Cloud Computing - Morgan Stanley Locator

Content is from Morgan Stanley Smith Barney and it is provided as a courtesy by,
Corethia V. E. Oates, Financial Advisor, July 5, 2011
Corethia V. E. Oates, Financial Advisor
Morgan Stanley Smith Barney
Mack Centre IV, So 61 Paramus Rd
Paramus, New Jersey 07652
Tel: (201) 226-5920
What is Cloud Computing?
The National Institute of Standards and Technology (NSIT) defines cloud computing as: “A model for
enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g.,
networks, servers, storage, applications, and services) that can be rapidly provisioned and released with
minimal management effort or service provider interaction.”
Morgan Stanley research suggest adding two dimensions to the definition. First, server level – what is the
range of computing resources being made available, or what is the completeness of the solution being
offered; and second, the deployment model, including 1) private clouds, which are operated for a specific
organization but may reside either within their own data centers or be hosted by a third party (managed
hosting), and 2) public clouds, where the given services are generally available to the public and hosted
externally from the end-customer.
The service level of cloud computing can be broken down into 3 components 1) Infrastructure as a Service
(IaaS), 2) Platform as a Service (PaaS) and 3) Software as a Service (SaaS). IaaS can be thought of as pools
of like compute power and servers. PaaS are on demand development platforms on which new applications
can be build on. SaaS delivers complete functional applications as a service over the internet.
Why Cloud Computing?
The Morgan Stanley Alphawise survey of more than 300 IT decision-makers indicated that public cloud
workloads may increase at a 50% Compound Annual Growth Rate (CAGR) in the next three years, which is
about twice as fast as the market currently anticipates and are expected to hit approximately $160 billion by
2020 with the reduction in hardware cost being one of the main drivers.
The percentage using the public cloud is expected to rise from 28% to 51% in three years, while the portion
of their workload running in the cloud likely will more than double, from 10% to 22%. Improvement in
economies of scale (supply side) and increase in demand indicates that growth is sustainable.
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