Lesson #3, Assignment #2 - Read the 'Business...

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Read the 'Business Problem-Solving Case' on pages 152-154 of your text, entitled "Amazon's New Store: Utility Computing" and address the case questions in an essay of 500-600 total words: 1. What technology services does Amazon provide? What are the business advantages to Amazon and to subscribers of these services? What are the disadvantages to each? What kinds of businesses are likely to benefit from these services? Amazon provides on-demand computing, also known as utility computing. Similar to other utility providers like electric, water, and natural gas, Amazon provides computing capacity to businesses that want to pay only for what they use. Amazon can generate extra revenue from other businesses by offering its excess capacity to those that need it. Like most companies, Amazon used only a small portion of it total computing capacity at any one time. Its infrastructure is considered by many to be among the most robust in the world. Subscribers to the Simple Storage Service (S3) can use only what they need without having to purchase their own hardware and software. That reduces the total cost of ownership for small and medium-size businesses. The system is scalable and reliable for both Amazon and subscribers. The Elastic Compute Cloud (EC2) service enables businesses to utilize Amazon’s servers for computing tasks without having the overhead costs. Risks associated with incorporating the technology are minimal for businesses—Amazon takes most of the risks. Companies may want to go with more established names in computing; Amazon is not known as a technology company—its reputation is more as a retailer. It’s combating this perception by not requiring service contracts. However, its competitors like IBM, HP, and Sun Microsystems may follow Amazon’s lead and offer utility computing without requiring service-level agreements. Some companies are wary of using a supplier that doesn’t offer SLAs which guarantee the
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This note was uploaded on 04/29/2011 for the course INFORMATIO MIS taught by Professor Daniel during the Spring '11 term at Antelope Valley College.

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Lesson #3, Assignment #2 - Read the 'Business...

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