Looks at cloud computing's transformational role in business. Covering cloud computing from what the business leader needs to know, this book describes how IT can ramp up revenue initiatives, positively impact business operations and costs, and how this allows business leaders to shed worry about technology so they can focus on their business.

Preface xiii Acknowledgments xvii Chapter 1 The Evolution and Future of Corporate Business Structures 1 Example of a New Corporate Organization Structure 3 Model of a Responsive Organization 5 A Cybernetic Economy 7 Cybernetics is about Control and Communication 9 Profit Potential of Self-Adjusting Feedback Loops 11 Viable Systems Model: A Framework for Business Agility 14 A Cloud-Based Model for Business Organizations 19 Notes 22 Chapter 2 The New Economics of Business 23 Moving to a Variable Cost Operating Model 24 Information Technology Finally Becomes a Utility 27 Variable Cost IT Operations Enable Business Agility 30 A Combination of Technologies Creates Cloud Computing 34 Implications of the Transition to Cloud Computing 38 Notes 41 Chapter 3 Key Technologies Used in Cloud Computing 43 Cloud Computing Defined 44 Software-as-a-Service 47 Server Virtualization 49 Service-Oriented Architecture 52 Open Source Software 54 Web Development and Mashups 58 Blending It All Together 60 Notes 61 Chapter 4 Data Security and Service Reliability 63 Will Your Cloud Service Provider Be Here Next Year? 63 What to Look for in a Good Service Provider 65 Elements of Good Data Security Policy 66 Cyber Threats and Perimeter Security in Cloud Computing 69 Encryption: The Next Frontier of Data Security 72 Contracts, Service-Level Agreements, and Guarantees 73 Negotiating Service and Pricing 77 Performance Penalties and Restitution Clauses 79 Notes 80 Chapter 5 Moving to the Cloud: When and Where 83 A Business Strategy Based on Agility 84 Using the Cloud for Business Advantage 87 Business Applications with the Greatest Potential 89 Risk Considerations with the Cloud 91 Cloud Cost Considerations 94 Case Study: Selling ‘‘Designer Chocolates’’ 96 Notes 99 Chapter 6 The Transition from Managing Technology to Managing Business Processes 101 The Fixed Cost of Maintaining Large Data Centers is Being Challenged 102 Public, Private, and Hybrid Clouds 103 Issues to Consider with Private Clouds 107 The Cloud is a Platform for Managing Business Processes 109 Automate Routine Processes and Focus People on Handling Exceptions 113 Four Technologies that Enable Responsive Business Processes 115 Notes 117 Chapter 7 The New Role of Information Technology 119 Is Traditional IT Irrelevant? 119 A Tumultuous Ride for the Chief Information Officer 121 The End of IT as We Know It 122 Changes in IT and Business Unit Staffing 123 Evolution of the Traditional Corporate IT Department 124 Agile IT Professionals Using Cloud Technology will be Embedded in Business Operating Units 125 Cloud Computing Separates Data Center Operations from System Development 127 Do We Need Enterprise Technology Architects, or Business Architects? 128 Companies are Investing in New Business Process Design 129 A Renewed Focus on Using Technology for Profit and Competitive Advantage 132 Notes 135 Chapter 8 Five Profit Enablers Driving Business to the Cloud 137 Harvard Medical School 137 Golden Gate University 140 Silicon Valley Education Foundation 143 Beachbody.com 147 Five Profit Enablers Driving Business to the Cloud . . . and Away from Corporate Data Centers 148 Notes 152 Chapter 9 The Business Impact of Cloud Computing 153 New Economic Engines for Growth 153 Time to Get Agile and Reinvent Traditional Business Operations 155 Get Ready, Get Set, Go: Success in a Real-Time Economy 157 Interconnected, Adaptable, and Specialized 159 Collaboration is Now More Profitable than Control 163 Necessity Makes Radical the New Normal 165 The Recovering Complexaholic 169 Notes 170 Chapter 10 Global Implications of the Cloud 171 Real-Time Global Collaboration 171 Serious Games 173 Cloud-Based Collaboration Enables a New Way of Working: The Dynamics of Swarming 176 Real-Time Visibility Could Make Us a Whole Lot Smarter 180 New Realities and New Opportunities 183 Notes 188 About the Authors 191 Index 193

Whether you like it or not, information technology is now mission-critical to every step your business takes. Unlike a few years ago when we left technology to the geeks, computing now gushes from the invisible woodwork and is covering the global psyche with a sea of expectations. Consumers, business-to-business customers—even your own employees—expect your products and services to cater to a technology-spoiled society. In business, only those who adapt to this ubiquitous, always-on technology will survive. Cloud computing has emerged as a pivotal driver in this equation. In Business in the Cloud, authors Michael Hugos and Derek Hulitzky draw on their experience in business and technology to illustrate how cloud computing can transform your organization while they clearly define the many financial and efficiency benefits of this new computing model. They show how it can be quickly rolled out, scaled up to handle increased volume if business takes off, or easily scaled back to cut costs if business changes. It allows companies to replace capital expenses with operating expenses, and enables companies to directly align operating expenses with revenue to protect cash flow and operating profits. A critical lynchpin to any organization operating in high change, unpredictable environments, cloud computing ultimately allows companies to focus their technology energies and investments on what matters most. By moving some applications and services to the cloud, it allows businesses to concentrate on devising even newer ways to find customers and profits. Loaded with case studies and insights from industry thought leaders and practitioners, Business in the Cloud explores: The new role of information technologyA renewed focus on using technology for profit and competitive advantageUsing the cloud for business advantageA cloud-based model for business organizationsImplications of the transition to cloud computingKey technologies used in cloud computingWhat to look for in a good service providerCyber threats and perimeter security in cloud computingPublic, private, and hybrid cloudsFive profit enablers driving business to the cloudNew economic engines for growthReal-time global collaborationNew realities and new opportunities As a business leader, do you know what cloud computing is? Do you feel compelled to understand it? You should. With constantly changing technologies to choose from, cloud computing is the bridge across a sea of change where every company now weaves technology into their communications, products, and processes. Experts agree that cloud computing is the largest revolution in decades in how people and companies will consume and use technology. And every business leader—not just the CIO—needs to understand it. Designed for business leaders to absorb the often-vague concept of cloud computing, Business in the Cloud delivers a critical foundation to not only understand it, but also put it to work.