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(article can be downloaded at http://ideas.repec.org/p/snv/dp2009/201061.html) Based on the promising developments in Cloud Computing technologies in recent years, commercial computing resource services
(e.g. Amazon EC2) or software-as-a-service offerings (e.g. Salesforce. com) came into existence. However, the relatively weak
business exploitation...
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... data for the value chain analysis was collected through market surveys and case studies available online at Cloud, Grid and Internet service providers, project Web sites, descriptions of tools for Cloud computing, application specifications, and business models of service providers. A data set comprises information about the product and/or service, price, business linkages between partners and suppliers, cross layer linkages, as well as a description of the value creation process. Using value chain analysis techniques of Porter [4] and Hergert & Morris [31], this data was processed as follows: • Determined the boundaries of the business segments to be analyzed. • Identified critical activities and assigned activities to the Porter value chain model. • Defined the product and value structure. • Identified linkages and inter-relationships and, therefore, the relative position within the structure model. • Determined the value of an activity. Based on this procedure, the linkage, the layers, and sub-layers were set for each service. A fraction of this list of services and products is given in annex 1, the complete is list is available on our Web site. Building on the foundations of Porter classical model, value networks, and “value grids”, the following Cloud value chain reference model was developed. The model breaks activities (services) down into three main virtual layers. Within those layers, services are organized as independent sub-layers. Each layer border represents a profit and knowledge margin. Linkages between layers or independent services can take horizontal, vertical, and diagonal paths. Value is accumulated by flow of money and knowledge through these linkages. Through this organization, service packages can be created in a flexible and cost effective way. Figure 1 shows our proposed Cloud value chain reference ...
Citations
... It consists of massive resources, and provides some mechanisms to provide, reimage, workload rebalance, de-provide, and monitor those resources. [1] Computing is a virtual pool of computing resources. It provides computing resources in the pool for users through internet. ...
The basic principles of cloud computing is to make the computing be assigned in a great number of distributed computers, rather than local computer or remoter server. The running of the enterprise’s data center is just like Internet. This makes the enterprise use the resource in the application that is needed, and access computer and storage system according to the requirement. It provides services that set clients free from worrying about data processing problems so that they can focus on their major businesses. Cloud computing is a set of Information Technology services that are provided to a customer over a network on a leased basis and with the ability to scale up or down their service requirements. In this article, characteristics of it will be discussed with several examples, in order to show that how cloud computing will make the business world simpler, more efficient, and more specialized, in addition we’ll describe types of cloud computing environments, cloud computing style, furthermore we discuss about different famous clouds include: IBM clouds, Google clouds and Amazon clouds and will tell applications, advantages and disadvantages of them. Cloud computing in education is an important issue in our world, so we explain about it and will clarify difficulties and its applications like: web-based learning, mobile video learning, observational learning and computer programming learning.
... Nonetheless, there are resource limitations and cost-related shortcomings (Goher et al. 2018). For instance, cloud computing services could still be over-provisioned or under-provisioned (Goiri et al. 2012), which is due to the volatility of demand for computing resources and anti-competitive externalities that exist in the market (Altmann and Kashef 2014;Mohammed et al. 2009). In order to allow cloud providers and cloud customers to deal with this situation, we present a comprehensive cost model comprising relevant cost factors and an economic model underlying the various cloud deployment models. ...
Ten different cloud deployment models (e.g. public clouds, private clouds, and federated clouds) can be selected by users, depending on their requirements for executing their applications. As each of these deployment models comes with certain costs and benefits, they need to be understood by users to ensure they make an optimal selection. In order to support this decision making process, a comprehensive cost model that comprises all relevant cost factors is needed. The aim of this chapter is to present such a comprehensive cost model comprising all relevant cost factors and an economic models underlying the various cloud deployment models. In particular, an architecture for managing federated clouds using an economic model is discussed in the outlook on future research.
... Nonetheless, there are resource limitations and cost-related shortcomings (Goher et al. 2018). For instance, cloud computing services could still be over-provisioned or under-provisioned (Goiri et al. 2012), which is due to the volatility of demand for computing resources and anti-competitive externalities that exist in the market (Altmann and Kashef 2014;Mohammed et al. 2009). In order to allow cloud providers and cloud customers to deal with this situation, we present a comprehensive cost model comprising relevant cost factors and an economic model underlying the various cloud deployment models. ...
The importance of demonstrating the value achieved from IT investments is long established in the Computer Science (CS) and Information Systems (IS) literature. However, emerging technologies such as the ever-changing complex area of cloud computing present new challenges and opportunities for demonstrating how IT investments lead to business value. Recent reviews of extant literature highlights the need for multi-disciplinary research. This research should explore and further develops the conceptualization of value in cloud computing research. In addition, there is a need for research which investigates how IT value manifests itself across the chain of service provision and in inter-organizational scenarios.
