Advertisement

Cloud Computing Value Chains: Understanding Businesses and Value Creation in the Cloud

Chapter
Part of the Autonomic Systems book series (ASYS)

Abstract

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, participation, and adoption of other Cloud Computing services remain the main challenges. The vague value structures seem to be hindering business adoption and the creation of sustainable business models around its technology. Using an extensive analyze of existing Cloud business models, Cloud services, stakeholder relations, market configurations and value structures, this Chapter develops a reference model for value chains in the Cloud. Although this model is theoretically based on porter’s value chain theory, the proposed Cloud value chain model is upgraded to fit the diversity of business service scenarios in the Cloud computing markets. Using this model, different service scenarios are explained. Our findings suggest new services, business opportunities, and policy practices for realizing more adoption and value creation paths in the Cloud.

Mathematics Subject Classification (2000)

Primary 91A40 68M14 68T99 Secondary 91A10 

Keywords

Ontologies semantic concepts semantic knowledge structures semantic enhancement ontology matching service level agreements negotiation SLA-Management-System 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. [1]
    Next Generation Grids Expert Group. Future for European Grids: GRIDs and Service Oriented Knowledge Utilities Third Report. (January 2006). ftp://ftp.cordis. europa.eu/pub/ist/docs/grids/ngg3_eg_final.pdf.Google Scholar
  2. [2]
    European Commission. 2006. From Grids to Service-Oriented Knowledge Utilities A critical infrastructure for business and the citizen in the knowledge society. SOKU brochure. Office for Official Publications of the European Communities. Luxembourg. ftp://ftp.cordis.europa.eu/pub/ist/docs/grids/soku-brochure_en.pdf.Google Scholar
  3. [3]
    European Commission. 2003. Grids Challenges and opportunities for business & industry. European Commission Information Society Directorate-General. Final Report of the European Study Contract No. 30-CE-065970/00-56. ftp://ftp.cordis. europa.eu/pub/ist/docs/grids/ist_grids_brochure_oct_2003.pdf.Google Scholar
  4. [4]
    M. E. Porter. 1998. On Competition. A Harvard Business Review Book. Boston.Google Scholar
  5. [5]
    M. E. Porter. 1985. Competitive Advantage. Creating and Sustaining Superior Performance. P33. Free Press. New York.Google Scholar
  6. [6]
    Wikipedia. 2007. Website. Accessed in (November, 24, 2007). http://www.wikipedia.org.Google Scholar
  7. [7]
    R. Breite and H. Vanharanta. 2002. Value Chain Management in the Internet Environment. In: Twelfth International Working Seminar on Production Economics. Igls/Innsbruck, Austria, Volume 2. (February 18-22, 2002) http://www2.ipe.liu.se/ rwg/igls/igls2002/Paper044.pdf.Google Scholar
  8. [8]
    V. Allee. 2003. The Future of Knowledge: Increasing Prosperity through Value Networks. Butterworth-Heinemann.Google Scholar
  9. [9]
    F. K. Pil and M. Holweg. 2006. Evolving from value chain to value grid. In: MIT Sloan Management Review, 47(4):72–80.Google Scholar
  10. [10]
    K. Stanoevska-Slabeva, C. F. Talamanca, G. A. Thanos and C. Zsigri. 2007. Development of a Generic Value Chain for the Grid Industry. In: Grid Economics and Business Models. Volume 4685/2007, Pages 44–57. Springer Berlin, Heidelberg.Google Scholar
  11. [11]
    Gridpedia, 2008, Website, accessed 21/12/2008. http://www.gridipedia.eu/index. php?id=690.Google Scholar
  12. [12]
    S. Forge and C. Blackmann. 2006. Commercial Exploitation of Grid Technologies and Services — Drivers and barriers, Business Models and Impacts of Using Free and Open Source Licensing Schemas. Final Report of the European. Study Contract No. 30-CE-065970 /00-56. (November 2006).Google Scholar
  13. [13]
    H. J. Lee and C. S. Leem. 2005. A study on value chain in a ubiquitous computing environment. In: Computational Science and Its Applications ICCSA 2005. Volume 3483/2005. pp. 113–121. Springer Berlin, Heidelberg.CrossRefGoogle Scholar
  14. [14]
    J. Altmann, M. Ion and A. Bany Mohammed. 2007. Taxonomy of Grid Business Models”. In: Grid Economics and Business Models. Volume 4685/2007, Pages 29–43. Springer Berlin, Heidelberg.Google Scholar
