The Business Impact of the Cloud Computing – Part 2

I attended the 10th international CloudExpo in mid-June. This was the first time that CloudExpo brought Big Data into the conference and drew more than 7,000 attendees at the Jacob Javits Center in New York. In my blog post “The Business Impact of the Cloud Computing,” I reflected on my experience at the CloudExpo 2011; I wanted to use this blog to update readers with the new trends I observed this year.

Cloud space has been evolving in the following ways:

  • The Big Data topic has become popular
  • Cloud bursting has become a popular term since demand grew for hybrid Cloud
  • Businesses have started to use more than one Cloud vendor. Therefore, Cloud Management tools have become more attractive
  • New players are aggressively promoting their products. For example: Oracle
  • Success stories sell products; new players could get clients from existing vendors through utilizing them
  • Open sources are increasingly promoted and appreciated
  • Security was still a focus of conversation

What are the implications of the new business impacts according to the trend?

  • Researchers can obtain results faster with the power of elastic Cloud Computing. It impacts the medical, mobile, energy and computing fields. For example, a new drug formula to cure cancer could be formulated with increased speed, but the Food and Drug Administration (FDA) approval process might be too slow to match. This could create a big business impact to the whole life cycle of the new drug introduction and the health industry.
  • Big Data can quickly reflect customers’ needs, and businesses will be under pressure to balance exploitation and exploration to become a more ambidextrous organization [1]. The business impact will show up on the budgeting, organizational structure, product life cycle, and partner relationships.
  • The open source trend can engage more developers to join the creation of Cloud products. It enables fast development and creates management challenges. Businesses will have to maintain balance between openness and quality/security. The business impact will be on the product life cycle and its relationship with its partners.
  • In the competitive Cloud space, aggressive promotion is used to boosts brand recognition. For example: When logged into Wi-Fi during the conference, we were directed to the Softlayer home page. That triggered the user’s curiosity to find out what Softlayer could offer. This promotion meets the expectations the generation Y [2] has for checking out new products easily. The business impact is that businesses will be pushed to adapt more customer oriented marketing.

In summary, new trends bring new business opportunities and challenges. Forrester [1] predict Cloud Services growth as follows:

  • The Software as a Service (SaaS) market is estimated to grow from $21.2 billion in 2011 to $92.8 billion in 2016.
  • The Platform as a Service (PaaS) market is estimated to grow from $0.8 billion in 2011 to $12 billion in 2016.
  • The Infrastructure as a Service (IaaS) market is estimated to grow from $2.9 billion in 2011 to $5.7 billion in 2016.*

Businesses that can adapt and move fast will have a better chance to win in the fast-changing Cloud and Big Data worlds.

Have you incorporated cloud into your business? Are you leveraging Big Data?
[1] Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change by Michael Tushman.
[2] Generation Y: the Millennial Generation
[3] ”Sizing the Cloud”; the Forrester report April 21, 2011

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