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Will Service Providers Dominate? A Business Outlook of Cloud EcoSystem

April 12th, 2010 No comments

When talking about cloud computing, people normally refer it as services provided by service providers over the Internet. These services are normally, at least in theory, elastic and with no limits on resource usage.

To differentiate the levels of services, the cloud computing is categorized into three different types of services: IaaS (Infrastructure As A Service), PaaS(Platform As A Service), and SaaS(Software As A Service).

Why is it layered as such? Simple. These three layers correspond to the traditional computing stack: machine, OS/Middleware platform, application. In light of this mapping, shouldn’t we call SaaS as AaaS?  I think that’s a right change technically. But which service providers would like to be called AaaS?

When more people and more companies use cloud computing as services, we will see a rapid growth of service provider sector. In my previous blog, I made an analog between the cloud services and office rental business, and predict the growth pattern of cloud computing would be similar to the office rental. Size matters when it comes to the scale of economy. The bigger the enterprises, the more likely own their offices and their cloud datacenters.