|By Brian de Haaff||
|August 8, 2008 05:30 PM EDT||
Brian de Haaff's Blog
Cloud computing, utility computing, SaaS, on-demand, grid computing, etc. The jargon is back. The acronyms, the vendor jockeying, the funny names, and yes, the confusion. But does it really matter any more than it did 10 years ago when you couldn’t grab a bite to eat at the local Silicon Valley deli without hearing those three special letters – ASP – that were at the forefront of our collective brain when we talked about applications running in the cloud. (They usually came right after the other three letters: IPO, but let’s not go there.)
I remember well because I was in the vortex of the last cloud revolution. In fact, for better or worse I coined the category Application Infrastructure Provider (AIP) in 1999 while working at Concentric Network, responsible for marketing for the hosting product line and data center services. We were responding to perceived customer demand and media attention for ASPs (Application Service Providers). We had bandwidth, we had space, and we had servers—put it together and you get Infrastructure and the name. We productized the service and Network World named it Product of the Year. It was not our best seller.
So what’s changed in 10 years? Will the outcome be any different when we talk about businesses running software (or storing data) offsite and accessing it via Web browsers? Will they actually do it en masse? The pundits say, “Yes!”, but will it really happen this time?
I do think we’ll succeed this time because things are different.
There’s still lots of hype—note a recent June Deutsche Bank report that states “We expect SaaS revenues to grow to $56.5B in 2015 (nearly 70% of the overall market in just 8 years time).” But, I think that things have changed for cloud-based on-demand services in five major ways that will alter our collective computing future:
1. ASPs (and AIPs) were single tenant driven, which means that you were responsible for piecing together your own infrastructure (whether you provisioned your own or rented it from the provider) and also for creating or buying the software that ran on it. This was akin to moving your own data center to a third party facility. You still had almost all of the same IT headaches. Today, cloud-based, on-demand services are multi-tenant. Vendors pull together infrastructure and resources, and automatically allocate and balance them so many users can simultaneously use them.
2. Because the platforms are multi-tenant, the vendors can cost-effectively take on more responsibility for the underlying technology. Businesses now take advantage of the scale and efficiency that comes through the vendor’s ability to serve multiple companies on the same computing platforms. This is a fundamental shift because businesses are no longer responsible for maintaining the infrastructure themselves, no matter what type of on-demand service they choose.
3. Salesforce.com. Enough said.
4. Ubiquitous broadband. Enough said.
5. Every established software company is making significant investments in moving their offerings to an on-demand, pay-as-you-go business model (not to mention the heavy hitters like Amazon and Google that are already offering their own on-demand services).
In addition, to the fundamental changes that have taken place, the benefits of on-demand services for businesses and their end users are clearer. The advantages include instant access to the software that businesses need to improve their operations, cost efficiency of pooling their software and computing needs with other companies, reduced risk of failed software implementations and tapping strained internal IT resources, and flexibility in terms of being able to change providers. This all comes with the tradeoff of relinquishing some control, but it appears to be well worth it to most companies.
So, it appears that on-demand services are really happening this time, so let’s try to agree on a framework for talking about the various offerings. And let’s start with a diagram to simplify the discussion:
When you boil it down, on-demand services are all cloud computing based. And there are really only three types of them:
1. Software-as-a-service (SaaS) is really where this wave started and it makes up the largest bucket. These vendors typically provide a single application or a cluster of small applications targeted at a general business task (e.g. CRM, billing, HR, etc.). Examples include Salesforce.com for front-office activity, Netsuite for back-office activity, and Paglo to manage IT and operations. They are “application specific” meaning that the business uses the functionality that the vendor provides rather than building their own. The vendor builds out and manages both the infrastructure and the software and the customer only needs to input or manage their data in the applications.
2. Platform-as-a-service (PaaS) offerings get slightly more complicated. Here the vendor provides the infrastructure, software stack, and typically a data source. This is an emerging cross-over area that successful SaaS and online vendors are now promoting. This is often where the SaaS provider opens up their platform to third party applications (whether built by a business to serve its own needs or developers to sell to the businesses that are already using the core SaaS offering). So while this expands the application functionality of the SaaS provider, the applications are still related to the core offering. For example, Salesforce.com’s Force platform is designed mostly for customer-relationship oriented applications that leverage the data in a Salesforce.com customer’s account and Facebook’s F8 platform is ideally suited for additional applications that tie to the user’s social network. We would also put Google’s App Engine into this category (despite the fact that they do not provide a data feed).
3. Pure cloud computing platforms provide the server infrastructure and the business is responsible for their own software stack and ultimately the application that runs on it. The business can run just about any software that it wants as they are “application agnostic.” The main force (and a good example) in this market is Amazon Web Services
Here’s one way to compare the application flexibility and level of responsibility that the business takes on with each option:
It’s true, ASPs are dead, but they set us on the path to get on-demand services right. Advancements in technology and service delivery have improved the value for businesses to adopt these services. Now, let’s just start being clearer about what’s happening, so businesses can best choose the services that will help them succeed.
We are well on our way – long live the cloud!
[This article appeared originally here and is republished in full with the kind permission of the author.]
|The Subversive 07/16/08 01:30:59 PM EDT|
Profitable 'cloud computing' companies – Salesforce.com (subscription), Digg (text based payloads), Google (text based payload). Unprofitable cloud computing companies – Gmail (text, pictures, video), YouTube (video), Flickr (photos), Hotmail (text, pictures, video), Plaxo (contacts). You get the picture. While always-available consumer and corporate data and content services are incredibly popular for a range of scenarios, they're incredibly expensive to host and maintain.
In the end very few companies will be able to do this profitably, because it will be a tripartite equation: audience size, data payload size and egress/ingress rates and payment model. Anyone who fails to balance the three in a sort of perfect triple point will fail at it.
|Morph eXchange 07/16/08 01:19:33 PM EDT|
We are a SaaS enabler based in Asia, initially harvesting on the power of EC2.
|Jargoneer 07/16/08 01:09:48 PM EDT|
"Persistence as a Service" is another new one - anyone heard that one yet?
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 28, 2016 10:00 AM EDT Reads: 254
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 28, 2016 09:30 AM EDT Reads: 1,392
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 28, 2016 09:00 AM EDT Reads: 1,603
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 28, 2016 07:30 AM EDT Reads: 519
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 28, 2016 06:45 AM EDT Reads: 1,557
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jul. 28, 2016 05:45 AM EDT Reads: 2,326
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 28, 2016 03:15 AM EDT Reads: 2,649
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 28, 2016 03:00 AM EDT Reads: 1,642
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 28, 2016 02:30 AM EDT Reads: 1,560
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Jul. 28, 2016 02:15 AM EDT Reads: 1,414
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jul. 28, 2016 02:00 AM EDT Reads: 2,069
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Jul. 28, 2016 01:45 AM EDT Reads: 1,122
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Jul. 28, 2016 01:15 AM EDT Reads: 881
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 01:00 AM EDT Reads: 1,639
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 10:30 PM EDT Reads: 1,420
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 27, 2016 10:00 PM EDT Reads: 2,685
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jul. 27, 2016 09:45 PM EDT Reads: 2,019
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 08:00 PM EDT Reads: 2,047
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Jul. 27, 2016 07:30 PM EDT Reads: 1,127
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 27, 2016 06:45 PM EDT Reads: 1,207