5 Force Model Bargaining power of buyers
Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High Low High Community of users drive Issues such as vendor- Viewed as a commodity, application features and lock-in because of no and relies on volumes to low switching costs cloud interoperability improve utilization and standards and use of profitabilitygh proprietary development languages; high switching costs
Porter’s 5 Force Model Power of suppliers
Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) High, with PaaS; Vendor- Medium Low lock-in No cloud interoperability Largely undifferentiated offering standards, thus switching Medium with IaaS; No is difficult and sometimes cloud interoperability costly, although IaaS standards, thus switching provider needs to is difficult, although IaaS demonstrate the assured provider needs to quality level of service in demonstrate assured terms or uptime, reliability quality level of service and conformance to Service Level Agreements (SLAs).
Porter’s 5 Force Model Threat of substitute products
Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Low Low Moderate Cloud Computing is still in No substitutes to develop growth stage and sell apps any other way than through application development platforms