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Cloud Computing Analysis

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Sector Paper – Cloud Computing analysis
July 28, 2013

Sector Paper – Cloud Computing analysis
July 28, 2013

Table of Contents

Overview of Cloud Computing 2 I. Cloud Market Rivalry 3 II. Threats of New Entrants 7 III. Bargaining Power of Clients (and Customers) 8 IV. Threats of Substitutes 9 V. Bargaining Power of Suppliers 10 Works Cited 11

Overview of Cloud Computing

National Institute of Standards and Technology defines Cloud computing as the ability for users to have on-demand access to a shared pool of compute resources called the cloud infrastructure. The cloud infrastructure can be viewed as containing both a physical layer and an abstraction layer. The physical layer consists of the hardware resources that are necessary to support the cloud services being provided, and typically includes server, storage and network components. The abstraction layer consists of the software deployed across the physical layer, which manifests the essential cloud characteristics. Conceptually the abstraction layer sits above the physical layer (NIST, 2011). The graphic above from NIST defines the Essential Characters, Service Models, and Deployment Models for Cloud Computing. Using Michael Porter’s Five Forces Model (Schilling, p. 74-76), we can examine the challenges that impact Cloud Computing from 5 perspectives as detailed in the sections below. * Rivalry among existing competitors * Threats of New Entrants * Bargaining Power of Clients (and Customers) * Threats of Substitutes (or Switching Costs) * Bargaining Power of Suppliers
Source: Christensen, C. (1997)

I. Cloud Market Rivalry
The Cloud Sector remains a highly competitive. Amazon, IBM, Apple, Google remain leaders in the sector as other providers strive to gain a competitive advantage over their rivals. * Platform as a service (PaaS)

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