Cloud 2010 Opening Session: How to do Business in the Cloud – the Service Provider Perspective

  • TYPE: Combined Session DATE: Wednesday, May 05, 2010 TIME: 10:30-11:30 LOCATION: Helios



Seasoned Security & Information Risk professional with 19 years experience of business development, consulting, pre-sales, project and product management in the IT industry. 10 year track record working in the Identity Management field with in-depth expertise of technologies including...

This talk reviews current cloud computing business models and presents proposals on how organisations can achieve sustainability by adopting appropriate models. Using the Jericho Forum’s "Cloud Cube Model" (CCM), we classify cloud computing business models into eight types:

  1. Service Provider and Service Orientation;
  2. Support and Services Contracts;
  3. In-House Private Clouds;
  4. All-In-One Enterprise Cloud;
  5. One-Stop Resources and Services;
  6. Government funding;
  7. Venture Capitals; and
  8. Entertainment and Social Networking.


The Hexagon Model is newly proposed based on Sun Tzu’s Art of War (STAW) and literature reviews in economics and finance. Six key elements are identified for sustainability and the sixth factor is rated based on case studies and peer reviews. Areas occupied in the Hexagon can represent strength and weakness of cloud business, and several cases are presented with rationale explained.

Apart from qualitative approach, the quantitative approach we use is the Capital Asset Pricing Model, which aims computing organisational sustainability and predicts how well an organisation can perform. We also use Modern Portfolio Theory (MPT), which models an asset’s return as a normally distributed random variable and define risk as the standard deviation of return. Other business models are reviewed and our proposal of using both quantitative and qualitative approaches provides more added values, which are explained in the talk. Some examples in finance and healthcare clouds are demonstrated.

Some experiments are completed in the domains of private and public clouds. Several examples in Monte Carlo and Black Scholes are used in modelling of assets, such as calculation of assets for the best to buy/to sell, risk analysis and so on. Black Scholes have the same objective but with different focus. Selected healthcare clouds are used to demonstrate cloud storage & initial phase in bioinformatics.

We hope adopting an appropriate cloud computing business model will help organisations investing in this technology to stand firm in the economic downturn.


David De Roure is a Professor of Computer Science in the School of Electronics and Computer Science at the University of Southampton, UK. A founding member of the School's Intelligence, Agents, Multimedia Group, he leads the e-Research activities and is a Director of the Pervasive Systems...

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