Okay, let’s face it. I know at least one Enterprise organization that has migrated their traditional infrastructure to one based on Cloud Computing. That would be The North Pole. Their CEO is none other than Santa Claus (Saint Nicolas, Kris Kringle & Father Christmas are some of the other aliases he goes by). He runs an incredibly efficient organization with Mrs. Claus as CFO and the Head Elf as CIO. They have a very predictable business cycle, which includes global, year-round information gathering and management that catalogs the “naughty” and “nice” people world-wide coupled with a robust transportation and distribution system active only one day annually. How is this all accomplished so efficiently year after year?

I recently spent some time with Santa and had the opportunity to ask him a few questions about his organization. Below is a transcript of our discussion:

Me: Hello Mr. Claus.

Santa: Ho ho, please call me Kris.

Me: Ok Kris. Thanks for spending some time with me today and granting me some insight into your traditionally “closed” organization.

Santa: But of course. Transparency seems to be quite important nowadays. Obviously I can’t disclose all of my secrets; that would take away my magic!

Me: Ok, I understand. So let’s dig into this. For me, and many other technologists out there, your IT infrastructure must be amazing! Can you give me some insight into how you accomplish what you do?

Santa: Sure. So let’s take a look first at how things were done previously. Long before computers and servers were mainstream within our organization, we relied heavily on word-of-mouth and traditional delivery methods. It was a very decentralized environment. For example, children around the world wrote letters that were delivered via “snail-mail” to our corporate headquarters. Letters were read, manually sorted, categorized and audited against the NoN (Naughty or Nice) list. During the holiday season, we were forced to hire many temp workers and managers to oversee the process. Prior to that, we had a distributed workforce around the world essentially spying on children to ensure their compliance and meeting our strict NoN requirements. As the data was manually tabulated, it was physically transported back to Corporate. The holiday season represented a manual merging of the two data sets: letters from children and the NoN audits.

Me: Well, that certainly sounds complex, time intensive and very inefficient! What made you decide to re-engineer your business processes?

Santa: Yes, it WAS very intensive. My beard and hair aren’t just white from old age alone! Ho ho ho. Well, as the world population grew and became a bit more complicated, we realized that we could not scale efficiently using manual methods. It simply wasn’t working. Believe it or not, we did have several mid-year strikes and walk-outs by the elves. It was not a pretty scene. Luckily we employed an incentive-based strategy and coupled that with a complete implementation of an IT infrastructure. I quickly became the unofficial CTO of the organization. Here’s a little secret that I will probably get in trouble for saying: You know all of those children who asked for computers for Christmas and never got them? Well, they were produced by us but we opted to exercise eminent domain and requisitioned them for our own infrastructure. Those children that were affected all received the second item on their list, however.

Me: So, you essentially set up a large server farm using those bare-metal servers. What did that do for you?

Santa: That’s right. It was a difficult decision to make, especially with how we undertook the acquisition process. Ultimately though, it was a wise choice. The next challenge that we had was in the conversion from a manual process to one that was much more automated. We considered outsourcing for this, but the concerns around security and privacy made us keep all of our hosting in-house. We changed many of our manual processes to incorporate much more automated and integrated ones. We opted to keep our remote workforce for the NoN list as our field offices needed to have first-hand insight into how children were acting. The transmission method was changed as we started using a CRM solution to manage this, so, no more hard-copies of field reports. All updates were handled through our CRM software.

Me: Interesting. If I may ask, who did you choose for your CRM?

Santa: Sorry, I’m under a non-disclosure agreement with that. We need to ensure that all of our operations remain as concealed as possible. But I can tell you that it was web-based which enabled our field-offices and remote branches to be much more mobile. In fact, our accuracy and efficiency showed dramatic increases and our operating expenses, specific to our shipping and receiving, dropped. We were still, however, receiving physical letters that needed to be reviewed. For this, we opted for some OCR and cataloging software to increase efficiency. Thus, when it came to the actual data crunching at the end of the year, we were better able to link the NoN database with the Gift Requests database, which resulted in a huge time and cost savings and other unforeseen efficiencies on our part.

