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CEO guide to Cloud Computing

A Sea Change in Computing

Some analysts say cloud computing represents a sea change in the way computing is done in corporations. Merrill Lynch (MER) estimates that within the next five years, the annual global market for cloud computing will surge to $95 billion. In a May 2008 report, Merrill Lynch estimated that 12% of the worldwide software market would go to the cloud in that period.

Those vendors that can adjust their product lines to meet the needs of large cloud computing providers stand to profit. Companies like IBM, Dell (DELL), and Hewlett-Packard (HPQ), for instance, are moving aggressively in this direction. On Aug. 1, IBM said it would spend $360 million to build a cloud computing data center in Research Triangle Park, N.C., bringing to nine its total of cloud computing centers worldwide. Dell is also targeting this market. The computer marker supplies products to some of the largest cloud computing providers and Web 2.0 companies, including Facebook, Microsoft, Amazon, and Yahoo (YHOO). "We created a whole new business just to build custom products for those customers," Dell CEO Michael Dell says.


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