Cloud computing and “Business of Software”

March 2, 2009

I am a firm believer that cloud computing has the potential to change business of software in more ways than one.

  1. At an architecture level, cloud computing changes the way we think about enterprise architecture. See an excellent presentation below by Stuart Charlton on this topic. Cloud Computing and the Next-Generation of Enterprise Architecture – Cloud Computing Expo 2008
  2. It also lowers the entry barriers for start up companies in various fields because now they no longer have to re-create the wheel of underlying infrastructure. This is a huge paradigm shift. Now it is within reach of start up companies to innovate even in the fields where large computing power or large storage of data is a necessity. Many bio-medical start ups are doing exactly this by taking advantage of huge computing power provided via clouds. This was not within small companies reach before and was the forte of companies like IBM!
  3. Entire new business models are now possible with clouds. As an example look at SlideShare. They have created an useful service around sharing presentations while completely utilizing AWS for their storage needs. This also is a significant shift since companies like Slideshare now can focus on their core strengths rather than worry about how to service their ever increasing customer base.
  4. Cloud computing will also change the tools and process landscape for software development. I have tried to capture some of it (many slides deleted due to confidentiality)  for the Application Lifecycle Management space, Cloud Application Development Lifecycle.

I am sure I have missed ways in which cloud computing will affect IT/Software industry in general. Please let me know about it via comments.

PS: As I finished this blog entry, I came across Cloud Computing UC Berkley Report. It talks about state and fate of cloud computing. It is definitely worth reading…