Me: Wow, that sounds like a great success story!

Santa: Yes, but it goes on. With success comes failure as well. We found a number of issues after a few years running “digitally.” For one, we just couldn’t scale quickly enough. Also, our energy consumption was much higher than anticipated. We noticed that much of the polar ice cap around our datacenter was starting to melt and that the average temperature around the facility had risen a few degrees which was definitely concerning. We never stopped adding servers and it wasn’t fair to keep acquiring all of those servers from tech-inspired children. Our CapEx was really starting to grow almost exponentially. We only utilized our equipment to capacity toward the end of the year and then, after that, our utilization dropped dramatically. This wasn’t ideal. AND, Mrs. Claus was saying that our margins were shrinking dramatically. We obviously didn’t want to reduce the quality of the toys we produced so a year ago, we undertook yet another strategic technology change.

Me: Oh? And what was that?

Santa: We started migrating our business over to Cloud Computing and what a difference that made! First, we were lucky enough to be allowed in on a private beta of a Cloud Computing Infrastructure provider. What an amazing technology! Not only were we able to deploy a complete, load-balanced scalable infrastructure, but we were also able to control our costs dramatically. I even worked with Rudolf to develop an interface to the Cloud provider’s API. This interface monitored the influx of NoN reports, the number of days until Christmas and Gift Request volume and it programmatically provisioned new servers ahead of the anticipated demand. It even automatically scales back after the holiday season.

Me: Sounds simply like the ideal solution. Can you tell me more about it and who they are?

Santa: Again, I’m under an NDA, as well as part of another private partner program which gives me some enhanced functionality. But let me tell you this, they offer Windows Server 2003/2008, Linux, free Load Balancing, Cloud Storage, a web GUI, and free support and inbound bandwidth. The free inbound bandwidth is particularly nice since we have our entire field offices transmitting data regularly inbound to corporate.

Me: Hmm. That provider sounds REALLY familiar!

Santa: Ho ho ho. Let me tell you. Just being able to dynamically scale and only be billed for what I use is fantastic, and their Cloud Storage is perfect for all of those scanned letters. When it comes to the December analysis, we just spin up a series of Database servers and do the data crunching. It used to take us weeks to do the same amount of work which we can now do in a mater of days. Not only that, our carbon footprint has been dramatically reduced. In this particular instance, outsourcing made the most sense to us. Many Clouds are built using some sort of virtualization or hypervisor technology which means that one larger server takes the place of multiple older ones. Power consumption is reduced (we used to have hundreds of unused servers sitting around doing nothing during the off season). Our actual RAM/CPU/Drive utilization on those older bare-metal servers was around 10-15%. Now we have amazing efficiencies using the Cloud. I must say, Mrs. Claus is very happy…she even gives me extra cookies…her cookie budget has increased due to the reduction of our CapEx.

Me: Well it seems like you have come a long way. Congratulations! What do you plan on doing with your new free time and money savings?

Santa: I plan on buying a nice little bungalow on a very sunny island and take Mrs. Claus there for some rest and relaxation. Oh, but it must have internet access…the nice thing about my Cloud Computing solution is that I can control my infrastructure from anywhere via a web browser.

Me: Wow, that’s great. Lucky her! Any last remarks you want to make?

Santa: Just one, all of you non-Cloud-enabled companies and Enterprises out there, I’m setting a “naughty” flag next to your entry. You have no excuse! Take it from me, the CEO of the most efficient and on-time Enterprise on the planet. The Cloud is the way to go!

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So there you have it, straight from the mouth of the jolly, white-bearded CEO of The North Pole Corp. Need I say more? Happy Holidays from us at GoGrid!

