Introduction to Cloud Computing Business & Technology Timothy Chou © 2010 by Active Book Press 2nd Edition All rights reserved. ,6%1 Printed in the United States of America Contents ACKNOWLEDGEMENTS..........................................................................V INTRODUCTION.................................................................................... VIII SEVEN BUSINESS MODELS......................................................................1 MODEL ONE: TRADITIONAL.........................................................................3 MODEL TWO: OPEN SOURCE........................................................................5 MODEL THREE: OUTSOURCING....................................................................7 MODEL FOUR: HYBRID. ...............................................................................9 MODEL FIVE: HYBRID+ .............................................................................14 MODEL SIX: SOFTWARE AS A SERVICE ......................................................15 MODEL SEVEN: INTERNET .........................................................................17 COST OF SOFTWARE...................................................................................18 SUMMARY..................................................................................................22 APPLICATION CLOUD SERVICES .......................................................24 COLLABORATION .......................................................................................25 WEBEX STORY .............................................................................................26 FINANCIAL APPLICATIONS .........................................................................28 CONCUR STORY...........................................................................................29 NETSUITE STORY .........................................................................................30 HUMAN RESOURCE APPLICATIONS ............................................................31 KENEXA STORY............................................................................................32 TALEO STORY..............................................................................................33 SUCCESSFACTORS STORY.............................................................................35 CRM FOR MARKETING ..............................................................................36 VOCUS STORY .............................................................................................37 OMNITURE STORY .......................................................................................38 CONSTANT CONTACT STORY ........................................................................40 CRM FOR SALES ........................................................................................42 SALESFORCE.COM STORY.............................................................................42 CRM FOR SERVICE ....................................................................................43 RIGHTNOW TECHNOLOGIES STORY ..............................................................45 VERTICAL APPLICATIONS ..........................................................................48 DEALERTRACK STORY .................................................................................51 BLACKBAUD STORY .....................................................................................52 i OPENTABLE STORY......................................................................................53 CLOUD SERVICE STACK .............................................................................54 SUMMARY..................................................................................................56 DATA CENTER...........................................................................................57 NETWORK CLOUD SERVICES......................................................................58 NTT STORY .................................................................................................61 POWER QUALITY........................................................................................63 POWER UTILIZATION EFFICIENCY ..............................................................64 POWER CARBON FOOTPRINT ......................................................................67 PG&E STORY .............................................................................................69 AVAILABILITY MANAGEMENT ...................................................................69 SECURITY MANAGEMENT ..........................................................................70 AT&T STORY ..............................................................................................71 ECONOMICS................................................................................................72 SUMMARY..................................................................................................74 COMPUTE & STORAGE CLOUD SERVICES ......................................75 COMPUTE & STORAGE CLOUD SERVICES...................................................76 VIRTUAL MACHINE ....................................................................................80 SECURITY MANAGEMENT ..........................................................................82 TD BANKNORTH STORY ...............................................................................83 PUBLIC AND PRIVATE CLOUDS...................................................................83 IBM STORY .................................................................................................84 HIGH GROWTH APPLICATIONS ...................................................................86 PEAKY APPLICATIONS................................................................................87 PARALLEL APPLICATIONS ..........................................................................88 HP STORY...................................................................................................90 TODAY’S CLOUDS ARE SMALL...................................................................91 COMPUTER CARBON FOOTPRINT................................................................91 SUMMARY..................................................................................................95 PLATFORM SERVICES FOR SOFTWARE DEVELOPMENT...........97 APPLICATION SPECTRUM ...........................................................................98 MULTI-TENANCY......................................................................................101 SOFTWARE DEVELOPMENT LIFECYCLE ....................................................104 HORIZONTAL PLATFORM SERVICES .........................................................106 MICROSOFT AZURE STORY.........................................................................110 GOOGLE APPENGINE STORY......................................................................111 VERTICAL PLATFORM SERVICES ..............................................................113 SALESFORCE.COM STORY...........................................................................113 FACEBOOK STORY .....................................................................................117 NETSUITE STORY.......................................................................................120 TESTING ...................................................................................................122 CUSTOMIZATION ......................................................................................125 TRADITIONAL VS. CLOUD DEVELOPMENT................................................129 ii SUMMARY................................................................................................131 PLATFORM SERVICES FOR OPERATIONS .....................................133 CHANGE MANAGEMENT ..........................................................................137 EBAY STORY ..............................................................................................139 AVAILABILITY MANAGEMENT .................................................................142 PERFORMANCE MANAGEMENT ................................................................145 SECURITY MANAGEMENT ........................................................................146 CARE REHAB STORY ..................................................................................148 MEXICO STORY .........................................................................................149 CUSTOMER SERVICE ................................................................................150 SEARCH-BASED APPLICATIONS ................................................................151 SUMMARY................................................................................................155 MARKETING ............................................................................................156 ECONOMICS OF SALES & MARKETING .....................................................157 TRADITIONAL SALES & MARKETING .......................................................158 EMAIL MARKETING..................................................................................160 E-LOAN STORY ..........................................................................................161 SEARCH MARKETING ...............................................................................162 SOCIAL MEDIA MARKETING ....................................................................163 GET NOTORIOUS