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.
This work was completed with the support of ITPP center — MOKE — Korea
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
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.
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.
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.
M. E. Porter. 1998. On Competition. A Harvard Business Review Book. Boston.
M. E. Porter. 1985. Competitive Advantage. Creating and Sustaining Superior Performance. P33. Free Press. New York.
Wikipedia. 2007. Website. Accessed in (November, 24, 2007). http://www.wikipedia.org.
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.
V. Allee. 2003. The Future of Knowledge: Increasing Prosperity through Value Networks. Butterworth-Heinemann.
F. K. Pil and M. Holweg. 2006. Evolving from value chain to value grid. In: MIT Sloan Management Review, 47(4):72–80.
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.
Gridpedia, 2008, Website, accessed 21/12/2008. http://www.gridipedia.eu/index. php?id=690.
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).
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.
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.
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.
A. Grimshaw, A. Ferrari, F. Knabe and M. Humphrey. 1999. Legion: An operating system for wide-area computing. IEEE Computer, 32((5)).
Enabling Grid for E-sciencE (EGEE) 2008, Website, accessed 21/12/2008 www. eu-egee.org.
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.
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.
Amazon. 2007. Web Services. Accessed 21/9/2007. http://www.amazon.com/gp/ browse.html?node=201590011.
Sun Grid. 2007. Website., Accessed 21/9/2007. http://www.sun.com/service/sungrid.
D. Harris. 2007. My Day at SC07. In Grid today. Vol. 6, No. 46. (November 19, 2007).
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.
La Grid. 2007. Website. Accessed 25/10/2007. http://latinamericangrid.org.
D-Grid. 2007. Website. Accessed 25/10/2007.www.d-grid.de.
rosetta@home. 2007. Website. Accessed. 27/10/2007. http://boinc.bakerlab.org/rosetta.
M. Hergert and D. Morris 1989. Accounting data for value chain analysis. Strategic Management Journal, Vol. 10, p. 175.
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.
Gemlca. 2008. Website. Accessed. 1/15/2008. http://www.cpc.wmin.ac.uk/cpcsite/ index.php/Gemlca.
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.
J. Spohrer, L. C. Anderson, N. J. Pass, T. Ager and D. Gruhl. 2008. Service Science. J Grid Computing(6). PP. 313–324.
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.
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.
J. Altmann. 2000. A Reference Model of Internet Service Provider Businesses. ICTEC2000, 3rd International Conference on Telecommunication and Electronic Commerce, Dallas, Texas, USA.
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.
J. Altmann, D. Neumann and T. Fahringer. 2008. Grid Economics and Business Models. LNCS, Springer-Verlag, Berlin, Heidelberg, Germany.
Xen, 2009. Web site. Accessed. 5/15/2009. http://www.xen.org.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Birkhäuser Verlag Basel/Switzerland
About this chapter
Cite this chapter
Mohammed, A.B., Altmann, J., Hwang, J. (2009). Cloud Computing Value Chains: Understanding Businesses and Value Creation in the Cloud. In: Neumann, D., Baker, M., Altmann, J., Rana, O. (eds) Economic Models and Algorithms for Distributed Systems. Autonomic Systems. Birkhäuser, Basel. https://doi.org/10.1007/978-3-7643-8899-7_11
Download citation
DOI: https://doi.org/10.1007/978-3-7643-8899-7_11
Publisher Name: Birkhäuser, Basel
Print ISBN: 978-3-7643-8896-6
Online ISBN: 978-3-7643-8899-7
eBook Packages: Computer ScienceComputer Science (R0)