Global Analyst Insights by Rene Buest

Why Cloud Computing is a business driven concept

By on January 25, 2012 in Comment with 0 Comments

During conversations I always hear the opinion that cloud computing is a purely technological approach and it was just developed to help companies to operate more scalable, flexible, etc. Well, on the one hand it’s true. However, I am of the opinion that cloud computing is/ was primarily driven by the business and not by the technologies. But why is that?

Looking back on the development of the three current players (Google, Amazon and Salesforce) in the cloud computing market we can deduce many things, but mainly evident similarities, demonstrating that cloud computing is a business-driven approach.

As many might think cloud computing did not enter the stage suddenly. No, it has grown over time! Google and Amazon had never set the goal at the beginning: “Hey, now we’re doing cloud computing and offer services ‘on demand’ and on the basis of ‘pay as you go’ over the Internet”. That is exactly what many vendors do who jump on the current cloud computing train. No, the reasons of Google and Amazon are simple. In each case, it’s their core business, which lets them “forced” to develop and use cloud computing technologies.

Why Google needs Cloud Computing?

Considering the core business of Google, here is the search and indexing of the Internet in the foreground. The expansion of their infrastructure has finally makes it to develop more and more applications and services.

Why Amazon needs Cloud Computing?

At first Amazon’s core business is the webshop plus the downstream processes behind, like logistics, data warehouse etc. Through the steadily development of their infrastructure, apart from the Amazon Web Services, more resource-hungry applications can be included in the portfolio.

Why Salesforce needs Cloud Computing?

Well, Salesforce is a little more special. From the beginning Salesforce precisely aligned their business model to deliver software as a service as their core business.

Similarities!

Having a look at the similarities (challenges) all of the three are faced with to pursue their core business, it becomes clear why cloud computing primarily has been driven by the actual core business, thus by the Business.

  • High computational power
  • High performance
  • High availability
  • High reliability
  • High scalability

Conclusion!

Cloud computing is primarily a business driven concept, which is optimally supported by the combination of technological developments in recent years.

About the Author

About the Author: Rene Buest is Gartner Analyst covering Infrastructure Services & Digital Operations. Prior to that he was Director of Technology Research at Arago, Senior Analyst and Cloud Practice Lead at Crisp Research, Principal Analyst at New Age Disruption and member of the worldwide Gigaom Research Analyst Network. Rene is considered as top cloud computing analyst in Germany and one of the worldwide top analysts in this area. In addition, he is one of the world’s top cloud computing influencers and belongs to the top 100 cloud computing experts on Twitter and Google+. Since the mid-90s he is focused on the strategic use of information technology in businesses and the IT impact on our society as well as disruptive technologies. Rene Buest is the author of numerous professional technology articles. He regularly writes for well-known IT publications like Computerwoche, CIO Magazin, LANline as well as Silicon.de and is cited in German and international media – including New York Times, Forbes Magazin, Handelsblatt, Frankfurter Allgemeine Zeitung, Wirtschaftswoche, Computerwoche, CIO, Manager Magazin and Harvard Business Manager. Furthermore Rene Buest is speaker and participant of experts rounds. He is founder of CloudUser.de and writes about cloud computing, IT infrastructure, technologies, management and strategies. He holds a diploma in computer engineering from the Hochschule Bremen (Dipl.-Informatiker (FH)) as well as a M.Sc. in IT-Management and Information Systems from the FHDW Paderborn. .

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