@mitch: Snuck in under the wire! As a wholesale offering there's a long-term market. As a retail offering it will be surpassed by the other models very quickly. You can see the trend already in how Microsoft and IBM are marketing PaaS.
Net-net, if you like, you will almost certainly be able to justify SaaS if you can integrate it with your current operations. Everyone but a small business will be able to justify PaaS for at least some applications. Most companies will likely not be able to justify IaaS except for special situations.
Here's another stat for you. If a company applies an X% expected return on a cloud project and they get a failure on the first one, they respond by multiplying X by 1.5 for the next one. Moral: Don't mess up the first project!
@docelder - cloud solutions typically charge for transport/storage/processing & support - usage based pricing is what makes it so attractive to start with but then something like the network requirements or data volume is missed in the initial TCO/ROI estimates
@docelder: It's best to do a sensitivity analysis to see what variables could expose you to incremental costs, then monitor those variables to see if they are exhibiting those changes in your current system.
@labnuke: I think that's probably true, but as I noted there doesn't seem to be any history of somebody getting tangled in them.
@mitch: IaaS scaling is complicated. The costs of the services may have some price benefits with scale, but it depends on the provider.
@Docelder: In the surveys the biggest problem reported is failure to meet benefits. The number one reason is neglecting a cost item and the number two was underestimating one. Number three is that costs changed with usage and the user didn't expect it.
I see the benefits and cost savings, and you mention cost creep, but I have yet to see someone lay out the costs that could/will go up and thus not lead to the ROI that we thought when we moved to the cloud?
@django1: Most of the cloud conferences are love fests between vendors and the press; there's not much "education" out there. This sort of forum is one of the few places where you can get anything.
@docelder: You can measure costs by getting the price list for a provider, finding out what they charge for, and then using a monitoring tool to measure how much of those somethings your application consumes per unit time. That will give you a starting point; the next step is a pilot test to validate that.
@django1: That's becuase of the prohibited technology rules here in the US.
@kim. The EC has asked for countries to normalize their rules on online data storage to prevent problems, but most of my EC contacts tell me that's an issue for only about 15% of the cloud prospects there, and there's no history of there being adverse enforcement of current rules.
@mitch: It's a marketing task, mitch. You can't afford to "sell" in a proactive sense to a small business, you have to induce them to come to you to try to buy. That means building mechanisms to reach groups of users through advertising, seminars, forums, etc.
@alison: Thanks! I was in Latin America talking with a prospective provider and their biggest question was "how the heck can I prospect for my service without creating an enormous cost and little way of gauging my return?
@mitch: To an SMB, it should be. Direct cloud services even at the PaaS level will be harder for an SMB to consume; they need vertical SaaS if they can get it.
@ailsion I think the problelm outside the US is a sales problem not an opportunity problem. You can't go door to door selling clouds out of your suitcase, and there's not as much an active community there to support marketing and prospecting.
That's a very interesting perspective, Tom. So a cloud provider is more like an integrator or VAR (do we say VAR anymore?). Technical expertise is assumed, vertical experties is what enterprises want to look for?
@mitch: Most IaaS today (in dollar terms) is sold as a hosting strategy to companies who are building specialized web products or services. Most PaaS is sold to mid-sized businesses dependent on Microsoft, and most SaaS is sold to companies with loose or little internal IT.
@kim: It does sometimes, Kim, but the problem is that IaaS only displaces hardware cost and most businesses of that size can run out to Office Depot and buy a server for under a grand. That's a tough price point to beat.
@alison; the main thing is to look for specific expertise in your own vertical. Then look for a cloud-hosted package from that provider, or for one who has at least hosted their product in the cloud as an integrator.
renaissance2000 - If you are having problems with audio, please refresh your browser. If that doesn't work, shut down and restart the browser. If that doesn't work, switch browsers. If that doesn't work, it's possible you're dialing in from a corporate network with a firewall that blocks this stream, in which case you'll have to log in and listen to the archive later.
so much of cloud is usage based - must have an idea of your usage and then watch it closely - kinda like a cell phone contract - minutes/data are separate charges... pretty much same for cloud solutions
@django1 No, but there were a maid and butler there and they kept asking me if I needed anything, which made me really uncomfortable because I'm not used to being waited on like that. I kept wondering if I'd wake up and find them hovering over the bed!
It was sure historical! The brothers also designed what was probably the first of those multi-head-spray-from-everywhere showers, which I got to use the next morning. Wilbur, however, had long passed away.
The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
Facebook plans to acquire Titan Aerospace, a solar-powered atmospheric drone manufacturer, for $60 million, according to a TechCrunch report. Titan, founded in 2012, develops drones that carry a 250-pound payload and fly at 65,000 feet for up to five years at a time. Titan Aerospace targets a number of industries, including agriculture, space, meteorology, and disaster response.
More and more companies are allowing or encouraging employees to bring their own mobile devices (BYOD) to work. It's a trend that is expected to become more commonplace in the years ahead, bringing with it management challenges for organizations. This year, according to a report published by research and consulting firm Frost & Sullivan, some 70% of organizations in the US will tolerate or embrace BYOD activity. By 2018, that figure is expected to exceed 78%.
The growing ease of application development has empowered users, enabling them to create software that once required significant time and expense. More users are turning to cloud-based platforms to become developers, building their own business apps to support a growing range of business processes. Often, these apps are considered "disposable," meaning they're built for a specific process need and then tossed out, never to be used again.
You've heard the expression, "Out of the frying pan, into the fire?" Amazon lives in the fire. The e-tailer wins by keeping things hot for its competitors, employees, and itself, according to a new book.
Positec, a manufacturer of power tools for homes and commercial applications, achieves greater customer service flexibility and cuts hold times in half by using a cloud-based service to manage its call center.
Big-data and analytics tools enable marketers to understand customers as individuals, identifying unmet needs and addressing each customer as a "segment of one," says John Kennedy, VP corporate marketing, IBM.
Acquire, Grow & Retain Customers: The Business Imperative for Big Data & Analytics Find out how to use big data and analytics to change how your business interacts with customers by incorporating all sources of data to help forge long-term relationships and realize value. A holistic view of the customer, made possible by big data and analytics, ensures unique experiences and personalized communications. READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE! REGISTER HERE
Wanted! Site Moderators Internet Evolution is looking for a handful of readers to help moderate the message boards on our site as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?