Click here to close now.

Welcome!

GovIT Authors: Kevin Jackson, Carmen Gonzalez, Elizabeth White, Liz McMillan, Plutora Blog

Related Topics: Cloud Expo, Virtualization

Cloud Expo: Article

Why Do Investors Care About Cloud Computing?

Cloud computing helps IT cut infrastructure costs while adding new features and services

Cloud computing seems to be the buzzword in IT these days as companies are looking for the next big thing in computing. The IT folks at the leading companies are working hard to roll out these “clouds.” This emerging technology is gaining attention from major research institutions including Carnegie Mellon University. Let's not forget the likes of Google, IBM, and Microsoft who are amongst a large group of corporations investing time and money to mature this unique idea.

Cloud computing is an idea that has been around for quite a while. It is the concept of spreading computing processes over several resources through a network. Servers and computers are not always utilized and tend to be inactive. The typical data center houses hundreds of servers where many will sit idle as neighboring servers take the brunt of the workload. The likes of Google, Microsoft, IBM and HP utilize cloud computing in their operations.

IT professionals claim that cloud computing has already become prevalent with the rise of virtualization. Several IT companies have adopted cloud computing with the advent of online applications. A great example is Google Apps, a free office applications suite very similar to Microsoft office. This type of application is refereed to as SaaS (Software as a Service) and has been touted by the likes of Information Week. Here users can create and manipulate various documents in real time using the resources of Google’s cloud. Cloud computing is providing people with the capability to access powerful computing resources from devices like cell phones, laptops, and smart phones. Cloud computing should revolutionize data processing and mobile computing even further. This is just an example of the power of clouds, but where can it take businesses and how can investors reap it’s benefits?

The Investor Connection

Investors should keep an eye on clouds not only because companies can start expanding their service offerings over the Internet, but also because clouds can help reduce costs. Cloud computing helps IT cut infrastructure costs while adding new features and services to grow core businesses. Clouds can help grow margins as costs are cut back but service offerings are expanded. Clouds are being used for office applications, application development, and also complex tasks like risk calculations. Often times, corporations will have technology sitting idle in a building, using up resources, clouds now can utilize the power of these machines and put it to use. This will help businesses cut technology spending (hardware wise) and invest in software to efficiently distribute the workload across networks to harness the previously wasted computing power.

So let us recap, why do investors care about clouds:

  • Cuts infrastructure costs, which can lead to margin expansion
  • A part of the green initiative in IT
  • Unlock computing power for complex situations

Who Is Investing in Cloud Computing?

Although cloud computing has been around in a very crude form before, companies are stepping up to actively develop high end cloud networks to offer services to customers. There are several large IT firms who are taking part in this revolution including Google, Microsoft, IBM, Oracle, HP, Salesforce.com, Amazon and Yahoo. Out of this elite group, Google and IBM hands down are positioned best to profit from the growth of cloud computing.

According to Bloomberg, IBM reported R&D costs at $1.6 million for the most recent quarter. I think it is safe to say that a substantial amount of the costs were devoted to further cloud related technology. Several computing processes rely on virtualization and resource sharing. In order to solidify clouds as a reliable force in data centers, IBM must develop the hardware and core software properly. Unveiling the Blue Cloud was a big step for the company as a it provides Web 2.0 services to corporations allowing networks to function like an Internet.

Google, another leader in the cloud computing space, is a direct customer of IBM’s hardware and software. Using IBM’s offerings, Google is strengthening its backend with investment in cloud technology. GoogleApps, is a great example of SaaS where the company has opened up it’s cloud to developers to author applications based on it’s infrastructure and even allows end users basic applications like spreadsheets, presentations, and word processing. CEO Eric Schmidt believes clouds are a core value to his company’s business and according to Information Week the company has spent over $2.0 billion on four data centers. Paired with IBM, Google seems to be the best software and service provider of clouds in the future.

It is important to stay on top of the trends in computing although they can often times be hard to understand. Google and IBM prove to be leaders in the software, services, and hardware aspects of this revolutionary idea. The global slowdown could affect these companies as they rely heavily on ad revenue (Google) and IBM who also relies heavily on international exposure. Just take my two cents and consider the developments in the field as the market continues to find a bottom and the bulls prepare to regain control next year.


[This appeared originally here and is republished in full by the kind permission of the author,, who retains copyright.]

More Stories By Santosh Sankar

Santosh Sankar is currently a junior at Penn State's Smeal College of Business where he is majoring in Finance. He has held leadership positions with the Nittany Lion Fund and currently is an analyst in the IT Sector. He just finished an internship in the financial services sector.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Software Development, Product Management and Product Marketing, applied across Wireless, Unified Communic...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.