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Post on 12.05.10
by Dion Hinchcliffe with Mobile Cloud Providers Group, Seattle Wa. LLC
The mobile Internet has arrived
- it's "technology as a service," as data is increasingly transported, shared, consumed and created via the cloud.
Cloud computing, mostly as it related to the mobile Internet and smartphone explosion, is a very big platform shift for businesses.
Always before, enterprise use of data has been considered the leaser
for technology trends, spending and business opportunities.
Now - the rapid consumer acceptance of mobile apps is what drives demand for cloud services, cloud platforms
and cloud infrastructure, as the instant scalability enable speed to market and individual user adoption.
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By 2020 the International
Data Group estimates that one-third of all digital information will pass through--or live in--the cloud. Info
World says that cloud services will almost triple from approximately $48 billion in 2009 to $169 billion in 2013.
This means that clients (desktops,
laptops, smartphones and tablets) can become "thinner" by embedding less processing
capability; more and more processing, which previously took place on the hardware end, can be accomplished through a browser
or an app.
Dont' forget - it's very important to note that today's "thinner" client is not the
same as yesterday's, because modern devices require tremendous amounts of connectivity intelligence, spanning the wireless
networks, wifi access, Bluetooth capabilities, and more robust power management.
Consumer data--including Facebook interactions, FourSquare badges, and the operators' new enhanced
offerings--will be cloud services, and mobile is already expanding within those realms.
Last year 77 million Facebook members
were active mobile users; in February 2010 mobile Facebook users exceeded 100 million and, this
month, active mobile users exceeded 200 million. The cloud is a very big part of why mobile technology can provide so many
services to users today as opposed to 10 years ago.
The cloud is a low business method for companies, such as social networks or games, to develop, deliver and scale
without expensive upfront infrastructure investment.
One company set to profit
from the move to the cloud is Amazon. It's likely that today, Amazon Web Services may be powering your favorite app, its development
platform and its host.
Amazon
Web Services enables 6 to 8 of the top 10 Facebook apps, and is considered a market leader in
cloud services. Although it only accounts for 3% of Amazon's overall revenues, the "other" category of which Amazon
Web Services is a part is growing at 50% annually and is currently at a close to $1 billion run-rate.
For reference, Salesforce.com,
the cloud pioneer in customer relationship management, has a revenue run-rate of $1.33 billion and a market cap of $14.9 billion,
with a 30% revenue growth rate. Applying a less-than-scientific analogy on the market cap to revenue valuation to Amazon Web
Service revenue would say a $11.1 billion asset residing inside of Amazon's $76 billion market cap.
