1. What business benefits do cloud computing services provide?What problems do they solve? 2.What are the disadvantages of cloud computing? 3.How do the concepts of capacity planning,scalability,and TCO apply to this case?Apply these concepts both to Amazon and to subscribers of its services. 4.What kinds of businesses are most likely to benefit from using cloud computing?Why? For each question, try to write your point first, then rationale of your point, examples you can provide, and re-stress point.

INTERACTIVE SESSION: ORGANIZATIONS Cloud Computing Cloud computing is taking off. The biggest play ers in the cloud computing include A mazon Web Services division (AWS). Microsoft. sp and Google. These companies have streamli cloud computing and made it an affordable sensible option for companies from Internet startups to established FedEx. Cloud infrastructure spending worldwide is expected to grow at 24 nually and exceed S32 billion in 2015 Fuuture 3 minutes after it happens. By AWS, Netco place include Sports can scale 100 servers in under 10 support streaming for 500,000 viewers. Until recently, banks have been rel reluctant to use able and ranging from tiny public cloud services due to security and tory concerns, but shrinking profits are encourag ing them to take a second look. In the companics like ing in 2015 some banks are using private clouds for their sensi percent an- tive financial transactions. National Australia Bank (NAB), with over $793 billion in assets in 2015 an internal private cloud based on IBM's infra- structure on demand. The private cloud hosts the bank's main production environment, including a I5 according to For example, AWs WS provides with flexible computing well as data management nies subseribing compa- ng power and data storage a new Oracle banking system, and will support short- campaigns. NAB pays only for what it uses so that it The equipment is all hosted in NAB's dat nd other services that messaging, payment, t can be used togcther or term computing-intense projects such as marketing Siness requires. Anyone with idually as the bus us res. Anyone with campaigns an Internet connection and a little bit of money can harness the same computing systems that Amazon itself uses to run its retail business. If cus- tomers provide the amount of server space, band- width, storage, and any other services they require, doesn't have to make large IT capital expendit which is unusual for on Although low overhead and infrastructure computing man agement costs make publie cloud locate those resources. especially attractive to startups, the fin efits of cloud computing for large and mids organizations are less apparent. Cliff Olson, direc- Amazon's sales pitch is that you pay for exactly what you use instead of monthly or annual fees. This appeals to many businesses because it tor of infrastructure sys ont, California-based packaging com- allows Amazon to handle all of the mainte- Inc., a Frem nance and upkeep o ucture or more employees nd more time on higher-value example, using AWS helped Merrifield Garden Center reduce costs, improve the stability and security of its applications and data, and elim- inate the burden of managing IT infrastructure hardware so it can focus on new customer-facing monthly service fee for 10,000 will probably be more expensive than having the company maint usines s own IT infrastructure and staff. Companies also worry about unexpected "runaway costs" from using a pay-per-use model Integrating cloud services with existing IT infra- structures, errors, mismanagement, or unusually initiatives to grow the busines. high volumes of Web traffic will run up the bill for Startup companies and smaller companies are finding that they no longer need to build their cloud service users. own data center. With cloud infrastructures like Gartner Inc. technology consultants advises clients contemplating public cloud services to take technical capability that was formerly available to into account the num only much larger busine Socialcam provides a popular mobile so application currently installed on over 20 million data will require. Additional costs incl iPhone and Android smartphones. The Socialcam that need to be paid for on a recurring basis, the application makes it easy to take a video of any size, rate of change for the data, and how much new data post it online, and share it with friends. Socialcam the business is expected to generate. A very large ber of machines an organiza tion will run; the number of hours per day or week they'll run; and the amount of storage their on's readily available, they have access to sses. San Francisco-based cial video company may find it cheaper to own and man iva that ha the re ug lic clouds become more efficient and secure couldn up with demand. By moving to the AWS Cloud, Socialcam can quickly add or remo meet demand. Netco Sports produces the Canal+ sta apa start using more cloud resources. A major barrier to widespread cloud a concern about cloud reliability and app that enables viewers to replay any move from any camera angle, on any device, within