Introduction
The
popularity of social network makes our life and business more convenient and
efficient. For individuals, we are able to contact people within seconds
through Internet network. Compared with old times using letters, it is a big
movement. For business, ways of conducting business are also changing. People
use email to communicate with each other. The usage of faxes and letters are
reduced as well. What will be the next step for the development of Internet?
Many people are asking.
The
word “cloud computing” comes into ours eyes. Cloud computing is not a new
concept. It evolved in the late 1900s, which was a metaphor for Internet based
on utility and consumption of computer resources. It comes from the early days
when network engineers used a cloud in their network design illustrations to
indicate unknown domains. The engineer knew the domain was there, but the
details of that domain were unknown. This network of clouds is how we view the Internet
today.
Industry profile
Cloud
computing has a close connection with social network. When hearing the term
cloud computing, many casual Internet users may think it is so complex, which
must be have nothing to do with their lives. However, many social network
providers (SNP) providers are using computing processes. A social network is a
structure of entities interconnected through a variety of relations. These
entities are typically referred as “users”. There exist a number of online
social networking websites such as Facebook, LinkedIn and Twitter. If you have
performed a Google search, checked Yahoo email, or signed in to Facebook, you
have reached into cloud. Cloud computing is already integrated into our
everyday lives.
What
is cloud computing? Cloud computing is defined as hosted services for storing
and delivering personal content over the Internet. Over the words software or
your content that would normally be posted on your computer is, instead, hosted
on a server and accessed by your computer via the Internet. These services are
broadly divided into three categories: Insfracture-as-service (IaaS),
Platform-as-a-Service (PaaS) and software-as-a Service (SaaS). The name cloud
was inspired by the symbol that’s often used to represent the Internet in
flowcharts and diagrams.
As
discussed in the second assignment, cloud computing is widely used in music
industry. The Amazon players enable music fans listen to music anywhere as long
as there is Internet connection. The cloud computing technology backs up Amazon
to provide the service. Regarding the social network, the cloud computing seems
invisible. However, it has multiple functions. Cloud computing in social
network is like platform, software and infrastructure as well. The multiple
functions enable social network providers have more opportunities in global
environment, which contributes to new business models across industries.
Opportunities
·
Application
diversification
Internet
itself is the trigger that fastens the globalization. Social network is
connecting people from all over the world. Sharing pictures, stories, people in
different places get to know each other. Because of the technical support from
cloud computing, a great amount of opportunities appeared for social network to
further develop itself.
Cloud
computing technology can diverse the application of social network. In social
network, there are many applications. We can have online music, online games
and etc. in the social network. Social network do not explore all application
by itself. Instead, cloud computing as software, can integrate the applications
from other service providers. For example, Facebook users can build scalable
cloud based application hosted by Amazon Web service, Amazon cloud player.
Through the cooperation, SNPs do not have to make big investment in R&D, in
building infrastructure. There cost will be reduced tremendously since the
operational and administrative cost can be eliminated. It is a win-win
situation. On one hand, by diversifying the application, customers’ demand is
met. On the other hand, SNP develop its business with least capital
consumption.
·
Data
analytics
The
storage function of cloud computing saves the social network. When users
increased within minutes, social network is easily overwhelmed. While, after moving
to cloud services, the problem is solved. When people in different geographical
area are using social network, their data will be stored in the cloud of those
social network. Social network provider (SNP) has a pool of customers’ data. By
analyzing customer data, SNP will be able to understand customers’ demand much
better. The understanding shall help SNP to formulate its strategic move in the
overall company development. The data stored in cloud is what companies in
other industries need. This is the charm of cloud computing which enable
companies to do data analytics. In conduct marketing survey, data is essential.
They can understand customers’ behaviors, their interest as well.
New business model
Ø Integration
With
the adoption of cloud computing, the social network can integrate the
application of third parties who are cloud-based services into their websites. It
has become SNP’s new business model as integration.
The
example of Instagram tells us that the integration of social network and cloud
service provider makes better business. The social network Instagram is paying
for the cloud service based on the storage it actually consumed. When Instagram
first launched in October 2010, it was running off a single machine in Los
Angeles. Within a few hours, the server was overwhelmed due to the rapidly
increased users. Instagram set up cooperative agreement with Amazon by using its
Elastic Compute Cloud. Users’ data will be stored in the cloud that they can
access into the cloud in anywhere and at any time. The scalable cloud service
enable Instagram to grow steadily, which also is a major impact on its
business.
Ø Customized service
As
mentioned earlier, data analytics is the opportunity that cloud computing
offered to the social network providers. Taking advantage of this opportunity,
the SNPs is able to make more strategic decisions. Instead of issue new service
blindly, SNPs is able to provide the right products and service to the right people.
Their products are more targeted in the market. The correct and accurate data
analytics based business model shall avoid money and time waste. There will be
bigger popularity with its service and rapid increased revenue as well.
Ø Turn to be mixed platform –
social and business platform
The
cloud computing technology create new business model cross industries, which
transfer social network a mixed platform, both social and business. Social
network providers are earning revenue from its active users. By the activities of
users such as description, visual products, and etc., SNPs is able to get its
profit. Thanks to the cloud computing, the social network has another function,
which is the business platform.
Sharing
information is a new way to do advertisement. One unique characteristic is that
people’s connections in the social network are between friends. For example, if
I found a good music in Amazon cloud player, I can share it by click the button
“share” into Facebook. When my friend listen to it meanwhile like it, they can
click the “favorite” and re-share it. If more people like it, the music shall
be spread quite fast. The particular music will become popular soon only by the
sharing between friends in Facebook. It has gradually become the new mode of
advertisement because the shared information between friends is always believed
to be trustworthy.
Nowadays,
organizations tend to do marketing, recruitment in social network. It is
attributed to the cloud computing technology. The cloud computing allows social
network to become a business platform for organizations. Instead of simply
supported by individual users, the engagement of organization in social network
shall make SNPs have more sustainable development.
Conclusion
Although
the cloud computing technology does have offered great opportunities and new
business model to social network, there are important issues that we need to
pay attention. The privacy issue is always in the top position when we talk
about social network. How to protect users’ privacy when conducting data
analytics is what they need to think about. Meanwhile, users actually do not
like too much advertisement in the social network, which is a disturbance
sometimes. To make the advertisement invisible but effectively workable is what
the third parties and social network need to figure out.
Reference:
1.
Dave
Kusek (2014), 10 Secrets of Social Media For Musicians; Hypebot.com
2.
Instagram:
a case study for the clouds (2013), SSD Cloud Computing News and Industry Blog;
3.
Robert
B. Milligan & D. Joshua Salinas (2013), Keeping Trade Secrets in Social
Media and Cloud Computing, IP Litigator;
4.
Sanjay
P. Ahuja & Bryan Moore (2013), A Survey of Cloud Computing and Social
Networks, Canadian Center of Science and Education;
5.
Vanessa
DiMauro (2010), Social Media and Cloud Computing: A Call to Action for IT
Leaders, Socia`l Business.