  15. [16]
    I. Foster and C. Kesselman, 1999. Globus: A Toolkit-Based Grid Architecture. in The Grid, Blueprint for a Future Computing Infrastructure”, I. Foster, 196 and C. Kesselman, Editors, Morgan Kaufmann, San Francisco, pp. 259–278.Google Scholar
  16. [17]
    A. Grimshaw, A. Ferrari, F. Knabe and M. Humphrey. 1999. Legion: An operating system for wide-area computing. IEEE Computer, 32((5)).Google Scholar
  17. [18]
    Enabling Grid for E-sciencE (EGEE) 2008, Website, accessed 21/12/2008 www. eu-egee.org.Google Scholar
  18. [20]
    D. W. Erwin and D. F. Snelling. 2001. UNICORE: A Grid Computing Environment” in R. Sakellariou et al. (Eds.): Euro-Par 2001, LNCS 2150, pp. 825–834.Google Scholar
  19. [21]
    J. Altmann and D. J. Veit. 2007. Grid Economics and Business Models. LNCS 4685, ISBN 0302-9743. Springer-Verlag, Berlin, Germany. http://it.i-u.de/schools/ altmann/gecon.Google Scholar
  20. [22]
    Amazon. 2007. Web Services. Accessed 21/9/2007. http://www.amazon.com/gp/ browse.html?node=201590011.Google Scholar
  21. [23]
    Sun Grid. 2007. Website., Accessed 21/9/2007. http://www.sun.com/service/sungrid.Google Scholar
  22. [24]
    D. Harris. 2007. My Day at SC07. In Grid today. Vol. 6, No. 46. (November 19, 2007).Google Scholar
  23. [25]
    S. Pena. 2007. Outsourcing of Grid Computing. A Project Report, Department of Computer Science, Louisiana State University. (May 23, 2007). http://www.cct.lsu. edu/~gallen/Students/Pena_2007.pdf.Google Scholar
  24. [26]
    La Grid. 2007. Website. Accessed 25/10/2007. http://latinamericangrid.org.Google Scholar
  25. [27]
    D-Grid. 2007. Website. Accessed 25/10/2007.www.d-grid.de.Google Scholar
  26. [30]
    rosetta@home. 2007. Website. Accessed. 27/10/2007. http://boinc.bakerlab.org/rosetta.Google Scholar
  27. [31]
    M. Hergert and D. Morris 1989. Accounting data for value chain analysis. Strategic Management Journal, Vol. 10, p. 175.CrossRefGoogle Scholar
  28. [32]
    I. Foster, H. Kishimoto, A. Savva, D. Berry, A. Djaoui, A. Grimshaw, B. Horn, F. Maciel, F. Siebenlist, R. Subramaniam, J. Treadwell and J. V. Reich. 2005. The Open Grid Services Architecture, Version 1.0, Open Grid Services Architecture WG, Global Grid Forum.Google Scholar
  29. [33]
    Gemlca. 2008. Website. Accessed. 1/15/2008. http://www.cpc.wmin.ac.uk/cpcsite/ index.php/Gemlca.Google Scholar
  30. [34]
    E. Seidel, G. Allen, A. Merzky and J. Nabrzyski. 2002. GridLabA Grid application toolkit and testbed, Future Generation Computer Systems 18 (8), pp. 1143–1153.CrossRefzbMATHGoogle Scholar
  31. [35]
    J. Spohrer, L. C. Anderson, N. J. Pass, T. Ager and D. Gruhl. 2008. Service Science. J Grid Computing(6). PP. 313–324.CrossRefGoogle Scholar
  32. [36]
    M. Risch and J. Altmann. 2008. Cost Analysis of Current Grids and its Implications for Future Grid Markets. GECON 2008, Workshop on Grid Economics and Business Models, Springer LNCS, Las Palmas, Spain.Google Scholar
  33. [37]
    J. Altmann, C. Courcoubetis, G. D. Stamoulis, M. Dramitinos, T. Rayna, M. Risch and C. Bannink. 2008. GridEcon — A Market Place for Computing Resources. GECON 2008, Workshop on Grid Economics and Business Models, Springer LNCS, Las Palmas, Spain.Google Scholar
  34. [38]
    J. Altmann. 2000. A Reference Model of Internet Service Provider Businesses. ICTEC2000, 3rd International Conference on Telecommunication and Electronic Commerce, Dallas, Texas, USA.Google Scholar
  35. [39]
    J. Altmann and I. Constantiou. 2004. Towards a Profitable ISP Business in a Competitive Environment. book chapter titled for the book Social and Economic Transformation in the Digital Era. IDEA Group Publishing, USA, 2004.Google Scholar
  36. [40]
    J. Altmann, D. Neumann and T. Fahringer. 2008. Grid Economics and Business Models. LNCS, Springer-Verlag, Berlin, Heidelberg, Germany.CrossRefGoogle Scholar
  37. [41]
    Xen, 2009. Web site. Accessed. 5/15/2009. http://www.xen.org.Google Scholar

Copyright information

© Birkhäuser Verlag Basel/Switzerland 2009

Authors and Affiliations

  1. 1.Technology Management, Economics and Policy Program Department of Industrial and Management Engineering College of EngineeringSeoul National UniversitySeoulSouth-Korea

Personalised recommendations