Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Recurring Revenue, @CloudExpo

Recurring Revenue: Blog Post

Cloud Opportunity Missed?

The Cars.gov web site is the biggest 'clunker' in "Cash for Clunkers"

I am guessing that Vivek Kundra, the US Government's new CIO and a strong advocate of Cloud Computing, is sending Barak Obama and Ray LaHood, the US Transportation Secretary, an email saying "I told ya so".

Why? The "Cash for Clunkers" auto stimulus program's web site clunked due to the popularity of the program.

First of all, what is Cash for Clunkers? A US Government program created to stimulate the sales of newer automobiles which also enabled the removal of older, less efficient (lower MPG), higher polluting cars from US roadways. The program will end in less than 24 hours and will be feather in the President's cap. As many as 475K new vehicles were sold under this program. The results so far - the auto industry is pleased with higher sales and reduced inventories; the dealers are mostly pleased with increased sales albeit many are waiting for their government pay backs; the consumers are pleased because of a subsidy on the auto sale. The only people that are not pleased are the administrators of "Cash for Clunkers" and the dealers. Why? Too much demand which exposed inefficiencies.

It appears that the voucher system set up to handle dealer claims was crushed by unusual high demand.  Now "unusual high demand" to me is synonymous with cloud computing. My own definition of cloud computing speaks directly to that point.

"A new way to deploy or virtualize IT using the internet as a method to quickly borrow/use resources (compute, storage, infrastructure, applications) and either keep those resources for any given amount of time or give those resources back after use."

So what happened? The Associated Press (AP) wrote a story about the program and pointed to the government's own back end processes handling the claims from dealers.

"We were not anticipating the number of transactions would be anywhere near what it is at this point," said Daniel Smith, the NHTSA associate administrator overseeing the program in a recent information session with dealers

The government's computer system was also overwhelmed. Some dealers brought staff in after midnight to try to scan and send documents, only to have the online system crash. Transportation officials eventually improved the computer system to smooth the claims process.

The Government highlighted 3 key assumptions that created the problem.

The high popularity - the auto industry forecasted that the program wouldn't have a major effect on sales. Oops! The auto industry should know their business and consumers a bit better. But if that were true, they probably wouldn't be coming in and out of bankruptcy (apologies in advance to Ford and several others).

The dealer sales people - the sales people ‘pre-sold' the program to customers. Whenever the dealers were clued into the Cash for Clunkers program, the sales people found creative ways to take advantage before the actual start date. This caused the initial rush to the Cash for Clunkers web site and crashed the system.

The government entity that handled the claims - this group was rushed to put the entire program together. The AP suggested that Transportation Department officials were presented with just 30 days to get the program up and running. The time crunch probably meant less automation and more human "eyes" processing claims (as evidence, the government added 700 more human claims processors to the original 300 midway through the program).

For any project, the project leader has the typical resource dilemma - a balance of feature set, time, and cost. In this particular case, my guess is that cost was mostly fixed so the tradeoffs are time and feature set... Adding more time may allow you to improve the feature set but the start date was set - so the ultimate tradeoff is feature set. When you don't have additional time or resources, you end up cutting the feature set. My guess is that the front-end web site got the bulk of the attention while the back-end processing got little (the forecast was ‘x' and ‘x' could be covered by 300 claims processors).

Whatever computer systems were scoped for the project, the project team should have considered Cloud Computing as a component to gear up or throttle down the processing needs. That is a bit obvious now (think about the phrase "Monday morning or armchair quarterback") and I could never comprehend the internal hurdles to get this project done. Going forward, I assume that Cloud Computing will be considered.

Preparing and successfully implementing this project with a cloud component could have freed up capital to focus on the automation of claims processing. For example, greatly reducing the capital expense by not buying hundreds of servers and implementing cloud computing could have allowed the project managers to focus on the tougher portion of the program - automating the claims process and reducing the human intervention required to process and complete the claims. In other words, the Cloud implementation could help with the classic cost/time/feature set dilemma - shift the costs previously allocated for capital equipment (physical servers) and shift that cost to programming a better feature set. That is the power of Cloud Computing.

"The program is choking on its own success," said Connecticut Attorney General Richard Blumenthal, who sent a letter Thursday to (Ray) LaHood (US Transportation Secretary) asking it to reform Cash for Clunkers. "It expanded exponentially without sufficient basic preparation."

While Richard Blumenthal's comment above is obvious and lacks a resolution, I imagine Ray LaHood forwarding Richard's email to Vivek Kundra with an email conversation like this:

To:  Vivek Kundra, Federal CIO

From: Ray LaHood, US Transportation Secretary

Subject: HELP - the Cash for Clunkers web processing is a clunker!

Vivek,

I am getting some heat from folks on Cash for Clunkers. I heard you are an expert in something called Cloud Computing. Someone told me that it might have helped us on the Cash for Clunkers web site. I am not sure what Cloud Computing is, but if it prevented us from being embarrassed, I am all for it.

Best regards,

Ray

To which Vivek replies,

Rich,

Sorry to hear about the trouble. I think what you and the Connecticut AG experienced will be likely be a typical IT fiasco based on ‘old school' thinking. We have outlined a way the government can be efficient (yes, oxymoron I know) via Cloud Computing. If you drink the cloud computing kool-aid with me, we will be able to have better options in the future.

Best regards,

Vivek

P.S. Just to let you know, Monday night is when Cash for Clunkers ends (8:00 EST). It will be the busiest time and the web site will probably crash again. Use your political influence to smooth things over. I have an RFQ Document that has an embedded strategy on how we will conquer projects with Cloud Computing in the future. Our Cloud Computing initiative will add a ton of credibility to future programs.

I wish I could see those see those emails!

More Stories By Rich Bruklis

A 20 year veteran of the storage industry, Rich has been a business leader in product marketing. He has seen the industry change from backup on 5.25" floppies to 10,000 cartridge tape libraries with every tape "standard" in between. Rich has supported 5.25" 30MB hard drives and launched disk arrays with hundreds of drives. Most recently, Rich has focused on business continuity and disaster recovery.

While the hardware industry continues to experience BBFC (Bigger, Better, Faster, Cheaper), there is a cloud on the horizon that is about to disrupt that trend. Cloud Computing will fundamentally change the IT world much like the network changed client-server computing.

@ThingsExpo Stories
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning 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 busin...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.
SYS-CON Events announced today that Nirmata will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nirmata provides a comprehensive platform, for deploying, operating, and optimizing containerized applications across clouds, powered by Kubernetes. Nirmata empowers enterprise DevOps teams by fully automating the complex operations and management of application containers and its underlying ...
SYS-CON Events announced today that Opsani to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. Opsani is creating the next generation of automated continuous deployment tools designed specifically for containers. How is continuous deployment different from continuous integration and continuous delivery? CI/CD tools provide build and test. Continuous Deployment is the means by which...