Apoorva Sharma
A computation, software, data access,
and storage services that do not require
end-user knowledge of the physical
location and configuration of the system
that delivers the services.
Cloud computing providers deliver
common business applications online
that are accessed from another Web
service or software like a web browser,
while the software and data are stored
on servers
Cloud computing (CC) is Internet-based computing, whereby
shared resources, software and information are provided to
computers and other devices on-demand, like electricity.
New and existing companies are attempting to break into the
CC industry every day due to the rapid growth.
The top companies in CC industry are: Microsoft, Google, IBM,
Amazon.com, and SalesForce.
CC is mostly dedicated to the corporate world.
The current canvas of cloud
computing industry is blue
ocean strategy.
Using new software and
products in the market
customers have better choices,
rather than having the same
products and services.
Headquartered in Redmond, Washington.
Develops, manufactures, licenses and supports wide
range of product and services in various division.
CEO Steve Ballmer since 2008.
• Unified software
to encourage
collaboration
across the globe
Vision
• Technology
• Innovation
• Customer
Loyalty
Business
Overview
“Technology has an
exponential path in front
of it, meaning it has the
ability to propel science,
medicine, business, social
issues and personal
interactions in ways that
are increasingly important
to society and our own
everyday lives.”
 -Cloud Computing, March
4, 2010
Internet
Applications
Office
Applications
Graphic
Design
Utilities
Mobile
Media
Value
Proposition
Value Chain
Structure
Competitive
Strategy
•Low Cost – High
Volume
•Marketing
•Blue Ocean
Strategy
•Customer Loyalty
•Discounts
Market
Segment
Revenue and
Margins
•Corporate World
•Sales

October 27, 2008 Microsoft launched Azure
Services Platform as an entry to cloud
computing market.
Type
Definition
Rank
Cloud Platform
Delivering a cloud
computing and/or solution
stack as a service
10th
Cloud Application
Delivering software as a
5th
service over the Internet,
eliminating the need to install
and run the application on the
customer's own computers
and simplifying maintenance
and support.
Cloud Foundation
Delivering cloud computing
7th
PEST
Factor
O/T
Impact
Political
Government
requiring to be
paid for extra
bandwidth.
T
4
Economic
Low budget for
companies
T
1
Rise is new
technology
experiments
O
1
Customers wanting
more help
T
4
Consumers
wanting unlimited
storage
O
2
Security
T/O
2/3
Failed products
T
3
Social
Technology
Government requiring to be paid
for extra bandwidth.
Government starts asking for
money to be paid to put
information on the cloud.
Companies will not use the cloud
for putting information since they
will need to pay for it.
Low budget for companies
Companies getting budget cuts.
They will be forced not to experiment
with the new products coming out in
the market, instead to keep using
what they already have.

Rise in new technology experiments
◦ Multi-National companies using new technology, such as cloud
computing.
 Will lead smaller companies to also look into start using the same type
of technology.
Customer’s wanting more
help with the products
they buy.
•Currently if a company buys the
cloud product, unless they are
willing to pay, they would need
to configure the product.
•Companies will not buy the
product if they are difficult to
configure.
Customer’s wanting
unlimited storage
•Customer’s/ companies have a
need for a lot of storage.
•Cloud Computing will be the
best product to try for them.
•The cloud computing might not be as secure as the companies want it
to be
•They will not buy the products
Security
•Companies are looking for a way to put their secured information.
•They will buy the products.
•Cloud computing products does not work properly
Failed
products
•Companies are unlikely to buy the products.
Factors
Importance (1 = Highest, 5 =
Lowest)
Political
4
Economic
2
Social
3
Technological
1
Factor
Cloud Computing Industry
# of competitors
Theoretically: Very High
Realistically: Very High
Quality differences among
competitors
Low
Customer loyalty
High
Costs of leaving market
Very High
Industry growth rate
Very High
Factor
# of suppliers
Uniqueness of service
Cost of switching
suppliers
Cloud Computing Industry
Low
Medium
High
Factor
Cloud Computing Industry
# of consumers
Medium
Size of each order
High
Differences between
competitors
Low
Price sensitivity
Medium
Factors
Cloud Computing
Time and cost of entry
High
Barriers to entry
Low
Technology protection
Very High
Specialist knowledge
High
Factors
Cloud Computing Industry
# of potential substitute products
Medium
Cost of change
Medium
Treat to New
Entrants
(Medium)
Bargaining
Power of
Suppliers
(High)
Competitive
Rivalry
(Medium)
Threat to
Substitute
Products
(Medium)
Bargaining
Power of
Customers
(Medium)
The current canvas of cloud
computing industry is blue
ocean.
Using new software and
products in the market
customers have better
choices, rather than having
the same products and
services.
