CHAPTER 2 The Business of Cloud Computing

In this chapter, we evaluate the business impact of Cloud Computing.

We start by outlining the IT industry's transformation process, which historically took smaller steps—first, virtualization and second, moving to Cloud. As we will see, this process has taken place in a dialectic spiral, influenced by conflicting developments. The centrifugal forces were moving computing out of enterprise—“Shadow IT” and Virtual Private Cloud. Ultimately, the development has synthesized into bringing computing back into the transformed enterprise IT, by means of Private Cloud.

Next, we move beyond enterprise and consider the telecommunications business, which has been undergoing a similar process—known as Network Functions Virtualization (NFV), which is now developing its own Private Cloud (a process in which all the authors have been squarely involved).

The Cloud transformation, of course, affects other business sectors, but the purpose of this book—and the ever-growing size of the manuscript—suggests that we draw the line at this point. It is true though that just as mathematical equations applicable to one physical field (e.g., mechanics) can equally well be applied in other fields (e.g., electromagnetic fields), so do universal business formulae apply to various businesses. The impact of Cloud will be seen and felt in many other industries!

2.1 IT Industry Transformation through Virtualization and Cloud

In the last decade the IT industry has ...

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