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1. What technology services does Amazon provide? What are the business advantages to Amazon & to subscribers of these services? What are the disadvantages to each? What kinds of businesses are likely to benefit from these services? Answer:- In March 2006, The founder of Amazon.com Jeff Bezos made the strategic decision to capitalize on Amazons largely unused computing capacity by moving forward in the cloud utility computing market and adding two computing products to the Amazon Web Services (AWS): Simple Storage Service (S3) and Elastic Compute Cloud (EC2). Nowadays, S3 and EC2 are Amazons most well-known and central Amazon Web Services (AWS) Both S3 and EC2 provide business advantages and disadvantages to both Amazon and customers. By exploiting its large quantity of unused computing capacity, Amazon creates for itself an additional source of revenue. A major selling point for Amazon Web Services is its pay-as-you-go feature, which allows subscribers to take advantage of Amazons tremendous computing capacity with no contracts, no start-up fee, no minimum fee, and a low total cost of ownership (TCO). Although Amazon considers its pay-as-you-go model a competitive advantage, potential subscribers may be deterred from using a cloud computing service that does not offer service level agreements (SLAs), which guarantee the contracted delivery time of the service. Many businesses know how to, and definitely already make, benefit from S3 and EC2. Amazon initially targeted micro-businesses and web-startups, but is now a magnet for mid-sized businesses and potential big players in e-business, as well. AWS subscribers include Mile Meter, Inc., a startup selling car insurance by the mile; Webmail.us, which provides email management services for companies worldwide; Powerset, an up-and-coming search engine company; SmugMug Inc., an online photo-sharing startup; and Dropbox, Inc., a web-based file hosting service. 2. How do the concepts of capacity planning, scalability, and TCO apply to this case? apply these concepts both to amazon and to subscribers of its services. Answer:- Capacity planning is defined as the process of predicting when a computer hardware system becomes saturated to ensure that adequate computing resources are available for work of different priorities and that the firm has enough computing power for its current and future needs. Indeed, Amazon must plan its future needs to be capable of providing sufficient computing power for both AWS and Amazon retail services, a lack of which will result in the aforementioned rejection by subscribers. Related to capacity planning is scalability, which is defined as the ability of a computer, product, or system to expand to serve a large number of users without breaking down. Scalability relates to both Amazon and AWS subscribers. Amazon must be able to provide its customers with services that are scalable, as it claims to do on its website: Take advantage of our massive compute capacity and storage to build whatever kinds of applications your business demands, no matter how fast it grows or how big it gets
3. Search the internet for companies that supply utility computing. Select two or three such companies and compare them to Amazon. What services do these companies provide? What promises do they make about availability? What is their payment model? Who is there target client? If you were launching a web startup business, would you choose one of these companies over Amazon for web services? Why or why not? Would your answer change if you were working for a large company and had to make a recommendation to the CTO? Answer:- Today, there exist many other companies that supply utility computing. One such company is Florida-based DC Wirenet. Which specializes in providing end-to-end IT services, IT outsourcing, IT support, search engine optimization (SEO), internet marketing, website design and maintenance, database driven website, hosting exchange, and hosting remote applications on their servers. Like Amazon, DC Wirenet guarantees an expert and reliable infrastructure with less downtime, also promising better end-user productivity, reduced risks to mission-critical systems and information, flexible levels of systems control, and reduced demands on internal IT resources. While pricing for Amazon Web Services is very transparent and detailed, the payment model for DC Wirenet is not advertised on the website. DC Wirenets target client is smaller private corporations who are in geographical proximity to the companys main offices. However, larger companies may still want for more established companies such as Amazon. Another is Google's App Engine. If It is about launching a web startup business I will choose Amazon, because of its pay-as-you-go feature, which allows subscribers to take advantage of Amazons tremendous computing capacity with no start-up fee, no minimum fee, and a low total cost of ownership (TCO). 4. Think of an idea for a web based startup business explain how this business could utilize Amazons S3 and EC2 services. Answer:- Online marriage media could be a web based startup business and we can exploit Amazon Simple Storage Service (S3) and Elastic Compute Cloud (EC2) for all of our business file storage, backups, and as a content delivery network. References 1.http://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxpbmZvc3lzdG VtczIwMTAxfGd4OjZhMDg3MDQ1OTk0Yzc5ZjA 2.http://aws.amazon.com/s3/ 3.MIS Managing the digital firm -kenneth c. laudon -jane p. laudon 4. http://www.webopedia.com/TERM/A/Amazon_EC2.html
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