Did Zynga Make the Right Decision In Joining The Cloud Arena?

Derek 9 May 2012 2




Zynga, a household brand name for social network gaming, has made an interesting move of housing its own private data centers. This monumental business leap provides Zynga more opportunities to hold its position as social media’s unshakeable force in online games, allowing game developers to host their product using Zynga’s untested warehousing structure.

Gaming in social media platforms continue to rise both in membership and context. The year 2009 saw how social games became one of the top reasons why people registered for a free account on Facebook – the mighty Farmville turned everyone into virtual farmers and harvesters, and thus inspiring companies to take social play seriously.

The entailing benefits of this particular in the social gaming arena leverages Zynga’s quest to dominate social gaming. But did the company made the right move from moving some parts of its cloud computing infrastructure to its own? Charles Babcock of InformationWeek reveals that Zynga relies heavily on Amazon’s cloud infrastructure-as-a-service (IaaS).

This transition (Zynga will approximately incorporate 80% of the computing capacity) questions the company’s ability to sustain its credibility store and run games properly. Zynga has never had the corporate bio-data as a cloud computing industry player. Seeing the direction that Zynga is heading into, the company is definitely pushing the envelope to secure a spot in the higher echelons of social gaming.

Zynga will then go head-to-head against a more established cloud computing leader, which recently bagged the 2012 Channel Champs for Cloud Applications. There’s going to be a lot of competition.

Compromising security – The way I see it, Zynga’s venture into the cloud isn’t actually newsworthy but controversial, at the very least. The partnership between Amazon and Zynga looks perfectly harmless – the biggest multinational E-commerce company in Earth managing all the big data for the world’s marketable social gaming company is a match made in Heaven.

On the murkier side of the situation, Zynga looks to capitalize on its new-found business model to developers host their games inside the servers of a competitor. By the way things are shaking up, Zynga is using the infinite capacities of public cloud computing to phish for some new ideas. Maybe Zynga is losing its tight grip on the social gaming market to pull off a profitable stunt like this.

Credibility issues – Zynga has reportedly slashed 80% of its cloud computing needs from Amazon. What about the other 20%? Zynga is still starting out, and the company doesn’t have this detailed security protocol that could wipe the company out of the IaaS map for good. Amazon still holds a piece of the framework in case Zynga’s untested servers go on a technical rampage and give up on its clients.

On the side note, the Zynga Platform could help start-up game developers to duplicate the concept of Zynga’s impressive core of social games like Mafia Wars and Hidden Chronicles.

Whisking security issues aside, a high level of trust is required for these developers and if they really want to host their games to a potential competitor in the future, these companies should know that Zynga hasn’t really performed up to its normal standards as of late.

The company has posted an alarming profit loss of almost $85 million dollars for the first quarter of 2012.

 

 




Derek (1 Posts)

This guest post was written by Derek Ian Vicente. He writes all about the concerning topics relevant in the growing industries of video games, cloud computing, social media, and business intelligence. Send him a greeting over at Facebook.

2 Comments »

  1. Lukasz 20 July 2012 at 7:45 pm - Reply

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  2. Rohit 4 September 2012 at 2:22 am - Reply

    What cloud computing way to one invuiddial might have a wholly different meaning to another person. At Nimbo Tech we percieve cloud computing as a innovative yet disruptive technology which allows us to higher server specific industries. Nimbo Tech has generated solutions in Healthcare, Supply Chain, Retail, Media, and Finance in Cloud Computing. We’re specifically pleased to work when the windows are Azure Platform.

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