[ Cloud Computing ] Cloud Usage Patterns for large enterprises

For large enterprises who already has an established IT organization
and bulk equipment purchase, "Cloud Computing" still provides value in 2 circumstances :

1) As an "Overflow Buffer": Enterprise no
longer need to over-provision their data center for the peak load.
They just need to install equipment in-house for the average load.
When peak load arrives, they just automatically provision additional
resource from the cloud and redirect the excess load to those extra
resource. This means huge equipment cost savings.

2) As an
"Experimental Playground": Enterprise need a fast turn around to test
out new ideas and customer acceptance. But it is hard to justify
equipment purchase before the idea is proven. So they can deploy the
new project in the cloud to test out the acceptance. If it doesn't
work, they just tear the project down and no equipment is wasted. If
the idea work, they start to purchase in-house equipment and migrate
the application from the cloud to the inhouse data center.

For these large enterprise, I believe their ultimate operating environment will be a
mix of "data-center" and "public cloud". One major challenge is how
to migrate their application components seamlessly between the "private" and
"public" facilities efficiently without sacrificing security, reliability
and performance. This is an area that Amazon/Google/Microsoft is not motivated to solve (as Amazon/Google don't like your datacenter portion and Microsoft won't take care of your enterprise Java apps). I believe this is an area where startups can shine.

Rgds,
Ricky

----- Original Message ----
From: Vince Marco <vmarco@mac.com>
To: cloud-computing@googlegroups.com
Sent: Monday, December 15, 2008 8:31:04 AM
Subject: [ Cloud Computing ] Re: Big Players cornered the cloud?

I see cloud vendors being more beneficial to small and medium sized
companies .... rather than say the global companies that already have
established global infrastructure. The barrier for entry is lower for
groups that are not already global or spread across multiple data
centers.

However, on the flip side of this you have an opportunity for existing
global companies to leverage their data centers by becoming "cloud"
providers. Then they don't risk putting their enterprise data into a
vendor cloud, and can open up a revenue stream to help leverage the
cost of their already existing global infrastructure and also pay for
a portion of their path to converting existing apps into their
"cloud". That seems like the path of least resistance.

Vince Marco
Enterprise Frameworks, Inc.

>>
>> There's an argument to be made that IAAS requires an awful lot of
>> capital which will limit it to big players. However I think that
>> there
>> are some creative ways around that (eg 3tera's franchising approach),
>> and that hardware for both compute and networking are almost
>> certain to
>> see some disruptive changes which early comitters of capital will
>> not be
>> able to take advantage of.
>>
>> Everything above the hardware is wide open space though, and I would
>> question any strategy currently predicated on a fully-integrated
>> stack.
>>
>

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