The Amazon Cloud Computing Department - Research Paper Example

? Full Paper Amazon The amazon cloud computing department tends to be a shining star for any organization and helps to generategood profit as described by the renowned analyst Morgan Stanley. Conversely, the estimation conducted for the increased profit margins does not show any radiant signs but it does not mean that the evolution related to the Amazon’s cloud business from sheer infrastructure-as-a-service into higher-level (and higher-margin) services. A recent research conducted for a Monday morning issue, by the analyst Scott Devitt, Andrew Rudd and Nishant Verma. These analyst come to a perplexed conclusion related to the investors banking on Amazon for the short-term returns. According to the report “After analyzing Amazon.com cost structure in detail and by segment, we conclude that there are far more variable costs than investors believe, leading to an overly optimistic timeline for margin expansion”. The Amazon may be able to exploit the service opportunity provided by the Amazon Web Services (HORNE, 2011). In the year 2011, the Amazon Web Services (AWS) was responsible for the profit gain of approximately $1.19 billion as estimated in a report. In October, same year the business was estimated as a billion-dollar run rate and out of which around $108 million or 9% was mentioned as a pure profit for Amazon Web Services. However the company was able to maintain its profit gaining history constantly by lowering the cost spent on cloud services. This is acknowledged because the company utilizes a cost-plus pricing model. In addition, the cost of delivering the services adds up to 10% premium that continues to fall as, Amazon leverages its economies of scale to purchase and operate more gear and bandwidth at less prices. Though, the margin related to profit remains flat as mentioned in a report. Conversely, the Amazon Web Services (AWS) compromises on a particular portion of Amazon’s overall technology expense in order to drive slowly, predictable profit from it is a good thing. The analysts estimate that the non-AWS technology expenditures is approximately 4 percent of the total sales “representing the largest opportunity for operating margin expansion in the near-term.” The cost lowering technique leads the company towards great percentage of profit. Conversely, the report submitted by the Morgan Stanley does not represent the possibility for the Amazon Web Service (AWS) to actually start rising on a margin because the company is expanding its services beyond pure infrastructure and managed services (HORNE, 2011). The database services NoSQL DynamoDB for instance; it provides a service for the Amazon that helps the company to add value or cost outside the delivery services of Cloud-based infrastructure. There is also stories of a huge data analytics services that are able to provide higher-level services as compared to Amazon Web Service (AWS) and its current Elastic Map Reduce offerings. However, there is still a possibility of AWS expanding its licensing activities as it is embedded as the de facto clod computing platforms for several companies, other service providers and software specialist. Adobe The Adobe has announced two new achievements in order to remain relevant as a desktop computing. Following are the two new acquisitions a creative cloud to augment its Creative Suite software and a handful of touch-based tablets apps. Equally, the company has launched its existing released Flash Player 11 and Air 33 updates. Adobe said that it had acquired Type kit, an online font provider, and that it has signed an agreement to acquire Nitobi, creator of the open-source HTML5-based mobile development framework Phone Gap and Build, a hosted development and app creation service (Rossello, 2011). In a conference call for the press, Adobe VP of product management Lea Hickman described the company's news as a major initiative that radically redefines the creative process. CTO Kevin Lynch called the company's Creative Cloud "a major component in the transformation of Adobe" in a statement. This is obvious that the Adobe need to transform itself during early 2010. This is due to the announcement made by the Apple, for its iPad launch. In fact, it is made clear by the Apple’s CEO Steve Jobs that the Adobe’s Flash technology was not welcomed on iOS devices. It is also advised by the Apple’s CEO, that more dynamism must be placed while creating HTML5 tools because “"new open standards created in the mobile era, such as HTML5, will win on mobile devices (and PCs too)." Moreover, a conference call has been made for all the investors around two weeks ago the Adobe CEO Shantanu Narayen stated that he has taken Steve Jobs advice seriously “With the shifting landscape that favors HTML5-based content and application delivery; we are doubling down in our investment in this area.” (Rossello,2011). Nevertheless, the Adobe has protected the future of Flash for the several years. This has been done by making an agreement from Google in order to support Flash on Android devices. The company has been fudging by staking on Flash by developing HTML5 authoring tool such as, Edge and Muse. Due to this achievement, the Adobe has gained not only an open source cred-the phone Gap code is being given to the Apache Foundation. Moreover, a Cloud service and Phone Gap Build also promises the revenue in the world of open source. Previously, Adobe was offering its Creative Suite software on subscription basis. Also its recent offering shows a continuation of that trend. (Rossello, 2011) The Adobe’s Creative Cloud App remains blurred slightly. In fact, Adobe has promised to introduce new pricing as, well as additional details in November. According to the company “will become the hub for viewing, sharing, and syncing of files created by Adobe Touch Apps and Adobe Creative Suite, and includes 20 GB of cloud storage.” This reveals that a new version of Apple’s iCloud App will be made-to-order for the content creation professionals. For the Android tablets, the Adobe’s touch Apps has included all new six content creation apps. These Apps are promised to launch in November with the iOS versions to follow in 2012, thus assuming that Apple will allow them. Following are the Apps: Adobe Photoshop Touch Adobe Collage Adobe Debut Adobe Ideas Adobe Kuler Adobe pronto including previously introduced Adobe Carousel. References HORNE, A. (2011). Amazon in the cloud. Bookseller, (5493), 14-14. Rossello, R. (2011). Adobe takes to the cloud with new touch apps. Seybold Report: Analyzing Publishing Technologies, 11(22), 2. Read More