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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

PaaS - Platform as a Service

Services include application design, development, testing,

deployment, and hosting.

PaaS generally offers some support to help the creation of

user interfaces, and is normally based on HTML or JavaScript.

Multi-tenant architecture where multiple users utilize the same

development application and provides automatic facilities for

concurrency management, failover, and security.

Some PaaS provider services include team collaboration, web

service integration, database integration, security, scalability,

storage and versioning.

Some PaaS provider services, such as Google App Engine,

include tools to handle billing and subscription management

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

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

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

Company Founded in Service Type Enterprise SME Others Revenue Userbase

Amazon EC2 2006 Cloud Computing Platform High Med Low 500 million $ 15.5 million

Customer Type

Customer Type

Customer TypePlatform as a Service

Infrastructure as a Service

Software as a Service

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.

PEST Analysis Political

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."

Economic

Multi-tenancy model is adopted to ensure lower costs for customers

Increasing shift to cloud infrastructure adoption to reduce Capital Expenditure

Social

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”.

Technical

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)

High

Presence of large number of players and minimal functional difference between player offerings

Platform as a Service (PaaS)

High

Heavy competition for building the largest loyal application developer base

Infrastructure as a Service (IaaS)

High

Industry experts predict a max of 5 pan-global players and several regional/national players

Porter’s 5 Force Model

Threat of new market entrants

Software as a Service (SaaS)

High

Very low time-to-market, less initial investment required and low exit barriers

Platform as a Service (PaaS)

Medium

Barrier created by industry giants although Innovation could surpass the barriers

Infrastructure as a Service (IaaS)

Low, because of high risk and high initial capital requirement

High, because of increase in resellers, third party applications and libraries - Regional/National players might emerge

Porter’s 5 Force Model

Bargaining power of buyers

Software as a Service (SaaS)

High

Community of users drive application features and low switching costs

Platform as a Service (PaaS)

Low

Issues such as vendor-lock-in because of no cloud interoperability standards and use of proprietary development languages; high switching costs

Infrastructure as a Service (IaaS)

High

Viewed as a commodity, and relies on volumes to improve utilization and profitabilitygh

Porter’s 5 Force Model

Power of suppliers

Software as a Service (SaaS)

High, with PaaS; Vendor-lock-in

Medium with IaaS; No cloud interoperability standards, thus switching is difficult, although IaaS provider needs to demonstrate assured quality level of service

Platform as a Service (PaaS)

Medium

No cloud interoperability standards, thus switching is difficult and sometimes costly, although IaaS provider needs to demonstrate the assured quality level of service in terms or uptime, reliability and conformance to Service Level Agreements (SLAs).

Infrastructure as a Service (IaaS)

Low

Largely undifferentiated offering

Porter’s 5 Force Model

Threat of substitute products

Software as a Service (SaaS)

Low

Platform as a Service (PaaS)

Low

No substitutes to develop and sell apps any other way than through application development platforms

Infrastructure as a Service (IaaS)

Moderate

Cloud Computing is still in growth stage

THANK YOU