Right now, virtualization is providing the stepping stone to move out of the traditional datacenter/IT shop model to infrastructure services (arguably, managed hosting is a step further ahead). The problem with this though is that as a company, you're still having to worry about the business need : infrastructure link at a fairly low level.
Where we're heading is toward the virtualization / abstraction of the next layers up. Companies will subscribe to services that satisfy the business need directly, rather than satisfying a requirement to service the business. For example, instead of buying a managed server, which you then have your IT folks manage an email service on, you'll buy that end managed service directly. (yeah, I picked an example where it's already happened). This is following out in other areas - CRM, desktop apps, etc. You know 'em already.
There's going to be a war between infrastructure providers (just like we saw with the commoditization of PC's), and the end-user facing software will have the same types of competition we've seen for years, with Big Giants with tons of functionality and a big customer-base trying to stay ahead of innovative fast movers.
A wise man once told me, if there's a war, sell bullets. The platforms that allow for an easy switch between infrastructure providers, and are compatable with the big software players, but allow for fast, easy, development are going to win big.
--Shane
http://shanebrauner.org/
http://twitter.com/shanebrauner
http://www.10gen.com/
Interesting perspective. What will drive the success or failure of this peak-use, hybrid cloud computing modeis its ability to save money for the CFO/CIO. For most applications, enterprises normally simply over-provision, suffering additional capex and consequent opex. Opex burden is endured for 100% of year. Capex is a single hit. Virtually providing peak resources on-demand has vale proposition of paying for capital and operations only as needed. If the specific application is only expected to peak with Gaussian probability, AND if the peak only occurs, say, 5% of the year, and if the peak demand MUST be satisfied orthe enterprise suffers from custoer satisfactio or other business metric, then elastic, on-demand hybrid is a fit for the enterprise.
But, the large dynamic that will affect this marketand its likely implementation is labor costs (opex) balanced against performance and cost of operations.
Performance and operations costs being equal, hosting the data center in an environment in which labor costs are lower will drive the pure external cloud model.
Operations costs and labor costs being equal will drive the data center/cloud to be located nearest the centroid of the cloud-rovider's target market to optimiZe performance..
Labor costs and performance being equal, data centers are likely to be hosted in regions in which power, service redundancy, security and other operational aspects are optimized.
Perhaps specific elements of the cloud that fit these three areas may be specifically located to reduce overall costs and optimize performance...a' la' akamai. A hybrid model deliverer will win as they couple a compelling financial model to their business case.
Dave
On Wed, Dec 17, 2008 at 12:44 PM, Shane Brauner <shane.brauner@...com> wrote:In current incarnations, your major cloud options are mainly IaaS - you get virtualized hardware just like a colo. It's at the next levels up where you're going to start seeing more inroads into internal IT.
I'm coming at this from the Infrastructure / Platform / Software tri-cloud perspective. At the platform layer, you no longer need to concern yourself with any of the OS/Hardware/VM management, configuration, or administration. You focus on your code, and forget about the machines. That's going to have a big impact on internal IT.
Granted - clearly not every application is suited for this. But it's a changing world. There are aspects of business for which this is a great fit and they'll be early adopters. This will spur development of more features and functionality which will in turn allow for adoption by a broader market. It's a feedback loop.
Shane
--
Shane Brauner
http://www.10gen.com/
http://twitter.com/shanebraunerOn Wed, Dec 17, 2008 at 10:45 AM, Ricky Ho <rickyphyllis@.com> wrote:
Right ! Large enterprise is unlikely to displace their internal IT with Cloud computing.
However, they will use Cloud Computing in 2 specific ways, which is described here ...
http://horicky.blogspot.com/2008/12/does-cloud-computing-make-sense-for.html
Large enterprises requires a new suite of "management / middleware" technology which enable their applications to work in a hybrid environment (a mix of public + private cloud). Also note that the cost dynamics in public and private cloud is very different. The technology should include a cost-aware scheduler that can deploy the application components in the most cost effective way.
Rgds,
Ricky
From: "Pietrasanta, Mark" <Mark.Pietrasanta@h.com>
To: "cloud-computing@googlegroups.com" <cloud-computing@googlegroups.com>
Sent: Wednesday, December 17, 2008 6:32:11 AM
Subject: [ Cloud Computing ] Re: Gartner: Will Cloud Displace Internal IT Services For Data Centers?
But again, it seems like people are missing the point:
1) Cloud Computing, at least in any of its current and pending forms, does almost nothing to reduce my internal IT staffing needs. It's no better than Co-Lo in terms of IT staffing requirements;
2) CC is more expensive than *any* of the alternatives, except in fringe cases (e.g. those with extremely volatile volume changes, and academic/research/"super computing" needs)
CC can't possibly replace internal IT services until CC *offers* some form of IT services. And the costs have to come way way down before it becomes a realistic alternative to Co-Lo (or for the small business, setting up a machine under their desk and hiring a college kid to manage it).
From: cloud-computing@googlegroups.com [mailto:cloud-computing@googlegroups.com] On Behalf Of Krishna Kurapati
Sent: Wednesday, December 17, 2008 9:18 AM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Re: Gartner: Will Cloud Displace Internal IT Services For Data Centers?
My View:
It also depends on size of organization. For SMBs, Core applications as well as non-core applications (if any) will shift to Cloud/SaaS model.
And with recent financial turmoil, many large companies became medium and medium became small :)
Any organization adopting cloud would be security/compliance, availability/accessibility.
and portability/migratability.
These requirements overweigh cost advantages depending on the vertical they play into.
Krishna Kurapati
Cloud Ventures
On Wed, Dec 17, 2008 at 3:37 AM, nagarajansankar@mail.com <nagarajansankar@mail.com> wrote:
Here is an interesting article that appeared yesterday.
http://www.informationweek.com/blog/main/archives/2008/12/gartner_will_cl.html?catid=cloud-computing
My take is that possibly Non-mission critical or Non- revenue
generating applications (the so called departmental applications) in
enterprises that may form about 20 to 25% of the total IT
infrastructure and services may find their way to the clouds..
Do share your thoughts...
- Sankar
http://www.linkedin.com/in/nsk007
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