Towards Successful Grid Business Models with Efficient Value Chains Prof. Dr. Katarina Stanoevska mcm Institute – University of St. Gallen

Business Experiments in GRID 2 Agenda BEinGrid – the Project mcm Business Model Framework Market Entry Approaches Conclusion

Business Experiments in GRID 3 Grid Scene  Europe is a leading player in Grid research (upper layers) As a result of FP5 and on-going FP6 IST Grid research, there has been significant number of software middlewares and tools. GRID architectures solutions for enabling the management of distributed resources across multiple enterprises boundaries and creating collaborative environments (Virtual Organisations)  Grid technology is coming of age  Future ICT in next decade will be dominated by service orientated architectures  Grid is moving from research and academic use to a wider adoption by enterprise  There is a market place for Grid services

Business Experiments in GRID 4 Project Data Sheet Type of project: Integrated Project Project coordinator: Mr. Santi Ristol (ATOS ORIGIN) Project start date*: 1st June 2006 Duration: 42 months Max EC contribution: 15.7 M euros Consortium: 75 partners + open call (2M€) The mission of BEINGRID is to Exploit European Grid middleware by creating a toolset repository of Grid services from across the Grid research domain and to use these services to deliver a set of successful business experiments that stimulate the early adoption of Grid technologies across the European Union.

Business Experiments in GRID 5 BEinGRID S&T Approach Technical cross activities Trust & Security VO Management Service & Data Mgt Architecture & Interop Selected branches: GTv4, UNICORE/GS, g-Lite, GRIA, WS-* Business cross activities Dissem. & Exploitation Market Study Business Modeling Mdw-1Mdw -2 Mdw -n BE1 BE2BE3... BE4 BE5 BE18 Repository

Business Experiments in GRID 6 Strategic Objectives Understand the requirements for Grid use in commercial environment, involving software vendors, IT integrators, service providers and end-users Enable and validate the adoption of Grid technologies by business Design and build a Grid toolset repository with components and solutions on top of Grid middleware distributions (like GTv4, UNICORE, gLite, GRIA) Develop and deploy a critical mass of Grid-enabled pilots, embracing a broad spectrum of economic sectors with different needs and requirements in terms of technological Grid challenges

Business Experiments in GRID 7 BEinGRID at a glance SP Business Experiment Value Chain End- User Service Provider Experiments by sectors Experiments by technology Common facilities Integrator SP Finance MultiMedia Retailing Logistics Chemistry Goverment - Public service Aerospace Enviromental Science Textile Ship Building Engineering Automotive

Business Experiments in GRID 8 FP5 project What is this project about? To be or not to BE in GRID

Business Experiments in GRID 9 The Chasm Main Street The tornado The Bowling Alley Niche Marketing Innovators Early Adopters (visionaries) Early Majority (pragmatics) Late Majority (conservatives) Laggards (skeptics) Grid Technology Adoption Life- cycle Grid Science Computing Next Generation Grid Enterprise Applications Service Oriented Utility for the Knowledge Economy Grid Enterprise Infrastructure (on-demand) BEinGRID bowling Initial Market

Business Experiments in GRID 10 Business Model Analysis A business model is the specific way of doing business.

Business Experiments in GRID 11 MCM Business Model Framework Features of the specific product Potential customers Features of the specific medium Value chain Financial Flow Flow of Goods & Services Societal Environment (Legal, ethical and social aspects) Science Enterprises Security Reliability....

Business Experiments in GRID 12 Value Network Product or Service Provider Fee for Service Feedback and Usage Data Loyality Sense of Community Personalized Offerings Technology Support Customer or End User

Business Experiments in GRID 13 The Segments of the Value Chain Ics for Proces- sors, Comms, etc. Grid Hard- ware Opera- ting Sys- tems Grid middle- ware Grid Appli- caton Grid Sys- tems Inte- gration Grid as Service Grid Software Vendors

Business Experiments in GRID 14 Grid Markets Science Business –Enterprise Grids –Partner Grids –Service Grids

Business Experiments in GRID 15 Potential market Entry Strategy Grid Middleware, Grid Application & Utility Software & Proprietary Upper Middleware Grid Software VendorsUsers Open Source Science Univer- sity

Business Experiments in GRID 16 Expected Worlwide Grid Spending by Type of Organisation ( ) Source: corp.com/%5cExecSummaries%5CGrid05ExecSum.pdf

Business Experiments in GRID 17 Market Entrance Approaches to Enterprise Grid Market Horizontal approach, by marketing Grid technology in general Is this the right approach to develop the enterprise market?

Business Experiments in GRID 18 Required Competences to Enter the Enterprise Market Technology Competence Sophisticated Product Knowledge about the application area –i.e. standard procedures Soft aspects as change management, business process redesign Access to the right customer –Application and process owner, or –CTO or CIO Vertical market approach

Business Experiments in GRID 19 New Options II Grid Middleware, Grid Application & Utility Software & Proprietary Upper Middleware Grid Software VendorsSystems ResellersUsers Open Source Entre- prise Multiplicators Consul- tants

Business Experiments in GRID 20 Conclusion  Grid technology is coming of age  Future ICT in next decade will be dominated by service orientated architectures  Grid is moving from research and academic use to a wider adoption by enterprise  There is a market place for Grid services  There are successful examples of first applications  The market needs to be developed in a vertical manner  Value chain needs to be extended by multiplicators

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