Many of you have been asking about when the next release of GoGrid will be and what new features it will have. Trust me, we have been just dying to get this exciting release out, so much so that I tried to extract some details from the development team back in September. Well that day has arrived and you can now unwrap your holiday gift early!

Some highlights of what is included in this release:

Cloud Storage v0.7

GoGrid Cloud Storage is an instantly scalable and reliable file-level storage service for Windows and Linux servers running in the GoGrid Cloud. If you want to place it within the Cloud Pyramid, it would be considered a Cloud Extender which means that it works in conjunction with another Cloud Service (specifically, GoGrid Server Clouds):

GoGrid Windows & Linux cloud servers are able to mount GoGrid Cloud Storage using a secure private network and common transfer protocols such as SCP, FTP, SAMBA/CIFS and RSYNC to move data back and forth from Cloud Storage. The Cloud Storage service is dynamically scalable and charged on a pay-as-you-use basis.

Pricing is as follows:

• Initial 10 GB Cloud Storage is FREE
• Additional storage is $0.15/GB per month. For example, if you use an additional 100 GB’s of storage, the cost would be $15/month, giving you 110 GB of storage.
• Zero set-up fee
• Zero long-term commitment
• You are billed for your peak usage during any particular month. For example if you spike to 110 GB during a month and then scale back to 60 GB, you are charged for the peak of 100GB (or $15)
• Since Cloud Storage is attached to your private network, there is no charge for data transfer back and forth between is and your GoGrid Cloud Servers

Features include:

• 10 GB FREE Cloud Storage
• FREE data transfer to and from your GoGrid Cloud servers and GoGrid Cloud Storage
• Can be used as a “file level backup” (note: there are no tools to automate this backup; you must provide your own solution)
• Servers access Cloud Storage using transfer protocols like SCP, FTP, SAMBA/CIFS and RSYNC
• GoGrid Windows and Linux Cloud servers can share the same storage quota
• On-the-fly provisioning which means instant scalability
• Storage utilization graphs available within the GoGrid UI (see screenshots in the section below)

Some Important Things To Know:

• Cloud Storage cannot be deleted via the user interface (the way you can with other GoGrid objects). In order to not incur Cloud Storage charges, you must bring your storage usage below the 10 GB threshold.
• Setting up GoGrid Cloud Storage is a 3-step process: 1) Create within the GoGrid web portal, 2) Connect each of your servers to your Private Network and 3) Mount the storage on each of your Cloud Servers
• With the 0.7 release, you cannot use the API to upload/download using web services (PUTS, GETS, LIST, Deletes). You will be able to do this in the 1.0 release coming soon.
• You can only create one GoGrid Cloud Storage device per GoGrid Account
• Username and Password are automatically created for accessing your Cloud Storage allotment and is presented in the Passwords section of the GoGrid portal. Note: username and password cannot be changed or deleted
• You cannot RDC or SSH directly into Cloud Storage
• Your GoGrid Storage Quota will automatically adjust in 100 GB blocks. When you hit an 80% utilization on your current quota, your account will automatically increase by 100 GB. You are, however, only billed for what you actively use within your Storage.
• Cloud Storage is in addition to the persistent storage already available on each GoGrid Cloud Server

How-To documentation is available on the GoGrid Wiki. Specifically:

• Cloud Storage Overview and Instructions
• Configuring CentOS Servers to Access Cloud Storage
• Configuring RHEL Servers to Access Cloud Storage
• Configuring Windows 2003 Servers to Access Cloud Storage
• Configuring Windows 2008 Servers to Access Cloud Storage
• Cloud Storage Quick Start Guide (9 page Adobe PDF)

New On-hover Implementation

In order to increase the usability of GoGrid’s Award Winning web portal, we have added some “eye candy” that actually provides some useful information. What is an “on-hover?” Essentially, if you hold your mouse over any of the GoGrid objects within the GoGrid web portal, you will see additional details display automatically.

Pictures are worth 1,000 words so:

Cloud Storage shows the hostname of your storage as well as your Quota. As you use more, the status will graphically change and reflect the percentage used.

