Cloud Computing… the next big thing

By: ispeculatornew
Date posted: 02.27.2009 (4:00 am) | Write a Comment  (5 Comments)

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Technology is a wonderful thing of course in that it improves productivity and one of the leading changes is the arrival of cloud computing. Nice name isn’t it? Actually cloud computing is quite a simple concept in that it only means internet based software. So instead of opening an excel spreadsheet, you connect to the internet and open a program from your internet browser. The most obvious example is the difference between Microsoft Office and Google documents. On one hand you have Microsoft that has a group of programs namely Excel, word, Powerpoint, etc. But cloud computing is probably something you already use. When is the last time you downloaded Google Maps on your computer? Never of course as you can use it from your browser.

Here are the main aspects i see in such traditional software:

-Usually Purchased physically (cd, etc)
-One time purchase
-New program versions are an incentive to buy a new cd
-Bugs must be repaired through patches, downloads, etc.
-Backups necessary

Compare that to Cloud programs:

-Usually would be paid monthly or annually
-Generally no upgrades necessary
-No support required as any fixes or batches will be made for the user
-Accessible from anywhere that has internet access (increasingly anywhere)

You can see how from the user perspective, there are many advantages in cloud computing because there is less support necessary and no upfront payments. The major advantage of course is that in such an offering, there is almost no limits to the flexibility that can be offered. A small company could purchase only the parts of a software that it will really use, could change its number of licences daily or modify its requirements. And generally, in cloud computing, you can be charged for what you really use, not so much for what you think you will be using a few months in advance when you negotiate with your software provider.

With all of that said, the real question is how to profit from this trend and to me right now it is not clear at all. We are in the opening minutes of this game. Google might be the obvious leader but Microsoft is also pushing hard to catch up and obviously has a lot of advatanges from its dominating existing software. And let’s not focus only on the Microsoft suite as there are countless different software types in specialised fields. To give an example, in the Finance software field, Bloomberg is heads and shoulders above anyone else. But who says a web based company could not provide a comparable service that could be offered at a lesser cost than the 3,000$/month generally charged for a Bloomberg licence.

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  1. Pingback by Interesting Reads - 28th Feb | OneMint — February 28, 2009 @ 10:52 am

    […] topic of interest this week – Cloud Computing. The Intelligent Speculator has a good read about Cloud Computing, which is where I think the IT Industry is […]

  2. Comment by OneDay — March 2, 2009 @ 1:39 pm

    Interesting topic.

    Can YouTube be another example of Cloud Computing? Not a few years ago, everybody was laughing at YouTube. And now that it’s popular and widely used, how can they make money out of this?

  3. Comment by IS — March 3, 2009 @ 5:55 am

    Yes, wasn’t too sure at first, but indeed, Youtube gives a way to do promotion without going through traditional offline media’s..

  4. Comment by IS — March 3, 2009 @ 5:55 am

    and as for how to make money, I’ll write a post about this shortly, thanks for the idea!

  5. […] months as various companies have been putting workforce to compete. We had ourselves wrote about cloud computing as `the next big thing”. Of course, one of the major players in this arena is Google. The threat is serious enough for […]

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