cloud computing and startups
DESCRIPTION
What does cloud computing mean for startups and small businesses?TRANSCRIPT
![Page 1: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/1.jpg)
What’s the big deal about
cloud computing?
Vishy Venugopalan · Longworth Venture Partners · @midtownninja
© Dan Reynolds
![Page 2: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/2.jpg)
About me
Analyst at Longworth Venture Partners
Prior LivesPrior Lives
• Infrastructure software analyst at The 451 Group
• Software engineer, Morgan Stanley
![Page 3: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/3.jpg)
Everything old is new again…
![Page 4: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/4.jpg)
… or is it?
![Page 5: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/5.jpg)
Cloud computing buzz
Job postings mentioning “EC2”4500%4500%4500%4500% in 18 months
Amazon.com vs AWS network bandwidth over time
![Page 6: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/6.jpg)
So what is cloud computing?
![Page 7: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/7.jpg)
And why the buzz?
Photo creditPhoto creditPhoto creditPhoto credit: Gerard Casey, Rob Graham, Paul Loebig
Source: UC Davis networking documentation from 1998
![Page 8: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/8.jpg)
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable
computing resources (e.g., networks, servers, storage, applications, and services) that can be
rapidly provisioned and releasedrapidly provisioned and released with
minimal management effort or service provider
interaction.
-- NIST Cloud Computing Project
![Page 9: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/9.jpg)
A (very) brief taxonomy
• Software as a Service
– $21bn by 2012 (20% CAGR)
• Platform as a Service
– $9bn by 2012 (160% CAGR)– $9bn by 2012 (160% CAGR)
• Infrastructure as a Service
– $4bn by 2012 (60% CAGR)
SourcesSourcesSourcesSources: AMR, Gartner, IDC, William Blair & Co.
![Page 10: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/10.jpg)
But is the market real?© teri-hatcher.com
![Page 11: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/11.jpg)
Strong on-ramp for existing applications
The market is real and spectacular
New kinds of applications
60
70
Projected cloud computingspend
SourceSourceSourceSource: IBM, Enterprise Cloud Summit 2009
0
10
20
30
40
50
2008 2009 2010 2011 2012
$$ $$bnbn bnbn
spend
Smaller Enterprises Larger Enterprises Cloud = IT’s Cambrian Explosion--Irving Wladawsky Berger
Credit: Credit: Credit: Credit: UC Paleontology Museum + Nat’l Center for Science Education
![Page 12: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/12.jpg)
This is how startups see the cloud
© DisneyCopyright holder unknown
This is how large enterprises see the cloud
© Disney
![Page 13: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/13.jpg)
Killer apps for the cloud (so far…)
• Web applications
• Batch jobs
– Scientific computing
– Rich media processing– Rich media processing
• Test+dev and one-off projects
• Getting out of the business of IT
Credit: Geek and Poke
![Page 14: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/14.jpg)
So why should startupsSo why should startupsbe excited?
![Page 15: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/15.jpg)
Cloud as new business enabler
• Low user friction
• Internet standard abstractions
• Easy client access
• Potential cost savings (?)• Potential cost savings (?)
![Page 16: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/16.jpg)
What’s so cool this time?
Economies of scale
+ Low user friction+ Low user friction
+ Ease of integration
Opening up the SMB IT opportunity?
![Page 17: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/17.jpg)
What’s so cool this time?
Openness & network effects
Giant market opportunity
No single winner
![Page 18: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/18.jpg)
Summary
• Cloud computing is a tectonic shift and it’s real
• There are many issues yet to be worked out
• The cloud enables new apps and new business modelsmodels
• The cloud’s inherent openness encourages innovation
• The cloud’s unique characteristics might open up the SMB market
![Page 19: Cloud Computing and Startups](https://reader034.vdocument.in/reader034/viewer/2022051514/5495b277ac7959412e8b4e66/html5/thumbnails/19.jpg)
Resources
• NIST Cloud Computing Project
• McKinsey and Berkeley reports on cloud computing
• Intuit Partner Platform
• Everyone who’s here!• Everyone who’s here!