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Cloudonomics: The Business Value of Cloud Computing + Website Hardcover – 2 Oct 2012
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"In his new book, Joe Weinman explores many of the areas being impacted by the cloud computing phenomenon, offering compelling value propositions. He spells out, extremely thoroughly, the business cases and cost justifications that go behind cloud computing efforts. He also provides 28 business areas where cloud does and doesn′t make business and financial sense." (Forbes.com, September 2012)
From the Inside Flap
It has created vast wealth for companies that seemed to spring up overnight, and it has brushed aside corporate icons, even entire industries, that once seemed unassailable. It has helped topple brutal dictatorships and has brought IT from the backroom into the boardroom, making it the centerpiece of some of the most farsighted and successful corporate strategies of the new millennium. It is the cloud, and it has forever changed the way business is done.
But what is the cloud, really? How does it work and how is it being deployed by some of today′s most successful companies? More importantly, how can you harness its awesome power to help you wage and win the never–ending battle for profits and market share?
Find the answer to these questions and much more in Cloudonomics. Written by Joe Weinman, one of the world′s most influential cloud thought leaders, this book is a gold mine of ideas, insights, and inspiration for leaders of established companies and for aspiring entrepreneurs who dream of being the force behind the next Amazon, Google, Facebook, or Twitter.
Using fascinating and instructive case studies to illustrate his points, Weinman drills down past the hype and hysteria, the myths and misconceptions, to uncover fundamental principles underlying how the cloud works, how it′s used, and how it will evolve in a business context. Among other priceless takeaways, you′ll discover:
- Where the conventional wisdom errs, and how to keep your IT and strategy on course
- How core characteristics of the cloud such as on–demand resources, usage–based charging, and geographic dispersion translate into business value: revenue growth, cost and risk reduction, and customer experience enhancement
- Why the cloud isn′t just plumbing, but can become a cornerstone of your strategy, even in non–IT intensive businesses
- How to leverage new cloud business models
- How behavioral economics humans′ "predictable irrationality" impacts cloud adoption
- How cloud technology and ecosystems are likely to evolve over the next decade
With a dynamic companion website, this book offers a critical, in–depth review of the cloud and its business uses now and in the near future, and an inspiring exploration of the business paradigm shift it has engendered. Cloudonomics is "must" reading for CIOs, CEOs, CFOs, strategists, IT managers and practitioners, students and academics, and all forward–thinking corporate leaders and entrepreneurs.See all Product description
Top customer reviews
If you are looking to better your understanding and application of cloud technologies or make a business case for an investment or business change, this is surely a must-read. Likewise for those selling or buying cloud solutions, Cloudonomics provides data and examples which will prove invaluable time and time again in a chapter format which makes jumping around or dipping into straightforward.
Most helpful customer reviews on Amazon.com
One of the most interesting areas in the conceptual discussion of the cloud is the economic impacts it can bring. The conversation is so much broader than just cost savings; there is a deep and complex series of discrete topics to look at relating to both costs and ROI relating to cloud. One of the CloudU chapters looks specifically at the topic of the economics of cloud. This chapter was influenced heavily by the undisputed leader in the field, Joe Weinman. Not only did Weinman coin the general term used to describe the topic-area, "Cloudonomics," but he also recently published the definitive guide to the topic "Cloudonomics: The Business Value of Cloud Computing."
Weinman is an intellectual who brings a scholarly approach to the work - in the books 350-plus pages, he runs through a huge amount of data, case studies, economic analogues and theoretical concepts that all back up his assertions. Weinman does an excellent job of capturing all the different subject areas remotely related to Cloudonomics - he goes from a clarification of what cloud is and how it comes about to deployment strategies, scaling factors, demand forecasting, performance aspects alongside the culture impacts and aspects of a move to the cloud. It really is the definitive tome - a reference guide that, despite being focused on an area of rapid and massive change, will be the go-to publication for years to come.
One of the really compelling aspects is the number of case studies and analogies from unrelated industries that Weinman uses to illustrate the concepts he espouses. He does so without presuppositions - Weinman himself is a cloud believer and part of the tight-knit Clouderati group, but that doesn't color his writing, rather the determinations he comes to are worked through from actuality as opposed to some dogmatic "cloud is the answer to all problems" mindset.
The book is a useful publication for a vast variety of people. Technical folks will like its thorough analysis; anyone in the C-suite will enjoy its robust business-logic; and the vendor side will find lots of useful content that they can use to justify one or another of their products or services. It is also useful to an entire new generation of technology and business people who will be expected to work with and on the cloud - my 12-year-old son is (strange as it may sound) interested in cloud computing and he's slowly working through the book as the picture shows. If a 350-page manifesto full of deep economic theories can hold the attention of a 12-year-old, that is a sure indication that Weinman has done an excellent job creating a compelling and eminently useful book.
The majority of the book is focused on how cloud computing should be approached by organizations from an economic and strategic perspective. Weinman points out that while cloud is on the radar for most, only 7% consider it a critical area. He spends the whole second chapter just talking about whether the cloud matters and can be a competitive advantage. In a later chapter (#7), Weinman addresses a when you should - and shouldn't - use the cloud. This chapter, like all of them, tackle the cloud from a business perspective. This is not a technical "how to" guide, but rather, it's a detailed walkthrough of the considerations, costs, benefits and pitfalls of the cloud. Weinman spends significant time analyzing usage variability and how to approach capacity planning with cost in mind. He goes into great depth demonstrating (mathematically) the cost of insufficient capacity, excess capacity, and how to maximize utilization. This is some heady stuff that is still very relatable and understandable.
Throughout the book, Weinman relies on a wide variety of case studies and analogies to help bolster his point. For instance, in Chapter 21 he says:
"One key benefit of PaaS is inherent in the value of components and platforms. We might call this the peanut butter sandwich principle: It's easier to make a peanut butter sandwich if you don't have to grow and grind your own peanuts, grow your own wheat, and bake your own bread. Leveraging proven, tested, components that others have created can be faster than building them from scratch."
Just a few pages later, Weinman explains how Starbucks made its fortune as a service provider but saw that others wanted a different delivery model. So, they started packaging their product and selling it in stores. Similarly, you see many cloud computing vendors chasing "private" or "on-premises" options that offer an alternate delivery mechanism than the traditional hosted cloud service. To be sure, this is not a "cloud is awesome; use it for everything or you're a dolt" sort of book. It's a very practical analysis of the cloud domain that tries to prove where and how cloud computing should fit in your IT portfolio. Whether you are a cloud skeptic or convert, there will be something here that makes you think.
Overall, I was really impressed with the quality, content and delivery of the book's message. If you're a CEO, CFO, CIO, architect or anyone involved in re-thinking how your business delivers IT services, this is an exceptionally good book to read.
The bottom line, with the exception of taking a little too long to get to "what cloud is" for the layman, this is an extremely well written, easy to read (even with the detail) book on the tremendous impact, change, and value that cloud oriented thinking can bring to the modern organization.