[ Cloud Computing ] Re: Big Players cornered the cloud?

Mitch, examine the price schedule for AWS.  You’ll notice that they aren’t selling excess capacity but just getting the most out of older infrastructure that is probably no longer used for retail ops.  In fact, these older machines might even be fully depreciated, from an accounting perspective.

 

Everyone else….as for Microsoft and Google, they are clearly on a path that they hope is world domination-esque.  As a recent report I published shows, a highly-effective cloud strategy combined with renewable energy is the recipe for making data center computing an unstoppable monopoly.  They might not be there “yet” with clouds, but believe me, they will.  They wouldn’t be spending $600 million per mega-facility if they didn’t have this as priority #1.  To think otherwise is just being naïve and/or delusional. 

 

Thanks.

 

Steve Denegri

Independent Data Storage Analyst

http://www.scsita.org/analysts/denegri.html

 

 

From: cloud-computing@googlegroups.com [mailto:cloud-computing@googlegroups.com] On Behalf Of Mitchell Garnaat
Sent: Monday, December 15, 2008 10:20 PM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Re: Big Players cornered the cloud?

 

Amazon is clearly leveraging the expertise they gained in running an internet scale, distributed web service for many years in a very low margin business.  But they are not selling their excess capacity from their retail operation.  In fact, they stated publicly that the total bandwidth consumed by AWS exceeded the bandwidth consumed by all of their retail properties combined.  And that was over a year ago.

Mitch

On Mon, Dec 15, 2008 at 11:00 PM, Dan Kearns <dan.kearns@gmail.com> wrote:

On Mon, Dec 15, 2008 at 5:05 PM, Peter Shenkin <shenkin@gmail.com> wrote:

On Mon, Dec 15, 2008 at 12:15 PM, Nik Simpson <nik@alaweb.com> wrote:
> Vince Marco wrote:
>> However, on the flip side of this you have an opportunity for existing
>> global companies to leverage their data centers by becoming "cloud"
>> providers.
>
> That's pretty much what Amazon did isn't it?

Something that should give us pause is that purchasing somebody's
excess capacity at an attractive price is building a business on a
waste product. But what happens when enough demand builds for the
waste product that it's not a waste product anymore?

Has it not been definitively established that EC2 is not built on Amazon's excess capacity? Is that some sort of Amazon-fighting FUD?

I recall, but am too lazy to cite examples of, various Amazon folks who have been quoted as saying that the technology behind ec2 was something they needed to build anyway, the logical result of trying to streamline capacity provisioning for their internal operations, at which point they realized it was (or should be) the type of commodity offering they saw as their core competency and built a separate business based on that?

The more interesting question is whether time-sensitive and discretionary compute tasks exist in roughly equal portions (or whether time-sensitive tasks will trend towards following the sun in equal proportion) such that demand-based pricing won't make a big difference if/when it arrives.

I'd love to see some of the iaas providers publish their time-of-day vs power consumption (or compute cycles, or whatever) data.
 
-d

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