Cloud Server on-hovers show the name you gave it, the description, how much RAM is allocated, the base image used, the contents of the server image template and the IP address assigned to it.

The Load Balancer on-hover shows the name and description of your load balancer, as well as the type of load balancing and persistence that was configured. Also, the load balancer’s Virtual IP and port and the Real IPs and ports (the IPs of the servers where the balancer is directing traffic) are displayed. This makes for easy and quick information gathering of your load balanced infrastructure.

Those are two pretty great features! Also, look to the next coming days for a NEW Customer Wiki, UPDATED GoGrid Wiki and NEW User Forums! (I will post details on this once it is live and ready to use.)

What do you think? Pretty great release, no? Drop me a note!

A few weeks ago, the folks over at Google, specifically the Google Code division, asked us if we wanted to be a showcase example of Google Web Toolkit (GWT). For those who are not familiar with GWT, it allows you to write your AJAX front-end in the Java programming language which GWT then cross-compiles into optimized JavaScript. The benefits of this are that you when you make changes to your code, once it is complied, it is automatically compatible cross-browsers. If you need more details on GWT, I suggest you read through their Product Overview page.

If you have interacted with the GoGrid web portal, then you have seen our implementation of GWT. It helped us provide an extremely rich experience of server-side code while preserving the speed of client-side code. The end result has been our award-winning interface (winner of LinuxWorld 2008 Best of Show).

The Google Code group interviewed Justin Kitagawa, Technical Product Manager and lead on the GoGrid project about his usage of GWT within the GoGrid framework. Below is the full video, which even shows some of our new GoGrid features.

The video can also be viewed on the Google Code Developer Videos section of their site.

Other links:

• Google Web Toolkit blog post
• Who’s Using Google Web Toolkit?
• Google Code Blog

After about a year of Cloud Computing under my belt, analyzing trends in the market, talking with various professionals as well as customers in the space and watching our own Cloud Computing product, GoGrid, take off as a Cloud Computing leader and innovator, I feel that it is time to make some 2009 predictions for Cloud Computing. Who would have guessed that 2008 would have been “The Year of the Cloud“? I think that 2009 will be “The Year of the CLOUDS” (emphasis on multiple).

A Quick Look Back

If you look back to January 2008, the players in Cloud Computing were few are far between. Obviously, Amazon was breaking ground in establishing themselves as the front-runner at that time. But the term was too new and largely undefined. One of my first blog posts discussed some trends of grid computing, virtualization & virtualized hosting, cloud computing and “green hosting.” For the most part, many of those concepts have not changed. Rather, they have evolved, grown and become more established as leading technologies for the future. As of the writing of that article, GoGrid was still in Private Beta, but with well over 2 years of development getting it ready for prime time.

Virtualization was definitely the buzzword of the beginning of 2008, mainly because it was something that people could fairly easily understand. There were several desktop virtualization products available for users to host different OS’s within their own OS. As Jeff Kaplan predicted, On-Demand services started to really take off for several reasons that are applicable even today (if not more so). His number 1 reason: “Services are Recession Proof” (more about that later in my predictions). While Jeff’s ideas were largely focused on SaaS, there is a lot to be said when you apply them to Cloud Computing in general.

Close to when GoGrid was launched at the end of March 2008, coincidentally(?) the search term “Cloud Computing” (according to Google Insight) really started a strong upward trend within World Wide Searches:

As the US (and World Wide) Economy fell off the cliff, so it seems, did the interest in the Cloud (but that could be due to other worldly distractions). What is actually a bit interesting is that just after the Economy went south, there was a big spike in interest in the Cloud…were people thinking it was recession-proof? Perhaps. (“Cloud Computing” is the blue line below and “US Economy” is appropriately red).

Analysis of the previous year is probably better handled through a separate post. On to some of my 2009 predictions.

