The document introduces cloud computing by discussing how technologies like search, media sharing, and social networking have made computing resources ridiculously cheap to access and store. It explains how cloud computing moves from a model where individuals owned computers to one where computing power and storage are accessed via the internet. The document outlines common cloud computing terms like SaaS and different business models used by cloud companies. It notes both opportunities and challenges that cloud computing presents for businesses.

1. Cloud Computing -A Gentle Introduction Joe Drumgoole Twitter: jdrumgoole Blog: http://joedrumgoole.com/blog

2. Nothing New Under the Sun 10-Jan-2011 A Gentle Introduction to Cloud Computing 2

3. What is new with the Cloud? Search Media Sharing Social Networking Global Distribution Ridiculously cheap storage and compute Utilisation of Cognitive Surplus 10-Jan-2011 A Gentle Introduction to Cloud Computing 3

4. The Old Distribution Method 10-Jan-2011 A Gentle Introduction to Cloud Computing 4

5. The Dell Business Model Swap all the 100 Watt Bulbs to 80 Watts What’s cheaper than owning a computer? Not owning a computer 10-Jan-2011 A Gentle Introduction to Cloud Computing 5

6. Computing in the 90’s 10-Jan-2011 A Gentle Introduction to Cloud Computing 6

7. Computing in Noughties 10-Jan-2011 A Gentle Introduction to Cloud Computing 7

8. 10-Jan-2011 A Gentle Introduction to Cloud Computing 8

9. Cloud Computing Terms 10-Jan-2011 A Gentle Introduction to Cloud Computing 9

10. SaaS Pay as you Go Capex to Opex No long term commitments No hardware No installation No integration (usually) 10-Jan-2011 A Gentle Introduction to Cloud Computing 10

11. Instead Browser Wars Plugin Wars Data extraction concerns Privacy and Security issues Uptime 10-Jan-2011 A Gentle Introduction to Cloud Computing 11

12. Business Models Pure Play Pay : Salesforce.com Freemium : Flickr, Evernote, Dial2Do Advertising : Gmail Hybrids of all the above 10-Jan-2011 A Gentle Introduction to Cloud Computing 12

13. Conversion Ratios 10,000,000 Page Views 1,000,000 Registrations 100,000 users 1000 paying customers Conversion ratios of 2-3% are average 10% is super stellar 10-Jan-2011 A Gentle Introduction to Cloud Computing 13

14. Important to Remember In advertising based business models you the user are the product The product you use (e.g. Facebook) is the packaging As an individual you have zero control 10-Jan-2011 A Gentle Introduction to Cloud Computing 14

15. What does This Mean? CAPEX -> OPEX Asset free businesses Low burn companies Old IT rules don’t apply Your customers are moving online Cost bases are dropping 10-Jan-2011 A Gentle Introduction to Cloud Computing 15

16. Direct Impacts Statutory requirements for accounts 7 years recording keeping Still a necessity for paper copies of everything What is your cost ratio compared to others? 10-Jan-2011 A Gentle Introduction to Cloud Computing 16

17. Specific Opportunities Online Email : Google Apps Document Sharing : Drop Box Contact Management : SugarCRM Project Management : Basecamp Management Accounts : FreeAgentCentral, AccountsIQ 10-Jan-2011 A Gentle Introduction to Cloud Computing 17

18. Summary Its so cheap to compute your teeth will hurt The desktop is dead SaaS + mobile = Future Microsoft Office + TAS Books may not be the only solution 10-Jan-2011 A Gentle Introduction to Cloud Computing 18