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Cloud Computing Marketplace Where We Think It's Heading

April 14, 2012 | Comments: 0 | Views: 109

We get an interesting perspective on the market place. Our clients depend on us to steer them in the right direction for their IT and Cloud needs. The engagements we participate in that allow us to really make decisions along side our clients and watch the implementation and growth occur. Surveys, interviews and other assessments aren't things we currently do but can give an analyst thousands of data points to examine. In our work, we gather fewer data points but each point is much deeper giving us a different perspective.

So here's what we see in the Cloud space right now:

Cloud providers have so effectively automated and accounted for costs down to the computing unit and proven they have vast capacity it's becoming harder sell the following:

1. Start costs unless massive infrastructure is being deployed

2. Long term contracts unless substantial savings are involved

3. Non - automated tasks / no control over any aspect of the environment. (i.e. you need to open a ticket to get something done

What do purchasers of cloud look like? We are seeing 2 types of clients:

Small to Midsize organizations

These buyers need full control over the environment. Other than some replication and light API use they don't need the ability to burst nor to expand their footprint dynamically from their own datacenter. Their own datacenter holdings maybe light or non existent at all. They are quite happy having all their computing infrastructure with the cloud provider. These can be traditional companies or high tech companies that don't want to build out an operations team.

Large Organizations

These are the firms that need to dynamically scale their environment off their platform and onto the Cloud providers platform. This is sometimes referred as Cloud bursting. Security, scalability and integration are key here. This is probably someplace where contracts will be signed since the footprint is ongoing and connected through a unified management console that the client owns and controls.

The OpEx vs CapEX argument revisited

This topic has also been well addressed online so we only have a few points to add to the discussion.

Smaller organizations that preferred to write one check and keep month operating expenditures lower are realizing that you never really do escape some type of on going fee without sacrificing uptime. Maintenance on hardware, software, consultants for upgrades and in house staff to keep things moving are unavoidable. Even as reliable as systems are becoming, the complexity and the work required to keep things running remains.

Larger organizations that can exceed the economies of scale of a cloud OR those who are in finance or in the defense industries will get to the point soon where their datacenters will be so automated, measured, cost predicable and scalable that they can even contemplate selling off excess capacity and billing it to outside firms. This is how Amazon started.

So the Cloud is truly becoming a utility but it's not free and still costs money and requires expertise to manage even though it's external. We'll revisit this subject as 2012 continues to see how it's changing from our quick and dirty analysis above.

ColoAdvisor allows you to receive colocation and hosting quotes from top firms quickly and anonymously. ColoAdvisor has been advising firms seeking to host critical applications since 2007. For more information on New York Colocation and Cloud Computing Marketplace visit

Source: EzineArticles
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