Ten Cloud Computing Predictions for 2009

Below is a list of some trends or ideas that I think will surface or grow in 2009. Note, these are not ranked.

1. Clouds Reduce the Effect of the Recession
   The US Government just announced that the US has been in a recession since December 2007. To most people, this is simply stating the obvious. Many in the Cloud Computing field have been touting how moving to the Cloud can lower high Capital Expenditures (CapEx) and shift this to Operating Expenditures (OpEx). Coupling that with a pay-for-what-you-use, use-only-what-you-need model, and Cloud Computing becomes a panacea for extending the runway of your business. Prudent companies are slashing budgets and looking to weather the turbulent market for as long as possible. Those companies that are heavily dependent on advertising will be seeing the effects of cash hording in Q1 and Q2 of 2009. Utility-based spending is a shift in mind-set that could potentially slow the freefall and domino effect we are currently experiencing.
   Recently, I heard about a similar type of idea that could potentially help the sales of hybrid or electric cars. One of the primary barriers that is preventing users from purchasing “green” cars is the high cost associated with a purchase. If the auto industry were to adopt a cell phone business model where you pre-buy your electrical charges and the cost of the car is “subsidized” through the use of recurring and predicable revenue, users might more readily opt for a purchase (at a discounted price). However, several infrastructure changes would be required in order for such a pricing-shift to take place, meaning that charging stations would have to be abundant (and possibly government subsidized as well). In the long term, building the green infrastructure would reduce the US dependence on foreign oil, establish new businesses and competition for charging station infrastructure and move towards bettering the environment. While not exactly the same, similarities can be drawn between this idea and the shift from self-hosted servers to Cloud Infrastructures. CapEx is reduced (e.g., green cars become less expensive to buy/no need to purchase servers that are under-utilized) and costs are moved to OpEx (e.g., charging your car when you need to/paying for only the infrastructure you use).
2. Broader Depth of Clouds
   Cloud Computing providers are leapfrogging each other with new features and offerings. This will continue in 2009. GoGrid was the first to provide a wide assortment of Windows Server Clouds (Windows Server 2003 at launch and later Windows Server 2008). Towards the end of the year, Amazon’s EC2 announced the availability of Windows Server 2003. Microsoft jumped into the ring as a Cloud Platform with Azure. By far, AWS is leading the field by offering a wide array of Cloud services (EC2 – Cloud Infrastructure/ S3, SimpleDB, CloudFront, & SQS – Cloud Extenders). Their footprint continues to deepen as well. But sometimes it’s not bad being #2. GoGrid is a Cloud Infrastructure provider with Cloud Extenders (with GoGrid Cloud Storage) with an emphasis on mirroring standard IT infrastructure services with a focus on ease-of-use through a GUI and programmatic control through an API. Microsoft will be launching their own Cloud Infrastructure in 2009 as well as a variety of Cloud Applications (e.g., Exchange). Google will extend its Cloud Platform with services for storing and serving large files, larger dataset management, pay-for-use enhanced usage and new runtime languages (beyond Python). RackSpace made its move at the end of 2008 with SliceHost and Jungle Disk acquisitions; look to them putting all of the pieces together in 2009. I am seeing the trend towards a broader range of services by several large players. This may confuse the market in the first half of 2009 as IT organizations struggle to figure out the best Cloud solution and how to put it all together as a financially and technologically viable strategy.
3. VC’s, Money & Long Term Viability
   With the credit market increasingly tight, if not non-existent, VC’s, Angel funders and other investors will be faced with some tough decisions. The Dot-Com era allowed for almost anybody to get money for business plans that were essentially vapor-ware. Web 2.0 was slightly better, you had to have a viable business strategy, an established user base, and well on the path to monetization to receive funding. Even with that, there was no guarantee of survival. Many Web 2.0-ers are now shutting shop, despite the fact that they are loved by many. Web 3.0 will present a much steeper hill to climb from a funding perspective. I have spoken to a few investors and VC’s recently (as the Economy imploded) and they still seemed to be somewhat optimistic, but very