Storage
Servers 9%
12%
App
Dev/Depoly
10%
Infrastructure
Software
20%
Application
49%
Low Cost
Competitive
Advantage
Differentiation
Yahoo
Amazon.com
Google
IBM
HP
Microsoft
Zoho
Rackspace
SalesForce
Broad
Target
Competitiv
e Scope
Narro
w
Target
Price
Low
Low
Quality
High
High
Yahoo
Amazon.com
Zoho
RackSpace
SalesForce
Google
Microsoft
IBM
HP
United States
Ireland
South Africa
Malaysia
India
South Korea
Taiwan
Hong Singapore
Kong
Company
Core Competencies
Weak, Moderate,
Strong
Microsoft
Innovation, R&D
Moderate
Google
Innovation, R&D
Strong
IBM
Innovation
Strong
SalesForce
Technology
Moderate
Amazon.com
Customer Service
Strong
Yahoo
Customer Service
Moderate
HP
Innovation, R&D
Weak
Zoho
Technology
Weak
RackSpace
Technology
Moderate
Company
Key Brands
Product Scope
Microsoft
Software
Technology,
Innovation
Google
Application
Technology,
Innovation
IBM
Software
Technology,
Innovation
SalesForce
Software
Technology
Amazon.com
Online Sales
Retail
Yahoo
Customer Use
Electronic mails
HP
Electronics
Technology
Zoho
Software
Technology
RackSpace
Software
Technology
Company
Target Market
High, Moderate, Low
Microsoft
Companies
High
Google
Young consumers
High
IBM
Companies
High
SalesForce
Companies
Moderate
Amazon.com
College consumers
High
Yahoo
Older consumers
Moderate
HP
Middle Aged
Consumers
Moderate
Zoho
Companies
Moderate
RackSpace
Companies
Moderate
Trend
Opportunity / Threat
Large enterprises are building their
own private clouds.
Threat
Cloud computing will shift the skills
needed by IT workers.
Opportunity
IT departments will shrink as users go
directly to the cloud for IT resources.
Opportunity
Concerns about information security
will abate as CIOs “get” the cloud
paradigm.
Threat/Opportunity
Professional services will be bundled
with commodity cloud services.
Opportunity
Cloud-computing resources will
become more customizable
Opportunity
Large enterprises will become parttime cloud-computing vendors.
Threat
Cloud computing will unleash
innovation.
Opportunity
The browser will be all the desktop
Opportunity
Company
Mission Statement
Vision
Microsoft
Help business and
people throughout the
world realize their
potential
Unified software to
encourage
collaboration across
the globe
Google
Organize the world‘s
information and make
it universally
accessible and useful.
Focus on user needs
Company
Mission Statement
Vision
IBM
Lead in the invention,
development and
manufacture.
Solutions for a small
planet
SalesForce
Enterprise
Collaboration
Low cost. Low risk.
Fast results
Company
Mission Statement
Vision
Amazon.com
To continue to offer
quality products and
services using the best
technology available
and at a reasonable
price.
Customer-centricity,
starting from the
customer and working
backwards, doing
innovation.
Yahoo!
To be the most
essential global
Internet service for
consumers and
businesses
To enable people to
find, use, share, and
expand all human
knowledge.
Company
Mission Statement
Vision
HP
To provide products,
services and solutions
of the highest quality
and deliver more value
to our customers that
earns their respect and
loyalty.
Customer Loyalty
Zoho
Centralized public
repository that allow
users to upload,
publish & share
documents,
presentations, PDF and
spreadsheets.
To enable people to
find, use, share, and
expand all knowledge.
RackSpace
Centralized
information.
One place for
everything that is
needed.
Narrow
Scope
Broad
Low Cost
Microsoft
Advantage
Product Uniqueness
Cloud Computing Division
Weaknesses
• Feasibility
• Customer
Service
• User Friendly
Strengths
•
•
•
•
•
Technological Skills
Leading Products
Customer
Loyalty/Relationshi
ps
Production Quality
Scale
Threats
•
•
•
•
•
Economic
Recession
Technology
Security
Failed Products
Customer Service
demands
Government
Regulations
Opportunities
• Rise in
experiments
• Customer needs
• 2) Focus on
improving the
new products.
• 4) Providing
customer service
to the existing
products
• 1) Focus most
on new products
especially in CC
division
Existing
Products
New
Products
Existing
Customers
New
Customers
• 3) Marketing to
new customers
Microsoft
Microsoft (4)
PEST
• states that with
the growing Cloud
Computing
Industry faces a
lot of threats.
Porter’s Five
Forces
• The industry still
needs to market
more to
consumers
• New companies
are entering the
industry rapidly.
Microsoft
• Already using Blue
Ocean Strategy
•Google, Amazon.con, IBM and
SalesForce are primary Competition
Competitors
Global
•India and Singapore are leading in
Cloud Computing at this time with
South Korea and Taiwan following.
•Accessibility to products (ex: cost)
Success
•Leadership and awareness (ex: globally
renowned)
•Innovation (ex: Cloud Computing)
•Collaboration
•Improvement Needed
Improvement
Needed
•Providing Customer Service
•User Friendly Applications
•Feasibility of Applications
Improve
• Providing customer service
• User friendly applications/programs
Expand
• Cloud Computing Division
Awareness
• Competitors (ex: Google)