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The Actual Truth About the Economics of Cloud Computing

Thursday, May 26th, 2011 by

Don’t let the media fool you. Which of these actually make cloud computing financially compelling?

  1. Super cheap power, such as hydro-electric
  2. Shipping container datacenters
  3. Massive datacenters
  4. Blade servers
  5. Datacenters with super-efficient cooling
  6. VMware virtualization licenses
  7. Pay-as-you-go pricing
  8. Automation
  9. Shared platforms
  10. Commodity hardware

The answer is NOT “all of the above”! If you said “pay-as-you-go pricing, automation, shared platforms, and commodity hardware” then you win. In fact, these four concepts are so powerful that I believe that they will shrink the entire IT economy. IT shrinking? How could that be possible? Yes, I think that the $3.3 trillion dollar global IT economy could be cut in half. When I’ve made this declaration before I’ve been likened to the commissioner of the US Patent Office who was rumored to have said:

“Everything that can be invented has been invented.”

Charles H. Duell, Commissioner, U.S. patent office, 1899 (attributed)

In truth he didn’t say this. http://en.wikipedia.org/wiki/Charles_H._Duell

But I’m still saying that I think we’re currently seeing the peak of complexity and cost in IT. IT is going to get easier and less expensive from this point forward. There. You have it in writing. (more…) «The Actual Truth About the Economics of Cloud Computing»

Amazon is Amazing! (From the GoGrid CEO)

Monday, April 25th, 2011 by

This blog post is long overdue but the recent events that affected customers using Amazon Web Services sparked an increased priority in my mind. I have long been an advocate of Amazon’s amazing efforts driving cloud computing to fruition. And the current unfortunate events have not changed my attitude towards them. Amazon is amazing!

From_the_CEO_GoGrid_logo_sm

Really amazing! And GoGrid is really thankful.

Thank goodness Werner Vogels keeps getting up on stage with incredible success stories. Werner’s slides featuring Amazon’s growth statistics are so awesome that I bet they make Al Gore jealous. And that isn’t a tongue-in-cheek quip because Al Gore gave birth to the Internet. This isn’t a tongue-in-cheek blog-post. This is a hearty high-five to Amazon from GoGrid. The convenient truth for GoGrid is that when Werner takes the stage, it feels like he’ll need a ladder to show us how incredible the adoption is of AWS.

Can you imagine a world without Amazon? The whole “cloud” revolution probably wouldn’t be happening. SalesForce had been doing their thing for about a decade but it wasn’t until Amazon Web Services geared up that the whole “cloud” thing started cranking.

  • No great brand-name company was going to bring cloud computing to market because they’ve been watching a bookstore eat their lunch now for years and they still haven’t done anything relevant. I’m talking about computing giants like IBM, HP, Dell, and Cisco or telecom service providers like AT&T and Verizon. Sun was gonna do something relevant about 2 years ago but Larry pulled the plug on that. Amazon has declared an entirely new style of computing that will define the future, and the big-names just seem to be watching. Wake up! What is going through your dino-minds? There is a new Sheriff in town. Do you still think that Amazon is just an attempt to sell excess bookstore infrastructure that they didn’t need at Christmas? Amazon-dot-com faced an incredible IT challenge and so they invented an entirely new style of massively multi-tenant, incredibly scalable, programmable, on-demand infrastructure. Smell the Java ©!
  • Countless technology start-ups would never have started. Amazon established an entirely new paradigm that has changed the game for entrepreneurs in several great ways. First of all, Amazon enables bunches of new businesses that simply couldn’t have existed even if they had the capital. The best examples of these are the companies that simply grew too fast to get their needs met without programmable and massively scalable on-demand infrastructure.
  • Amazon has done wonders for the psyche of entrepreneurs. Entrepreneurs feel empowered. There is a new consensus that a company can be started for almost nothing whereas it used to feel like a start-up needed $10,000,000. Entrepreneurs are liberated because they know that they can scale their cost of goods sold with their revenues and that they don’t need any CapEx. Amazon is a bigger friend to tech start-ups than venture capital and has become a comparable engine for growth in our economy.
  • OpenStack wouldn’t exist. OpenStack was invented to compete with Amazon. RackSpace never would have purchased SliceHost and jumped into the cloud game. RackSpace wouldn’t have needed a “cloud” strategy ‘cause their core business was doing great.
  • And last but not least, people wouldn’t care so much about GoGrid. We’re proud to have pioneered cloud computing alongside Amazon, but if we had done it alone it might be comparable to a tree falling in the forest. We had load balanced cloud servers years before Amazon, and load balancing is core to elasticity which is a defining attribute of cloud computing, but not as many people would have noticed. We also were way ahead of Amazon with on-demand Windows servers, real VLANs, dedicated servers, Hosted Private Cloud and bunches of other things but you probably wouldn’t be reading this blog-post if it weren’t for Amazon. We take great pride in having a feature-set that our customers and industry analysts alike consider to be the most comparable to Amazon’s. We’re headquartered in San Francisco and quite good at R&D ourselves and we also are pushing the industry forward. GoGrid got into the game trying to solve a different problem than Amazon, we were trying to automate managed hosting, but we’ve both ended up in nearly the same wonderful place…the cloud!

So thank you Amazon! You’ve done the World a great service!

(more…) «Amazon is Amazing! (From the GoGrid CEO)»