This open access book will review the state of the art from an IS, Computer Science and Accounting perspective, will introduce and discuss the main techniques for measuring business value for cloud computing in a variety of scenarios, and illustrate these with mini-case studies.
... Lacking a holistic ISP business model within the scope of this study means value structure of the ISP business in this scope is vague and this hinders the creation of new, innovative, and sustainable business models [87]. This is why proposing a holistic ISP business model prepares the ground for predicting and better understanding opportunities based on new Internet-based technologies and forms a foundation for designing business models for other ISPs in the industry. ...
... What is the business model of ISPs at telecom industry level like? Hence, the scientific contribution of this research is supposed to be as follows: [87]. In addition, describing such a model results in a better understanding of market requirements and making a compatibility between market needs and the value structure. ...
... In addition, describing such a model results in a better understanding of market requirements and making a compatibility between market needs and the value structure. • Such a model can be considered as a great help to ISP managers to identify the position of their own business in the ISP market and change their classical view toward the value chain [87]. It also facilitates better understanding of the components of this business and the market potentials, too [87]. ...
A business model can be perceived as a simple, yet focused, representation of the related activities of a company, which describes how to create the value of the company in terms of information, products and services. Given the significance of the Internet service infrastructure in new Internet-based business logic, notably the positive relationship between the growth of the Internet service infrastructure and GDP growth, this paper elaborates on the business model of the Internet service providers (ISPs). Accordingly, the ISPs’ business model, in the scope of connectivity service providers, based on the selected meta model (Hedman and Kalling’s ontology) at the industry level is analyzed. For validation and generalization assessment, the business components of two ISPs at the instance level and the business components of other service providers in the telecom industry (beyond the scope of this research) are compared, point by point, with the proposed business model components, respectively. The results of this study will raise the awareness of ISPs’ executives and new entrants of different aspects of this business. The proposed business model can be considered as a basic model in the area of designing new business models, especially in the area of new Internet-based technologies.
... For an infrastructure or service to be successful, it is necessary to evaluate its feasibility and sustainability (Baig et al. 2018;Hernández et al. 2015;Kim et al. 2015). Beyond technical aspects, it requires governance tools, ways to keep customers, and support for creating innovative business models and value chains (Pittl et al. 2017;Mohammed et al. 2009). For fulfilling these requirements, countless issues need to be solved: fair compensations of customers by a cloud provider who has vowed to pay the customer for service disruptions (Naldi et al. 2013), regulations in the context of clouds (Maillé and Tuffin 2014), decision models and metrics for evaluating investments in security, portability, interoperability, and models for supporting the adoption of cloud infrastructure (Novelli 2012;Haile and Altmann 2016). ...
... More specific to the cloud, Fehling et al. present in [54] the essential patterns for building cloud applications. Besides, there are also works proposing cloud business models, providing reference models for value chains in the Cloud [71]. In this sense, our proposal is compatible with previous methodologies, providing them with a componentbased approach and capabilities to reason with the models. ...
The proliferation of sensors over the last years has generated large amounts of raw data, forming data streams that need to be processed. In many cases, cloud resources are used for such processing, exploiting their flexibility, but these sensor streaming applications often need to support operational and control actions that have real-time and low-latency requirements that go beyond the cost effective and flexible solutions supported by existing cloud frameworks, such as Apache Kafka, Apache Spark Streaming, or Map-Reduce Streams. In this paper, we describe a model-driven and stepwise refinement methodological approach for streaming applications executed over clouds. The central role is assigned to a set of Petri Net models for specifying functional and non-functional requirements. They support model reuse, and a way to combine formal analysis, simulation, and approximate computation of minimal and maximal boundaries of non-functional requirements when the problem is either mathematically or computationally intractable. We show how our proposal can assist developers in their design and implementation decisions from a performance perspective. Our methodology allows to conduct performance analysis: The methodology is intended for all the engineering process stages, and we can (i) analyse how it can be mapped onto cloud resources, and (ii) obtain key performance indicators, including throughput or economic cost, so that developers are assisted in their development tasks and in their decision taking. In order to illustrate our approach, we make use of the pipelined wavefront array.
... Furthermore, we get into the cloud provider who owns multiple cloud data centres are from different geographical locations (Bany Mohammed, Altmann and Hwang, 2010). They operate on a common specification across different information centres with some deviation in the pricing structure. ...