cautious. But it is their job to keep a positive outlook as they look for the next best thing. With Cloud Computing services gaining even more momentum, this is a good market for funding. But the VC’s and others are really doing their due diligence this time through (are they finally learning from their mistakes over the past 10 years?). Cloud Infrastructure providers will not be the ones receiving the scarce capital, I don’t think. And SaaS providers are a dime a dozen (not in a derogatory way). The SaaS market will continue to grow (not as quickly as previously, I don’t think), in fact, the first Quarter of 2009, we may see a dip as some SaaS organizations actually go under, unfortunately. I think that Cloud Aggregators (those who work to provide integrated Clouds and management services around them) will be ripe for additional funding. For Cloud Platform providers the outlook is a bit trickier as frequently they are dependent on public run-time languages or maintaining proprietary code to keep momentum. I think the smaller providers may see an influx of capital in order to remain competitive, if not survive.
4. Partnerships Galore & Weeding Out of Providers
   Strategic alliances and partnerships are critical to any business success. Not only do you increase exposure to other audiences but also provide more innovative and robust services in the process. GoGrid recently announced partnerships with RightScale, Appistry and GigaSpaces to name a few, with several others coming in 2009 (GoGrid Partners). We will see several new alliances within the Cloud Computing space but this is where my crystal ball is a bit hazy. Cloud Aggregators will be the big movers here and they really have to be. Aggregators need to ensure their own fiscal viability by broadening and diversifying their offerings. If a provider is too attached to EC2, for example, and if Amazon decides to develop functionality that mirrors that of the Aggregator and offer it for free or at a fraction of the cost, the Aggregator will struggle to remain competitive. Aggregators will be core to driving standards and interoperability (#7 below) as they will have much deeper insight into the workings of each of their partners. If they can’t remain ahead of the curve, a big fail whale is on the horizon. Tied to #3 above ($$$), those providers who can’t remain solvent or make smart decision or even monetize in a clean, clear way will go under. Obviously I don’t wish this on any provider, but it is inevitable. I won’t make any predictions but several Cloud providers are for sale or seeking funding to keep their lifeline healthy.
5. Hybrid Solutions
   Not every corporation or business is looking to the Cloud as the next sliced bread. While the Cloud can be the catalyst for a potentially more sound IT and financial strategy, it will not solve every IT challenge. There are some IT infrastructures that must remain in a private datacenter or running on dedicated, bare-metal servers. Database intensive environments may not be conducive to exclusively residing within the Cloud. This year, GoGrid launched the 1.0 version of  Cloud Connect as a way to allow for these types of hybrid (dedicated servers connected to Cloud servers) solutions. Others are calling Hybrid Infrastructure “Cloudbursting.” I expect that some of the strategic partnerships coming in 2009 will include other hybrid solutions of this nature. In fact, they may give way to full mirrored failover or redundancy solutions where traditional infrastructures are mirrored within the Cloud, sharing common datastreams to ensure near-real-time availability of data and services.
6. Web 3.0
   Web 3.0 is upon us. I have long thought that it will be all about Integration and Standards (#7 below). I have written about “mashups” and integrations as being a large component of Web 2.0. Web 3.0 will make these integrations much more seamless and go well beyond that of simple visible shared data applications. What we saw with mashups was essentially proof-of-viability and with some experimentation thrown in. Like a strategic partnership, successful integrations are critical to the furthering the power of the Cloud. In 2009, we will see integrations taking place at a much lower level of IT. Data integrations will remain as they are fairly established. Infrastructure integration and companies offering this as a solution, either as consultation or aggregation of technologies, will drive the innovation of Web 3.0. These integrations will help create new and unique SaaS and even PaaS offerings to the market. The hurdle here will be in the explanation and usability of said solutions.
7. Standards and Interoperability
