Welcome!

Agile Computing Authors: Yeshim Deniz, Pat Romanski, Elizabeth White, Derek Weeks, ManageEngine IT Matters

Related Topics: @CloudExpo, IBM Cloud, Microsoft Cloud, Artificial Intelligence, Server Monitoring

@CloudExpo: Blog Feed Post

The Long Tail of Cloud Computing?

Is it possible the purveyors of cloud computing are missing untapped potential of harvesting less of more?

My watered down translation of Long Tail theory is simply the notion that the aggregate sum of stuff buyers take in small, infrequent quantities will invariably outstrip the aggregate sum of the most popular counterparts.

Research evidence is beginning to corroborate what we saw some three years ago: There is a Long Tail in Cloud Computing. Consider some well accepted research points from IDC and others of late:

  • The Cloud Computing market will hit USD $42 Billion by 2012
  • Of that, more than 50% will comprise business process applications (the stuff we all use daily to run companies big and small)

So, I can infer then that some $20 Billion will comprise the 2012 feed bag from which all the little cloud computing piggies will line up at the trough to consume. Not a bad market, from 10,000 feet away. But here's the thing. The cloud computing market is already becoming pretty full. I mean rush hour commuter train full and it will get even more crowded in the coming few years. $20 Billion doesn't last long when you have a litany of players stepping up to the plate, and with the recent moves made by Oracle, Microsoft, EDS and other big time shops, the groovy young open source outfits that are all the rage now could very well be fighting over table scraps by 2012 (um, what's your exit strategy?). Table scraps in a $20 Billion market? Imagine that. Welcome to the hysteria of cloud computing.

So where is the refuge for agile boots trappers like 6fusion and the fraternity of cloud junkies in 2009?

There is another little research stat that is important, but that you won't find on any other cloud computing blog: IDC estimates that the net spending on IT services within the SMB space to eclipse USD $160 Billion by 2012.

Wait a sec. Hold the phone. How can SMB's spend that much money on IT services, yet the business apps the cloud industry is going to cuts it own throat to grab will only comprise some $20B? That's a pretty big gap, doncha think?

Herein lies the Long Tail of cloud computing.

Whilst the present day cloud computing vendors flock to gobble up the web based applications that made Web 2.0 more popular than a Rolling Stones reunion tour, the bigger market is all those business applications that automate processes and make the average SMB take flight. "Rubbish!" says the average pimple-faced freshman-drop-out-turned-internet-entrepreneur. The world is going to run on web services! Legacy apps are passé and unsexy. They are a dying breed, ready for the IT graveyard.

Maybe. But the research says not for the foreseeable future.

Here is what I don't think cloud computing companies ‘get' today: Technology is made to fit business; business is not made to fit technology. This point was nicely driven home recently by VMware's Dan Chu. In his blog post, Dan delivered a nice little kidney shot to the Google-ites. Here is my favorite line: "Customers are looking to match their IT platform to their business needs, not the inverse. The Google approach calls for a least common denominator set of non integrated cloud services that everyone squeezes into. Customers want the flexibility and breadth of solutions that exist today along with the efficiency of the cloud." I couldn't agree more, Dano. And I'll take that one step further. Real businesses are a made up of a collection of processes and procedures, which technology typically augments to make things faster or easier. So, unless what you are peddling can plug into Reality 1.0, I wouldn't want to the guy whose paycheck depends on widespread adoption.

Of course, Chu sounds like a kool-aid-drinking evangelist too. He just belongs to a different cult. But if you look to the school of product management, a field that suffers from a little less myopia, you will get the same type of message. In his concise post-mortem on The Demise of Cassatt, Saeed Khan illustrates a critical axiom that I think a lot of cloud service providers either ignore or don't understand: "Nobody, and I mean nobody, gets up in the morning and thinks, "I'm willing to change everything about how my business operates because a vendor has a really great product that could save me money."" In my opinion, that's why there is such a discrepancy between what the SMB market is going to spend and how much the cloud computing market for business applications will be worth, now and in the future.

It stands to reason then that the Long Tail of cloud computing could very well be the operation of critical business applications that are not sexy Web 2.0 apps or otherwise qualify as ‘way cool'. Is it possible the purveyors of cloud computing are missing untapped potential of harvesting less of more?

Read the original blog entry...

More Stories By John Cowan

John Cowan is co-founder and CEO of 6fusion. John is credited as 6fusion's business model visionary, bridging concepts and services behind cloud computing to the IT Service channel. In 2008, he along with his 6fusion collaborators successfully launched the industry's first single unit of meausurement for x86 computing, known as the Workload Allocation Cube (WAC). John is a 12 year veteran of business and product development within the IT and Telecommunications sectors and a graduate of Queen's University at Kingston.

@ThingsExpo Stories
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...