Case Wo Sending Computers into the Cloud Since the modern electronic computer wa
ID: 3861364 • Letter: C
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Case Wo Sending Computers into the Cloud Since the modern electronic computer was invented in the the trend has been toward reducing the size of th computer while increasing its capability. The logical end of remove the physical computer a ogether, this trend is hile that isn't likely to happen in business, companies hav found ways to make their central computers disappear Central computers still exist, of course, but if you look round business offices, follow the cables from a desktop wireless router through walls and down halls, you may not ind a central computer. What you'll find instead in more and organizations are signals going "into the cloud." That more saying refers to cloud computing which provides computin Internet that are services and database access over accessible from anywhere in the world rather than from a specific computer in a specific location. Deutsche Bank (DB), the German financial services firm made a decision to send its computers into the cloud. As Alistair McLaurin of its Global Technology Engineering grou put it, the bank "wanted to create something radically different, to "challenge assumptions around what centrall provided IT services could be and how much they must cost. DB created a system in which computing is done by virtual machines WMs): software managed slices" of real computers that behave in every respect like a full computer but that hare the hardware of one real computer with many other VMs. A virtual machine is an extension of the familiar concept of running more than one program at a time. In a VM, you run more than one operating system at a time, with each completely isolated from the others. The result is substantial savings in hardware cost and everything that go with it, such as space and electricity. By putting the computers that host their virtual machines in the cloud, DB freed themselves from the constraints of being at a particular physical location. DB can thus optimize the use of these virtual computers across the entire company Another advantage of the virtual approach is that someone who needs a new computer doesn't have to purchase one. Instead, they can use a virtual computer inside a real computer that the company already has: such a VM is easier to set up than a new system. In fact, a user who is a permanent employee, who wants a new Virtual Machine for their own use only, can do it by visiting one Web site, lecting an operating system IWindows, Solaris, or Linux and clicking three buttons. The new vM will be ready and available for them within an hour The open Data Center Alliance recently chose DB as the grand prize winner of its Conquering the Cloud Challenge The specific basis for the award was the way DBs doudExplanation / Answer
a. Strategic Advantage
Location: As the virtual machine can be made available anywhere, it provides location advantage to Deutsche Bank. The setup is independent of the location.
Speed: Speed of the setup is fast. The time generally needed to procure hardware/software/setup is cut down. As this is only the configuration of what is needed on the cloud. There is no need of physically getting the machines and technical engineers making on-site visit to set it up.
Space: Lot of space taken by server rooms/ data backup devices, racks etc is saved. There is lot of additional other requirements like maintaining certain air-condition, alternate power line is not needed.
Staff: The on-site technical staff for infrastructure maintenance is reduced a lot.
Focus on core business: The organization can have focus on the core-business better.
b. Greatest Benefit
Cost is the biggest factor that helped Deutsche Bank to move to the cloud. Slices of the real computer can be configured as various virtual machines over cloud. This saves cost in the hardware. The company does not need to upgrade the hardware, replace the parts, run the maintenance for each hardware etc. The staff needed to run the infrastructure is reduced as well. Since there is a location advantage, the office sites can be chosen with flexibility and need not be where the servers and other hardware is present.
c. Other 2 industries & strategic advantage
-Transport: Transport industry can gain competitive advantage, save the infrastructure expenses and pass the savings to the customer by reducing the prices.
-Healthcare: Health Care industry can open the centres at multiple locations as it is no longer needed to have the full hardware and systems at the new office locations and the set up costs and the time needed to set up are reduced.
-Insurance: Insurance industry can also be considered for moving to the cloud as the insurance agents can be given Windows Vista, Windows 7, and other OS without actually need to set it up for them. A virtual machine with all the required applications can be made available to them when they join and can be revoked easily as well when they are no longer working for the company without the need to actually returning the systems physically. The virtual machine subscription can be terminated for them.
d. Porter's factors
Competitive Rivalry within the industry:
As the rivals in the industry are still working with the old approach of owning the hardware and software, Deutsche Bank has a clear advantage over competitors. The shareholders, customers, vendors, employees look at this as a step taken by Deutsche Bank to stay ahead of competition. The amount saved here goes into company's profits and all the stakeholders benefit.
Bargaining power of customers: The saving done by moving into cloud can be passed to the customers. Customers see this as a positive step for Deutsche Bank and would prefer to buy from Deutsche Bank.
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