   While Cloud Computing seemed like the New World in 2007 and the Wild West in 2008, it has now been colonized and settlements established. 2009 will be that of Civil Engineering. The development of standards and interoperability between the varying levels of Clouds is inevitable. It is also tied directly to the needed adoption by the Enterprise. Without clearly defined standards, best practices and even open interoperability, further adoption of the Cloud will slowed dramatically. Just as Phone Number Portability was an important factor in reforming the telcos during the 1990′s and early 2000′s, I believe that Cloud portability (enabled only through guaranteed standards and interoperability) will be a movement in mid to late 2009. Everyone has “agreed to agree,” and now are making inroads towards standards, a reality. It will be important that the big players in the space (e.g., Amazon, Microsoft, Google) become involved. IBM has tossed their hat into the Cloud ring by announcing a Cloud Computing Certification called “Resilient Cloud Validation” (but only if they collaborate with IBM). Without these big players’ participation, there will be 2 types of clouds (standard and non-standard) and/or companies that provide filters or converters to allow for Cloud Portability.
8. Staggered Growth within the Cloud
   I will go out on a limb here as say that there will be tremendous growth within the Cloud. But that is an easy prediction to make. The Cloud encompasses so much that it would be difficult to really see a stagnation or shrinkage. SaaS will expand (perhaps not as rapidly as previously) and offerings by other layers within the Cloud Pyramid will deepen and broaden. Because of the complexity of building up Cloud Infrastructures (from a provider perspective), the Infrastructure layer will take a less steep growth curve as compared to Platform Clouds and Application Clouds will beat the previous two layers out as well. Cloud Aggregators will come and go, and Cloud Extenders will evolve and become more intertwined with other Cloud layers. 2009 will also see the increased visibility of Private Clouds, especially within the Enterprise, until standards and security concerns are met within Public clouds.
9. Technology Advances at the Cloud Molecular Level
   There is probably a new layer to the Cloud Pyramid that needs to be added, one that resides at the “molecular” level. Chip makers such as Intel, are making plans on enabling Cloud-optimized CPU and other types of chips to allow for a more unique control of built-in switches. They are extremely interested in many of the open and proprietary virtualization technologies out there (Xen, VMware, Virtual Iron, etc.) and are strategizing on how to make their chipsets more compatible and efficient for use in the Cloud. Obviously, their vision is to have all Cloud infrastructures running with “Intel Inside” stamped on them. Many Cloud Computing providers, including GoGrid, already hook into chip-level switches and controls to make better use of the processors. Dell, HP and IBM will most certainly release servers specifically designed and configured for running optimized Clouds. Since all Clouds are powered by physical hardware and as advances are made further propelling Moore’s Law into the stratosphere, Clouds will become more powerful and able to take the place of traditional servers even more readily.
10. Larger Adoption
    If one factors in many if not all of the items mentioned previously, the obvious conclusion is that Cloud adoption will be significant in 2009. The Enterprise will move beyond simply testing the waters and just using the Cloud for project work. Private Clouds will help with their acceptance and the undeniable call for cost-savings through reduced CapEx will be too loud to be ignored. My gut also tells me that Government will play a much larger role as well. In 2008 I spoke with a person from the French government whose mission it was to bring the Cloud to their government infrastructure. This is only the tip of the iceberg. With the 2008 US Election, Barack Obama proved how critical an online presence is to furthering the concept of “change.” The Obama-Biden Technology Agenda points to the obvious importance of Technology, especially with the appointment of a Chief Technology Officer for the US Government.  And, as always, Web 3.0 and Startups will remain on the bleeding edge of hosting technology yet conserving cash for a sunnier day (ok, it can be a bit “cloudy”).

It’s always fun trying to gaze into a crystal ball and predict the future. When peering into it for perspective and predictions on Cloud Computing, a “cloudy” crystal ball is a bit of an oxymoron. Cloud Computing is no longer a just a “newfangled” movement but rather an established IT and business strategy that will be critical to all companies regardless of business models. What are your predictions? Leave a comment!