Cloud+Computing+II+-+Evaluating+Business+Opportunities

=Cloud Computing II - Evaluating Business Opportunities= Tuesday, November 17, 2009

**Topic overview:**
In today's class we will introduce a simple analytical framework for evaluating emerging information technologies. We will then apply the framework to explore business opportunities and risks that the emergence of the Cloud Computing model introduces for businesses. We will consider both non-technical businesses, that is companies who use information systems to support a non-technology business, as well as businesses that create new information technologies. Both types of businesses are likely to be heavily affected by the emergence of cloud computing but in strikingly different ways. Business Opportunities

By the end of today's class you should be able to:
 * Make elementary use of the provided analytic framework to evaluate emerging information technologies.
 * Be able to describe the key implications that the emergence of the cloud computing paradigm on a variety of different kinds of businesses.
 * Understand and explain the key benefits and costs associated with cloud computing for businesses that use information technologies, and businesses that produce information technologies.

**Preparation for class:** Prior to class you need to read the following two articles
 * [Monroe06] Robert Monroe, Emerging Information Technologies Analysis Framework, 2006.
 * [[file:EIT Fall '06 Analysis Model v1.0.pdf]]


 * [DW07] Abhijit Dubey and Dilip Wagle, Delivering Software as a Service, The McKinsey Quarterly, May 2007.
 * This article is freely available in two places. A PDF copy is available the 'Course Documents' section of Blackboard and it is also available for free downlaod on the web at The McKinsey Quarterly's website. Downloading from the web requires free registration:
 * []

Once you have completed the readings, You should select a major technology business with which you are familiar that has either completely built their business based on the cloud computing model (such as Google, Amazon.com, or SalesForce.com) or has had to adapt their business model significantly either as a result of the growth in popularity of the model (such as Microsoft or Apple). How have they adapted their strategies to either embrace or defend against the changes that the new approach introduces? Write down the company that you have selected, do a bit of research to figure out what they are doing relating to cloud computing, and come prepared to discuss in class what you have found.

Reference materials:
Slides:

**Student questions:** As usual, in preparation for today's class, you need to provide at least one thoughtful question raised by your reading of the material you have been asked to prepare for class today. These questions should be posted at least 4 hours prior to the beginning of lecture.

[Bob Monroe] The analytic framework provided seems to be a very rough guide for making business decisions. Why doesn't it have formulas, calculations, etc.? Are you recommending that we not do detailed financial and quantitative analyses and just use this framework instead? How does the analysis framework fit in with the more rigorous quantitative models we are learning in the rest of the business administration program?

[Mai Al-Naemi] The article 'Emerging Information Technologies Analysis Framework' states that people are aware of the problems caused by technology like privacy and theft nowadays, hence they arent really considered problems. What are some problems we face today caused by technology that we haven't discovered a solution for yet?

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[Zeyad Al-Mudhaf] Is there any promise of success for companies that, for some reason or another, decide to stick to the traditional model of developing and providing software and completely avoid adopting SaaS? What are the factors that cause and situations in which, the success of the business can continue even though it doesn't adopt emerging technologies?======

[Hadi Murtada] How does the company know when to buy the system online, specially that each year the system's price decreases and more technologies are introduced?

[Abdulla Ali Al-Kuwari] When evaluating the EIT using the primary questions and secondary questions in order to know if it is a good candidate for adoption, how can we compare the costs and benefits of the EIT after answering the questions? (in other words, if there is some value and some problems, how can we compare them)

[Yara Saeed] One of the advantages of using SaaS is that if a vendor is doing an unsatisfactory job, the system management/maintenance can be transfered to another vendor. If different business process systems are handled by different vendors does that create some sort of inconsistency in services?

[Hatem Salem] to what extent does one, the primary and secondary questions, two, usning the Technology effieciently, introduced by the article about EIT are these two, effective in solviong IT challenges faced by today's IT businesses? And if they are good enough shouldn't that make the development of technologies easier or that does really relate to the development stage?

[Alhanoof] What are the criteria that could be used to evaluate EIT or could help in assessing the framework analysis?

[Noora Al-Mannai] Examples of people trying to evaluate and/or adopt a new information technology investment decisions include: Director of MIS, CIO, VP, Marketing Manager, Venture Capitalist, and Software Engineer. Do we need all of them when taking the decision of what technology to adopt? Who is the most/least important? Which person should answer which primary/secondary question before evaluating EIT framework?

[Fatima Hilal] One of the primary questions that we need to answer before evaluating an emerging information technology (EIT) with the framework is "What problems is the technology likely to cause?" Thus, we need to find out what are the problems that might be caused, but how can we eliminate these problems from occurring? Later on, how can we solve these problems with the least costs?

[Benazir Anis]In order to evaluate an Emerging Information Technology, the analysis framework suggests addressing primary and secondary questions.Are these the only methods of evaluating an EIT or are there more?If so what are they?

[Hala Khashabi] The “Emerging Information Technologies Analysis Framework” article provides some questions managers should answer in order to evaluate EITs, shouldn’t the firm ask first whether the technology is suitable for the business or not rather than starting immediately with what the technology does and doesn’t do? The second article claims that “10 percent of the market for enterprise software will migrate to a pure software-as-a-service model by 2009”. As we are in 2009, is this statement correct?

[Hira Ahmed] How can we avoid bias when answering questions in the EIT analysis framework? How effective is it in making the best final decision for the company?

[Mohammed Al-Thani] In the analysis framework of the EIT, the primary questions are more technical and the secondary are more managerial. Who should define and analyze the primary and secondary questions? (e.g. IT department, Operations department, top management)

[Nada Al-Mahmeed] In “Emerging Information Technologies Analysis Framework” it is stated that in order to explain what does the technology do, we should be able to describe the technology “specifically”. However, what does specifically refer to? The detailed features associated with the technology or something else?

[Shuaa] in “Emerging Information Technologies Analysis Framework” it is stated that there are very few information technologies that have high value in isolation ? How would you determine if an IT is valuable in isolation or has other products that might increase its value?

[Maryam Al-Kuwari] in the "Emerging Information Technologies Analysis Framework" the author states that one of the secondary questions managers should answer is whether there is another cheaper substitute, is the fact that it is cheap imply that the substitute is of lower quality which would affect the system as a whole if considered?

[Marwan ElGhamrawy] Is EIT (Emerging Information Technology) required for business success, like what will be the base benefits of it?

[Ramsey Massouh] For the primary and secondary questions about the EIT, must they all be answered in order for the technology to be successful (or to be a promising candidate)? or must it just pass the criteria test?

[Rifki Bahri] Since the framework is used to provide short-simple answers and leading not to a detailed conclusions, where should decision makers go after applying the EIT framework? Are there other frameworks that may provide a better and accurate understanding of the technology?

[Brian Manalastas] What other quant analysis is necessary to evaluate the technologies once filtered through the EIT analysis framework?