An integrated cloud service model utilising both public and private cloud services to provide a holistic deployment of the enterprise applications is the need of the hour. Traditional existing applications getting modernised to meet the high business demands to serve end customers, by adapting technology enhancements towards big data and cloud to achieve the futuristic Service Level Agreements (SLA).Some efforts have been made to model with respect to cost and its impacts, yet the distinctive need is to get a holistic picture of the overall modernisation characteristics. In this paper, we propose a proactive cost optimisation model along with a proposed algorithm to solve some of the key issues towards service placement during enterprise modernisation. The proposed cost optimised algorithm is applied to different scenarios on multiple clouds with enterprise modernisation characteristics. Experimental results derived shown that the proposed work effectively optimises the service placement on multiple clouds.
... Lee and Leem investigated the value chain in ubiquitous computing[45]. Furthermore, a value chain reference model for cloud computing has been proposed by Bany et al.[46]. This model is based on Porter's value chain theory and an adaptation to the none-linearity value creation aspects in the cloud computing context. ...
Within a closed ecosystem, end-users cannot interoperate with other platforms or port their software and data easily without a cost for interface integration or data re-formatting. The customers of these closed software service platforms are lockedin. Potential customers, who are aware of this lock-in issue, are hesitant to adopt a closed software service platform, slowing down the wide deployment of the software service platform. This paper applies an economic perspective to investigate the value creation for providers and users at different levels of interoperability. For the analysis, a value creation model for software service platforms within a software service ecosystem has been developed. Simulations of the value creation model show that, even if investments in interoperability and portability are aimed at addressing user requirements, their impact also drives the providers’ profitability. Furthermore, emerging providers require investing more than market leading providers, as they have less power to set de facto standards. The simulation results also show that there is an optimal level of investments, with respect to profit and return on investments. Overall, from these results, platform providers cannot only obtain an understanding on how investments in interoperability and portability impact cost, enable cost-effective service integration, and create value, but also design new strategies for optimizing investments.
... Cloud computing is one of the emerging networking technology that has attracted attention from both industrial and research communities. In general cloud computing consist from a lot of parallel and distributed computing systems which compute, storage and provide recourses or services via the Ethernet, ATM, Fray Relay and other technologies [1][2][3]. In general case cloud computing offers both software and hardware components that can be virtualized and used "as a service" for small and large-scale data networks. ...
... Infrastructure and architecture solutions of cloud computing networks provided by different companies have a number of common characteristics [3]. The common architecture of cloud computing network is depicted on the Figure 1. ...
... The high performance is one advantages of the cloud computing what should be satisfactory for each delivered services [3,8,10]. Hence, performance evaluation for cloud providers and users is important. ...
... In three publications, the model creation is just a means to an end: Keller and König (2014) (2) Practical Use of the Model: The models can be used by providers, customers and scientists. Providers can strategically position themselves or their service offerings (Walterbusch et al., 2014), identify possible business opportunities , create new service provisioning scenarios (Mohammed et al., 2010), anticipate potential alliances (Mohammed et al., 2010), allocate themselves to a role or a role cluster (Pelzl et al., 2013) or identify options for reconfiguration (Pelzl et al., 2013). ...
... In three publications, the model creation is just a means to an end: Keller and König (2014) (2) Practical Use of the Model: The models can be used by providers, customers and scientists. Providers can strategically position themselves or their service offerings (Walterbusch et al., 2014), identify possible business opportunities , create new service provisioning scenarios (Mohammed et al., 2010), anticipate potential alliances (Mohammed et al., 2010), allocate themselves to a role or a role cluster (Pelzl et al., 2013) or identify options for reconfiguration (Pelzl et al., 2013). ...
... Especially new market entrants can get an understanding of potential markets, formulate their value model based on the market needs and fully utilize existing services (Mohammed et al., 2010). Customers are able to identify the different potential costs for using and customizing a cloud solution based on their business needs, to anticipate various service scenarios from a strategic point of view (Mohammed et al., 2010) and to generally understand the complexity of the cloud computing market (Walterbusch et al., 2014). ...
A business ecosystem has evolved in the field of cloud computing whereby new types of market actors have emerged breaking up the traditional value chain of IT service provision. In order to create a profound understanding of this ecosystem, several scholars tried to capture it in a model. However, these models differ considerably from each other. The goal of this paper, therefore, is to develop a revised and comprehensive cloud computing ecosystem model according to the design science paradigm. For this purpose, the recently published Passau Cloud Computing Ecosystem Model (PaCE Model) is developed significantly further by integrating the insights of an analysis of the existing cloud ecosystem models regarding ten criteria and by considering findings from the general cloud and business ecosystem literature. To ensure the integrity of the enhanced PaCE Model, the Internet is manually searched for companies occupying the roles of the model. As a result, the model comprises 26 roles and includes the basic service flows. Since the missing market transparency is regarded as one of the main reasons for the low cloud adoption, the intended contribution is to foster a better understanding of the cloud ecosystem and to provide a conceptual framework for further research.
