Welcome!

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

Related Topics: Mobile IoT, Microsoft Cloud, @CloudExpo

Mobile IoT: Article

Microsoft, Amazon, Google, VMware - Cloud Computing Is an Arena for Big Players

I don’t expect small players to stay competitive for long in this game

Joannès Vermorel's Blog

Considering that the price tag for state-of-the art data centers is now reaching $500M, cloud computing is an arena for big players. I don’t expect small players to stay competitive for long in this game. Cloud frameworks are very diverse, and switching from one cloud to another is going to involve massive changes at best and complete rewrite at worst.

My own personal definition of cloud computing is a hosting provider that delivers automated and near real time arbitrary large allocation of computing resources such as CPU, memory, storage and bandwidth.

For companies such as Lokad, I believe that cloud computing will shape many aspects of the software business in the next decade.

Obviously, all cloud computing providers have limits on the amount of resources that one can get allocated, but I want to emphasize that, for the end-user, the cloud is expected to be so large that the limitation is rather the cost of resource allocation, as opposed to hitting technical obstacles such as the need to perform a two-weeks upgrade from one hosting solution to another.

Big players arena

Considering that the ticket for state-of-the art data centers is now reaching $500M, cloud computing is an arena for big players. I don’t expect small players to stay competitive for long in this game.

The current players are

  • Amazon Web Services, probably the first production-ready cloud offer on the market.
  • Google App Engine, a Python cloudy framework by Google.
  • Windows Azure just unveiled by Microsoft a few weeks ago.
  • VMWare specialist of virtualization who unveiled their Cloud vService last September.
  • SalesForces and their Platform as a Service offering. Definitively cloud computing, but mostly restricted to B2B apps oriented toward CRM.

Then, I expect a couple of companies to enter the cloud computing market within the next three years (just wild guesses, I have no insider’s info on those companies).

  • Sun might go for a Java-oriented cloud computing framework, much like Windows Azure, leveraging their VirtualBox product.
  • Yahoo will probably release something based on Hadoop because they have publicly expressed a lot of interest in this area.

There will most probably be a myriad of small players providing tools and utilities built on top of those clouds, but I rather not expect small or medium companies to succeed at gaining momentum with their own grid.

In particular, it’s unclear for me if open-source is going to play any significant role - at the infrastructure level - in the future of cloud computing. Although open-source will present at the application level.

Indeed, open-source is virtually nonexistent in areas such as web search engines (yes, I am aware of Lucene, but it’s very far from being significant on this market). I am expecting a similar situation for the cloud market.

Benefits

Some people are about privacy, security and reliability issues when opting for a cloud provider. My personal opinion on that is that those points are probably among strongest benefits of the cloud.

Indeed, only those who have never managed loads of applications may believe that homemade IT infrastructure management efficiently address privacy, security and reliability concerns. In my experience, achieving a good level of security and reliability is hard for IT-oriented medium-sized companies and much harder for large non-IT-oriented companies.

Also, I am pretty sure that those concerns are among top priorities for big cloud players. A no-name small cloud hosting company can afford a data leak, but for a Google-sized company, the damage caused by such an accident is immense. As a result, the most rational option consists in investing massive amount of efforts to prevent those accidents.

Basically, I think that clouds can significantly reduce the need for system administrators and infrastructure managers by providing a secure and reliable environment where getting security patches and fighting botnets is part of the service.

Drawback: re-design for the cloud

The largest drawback that I can see is the amount of work needed to migrate applications toward clouds. Indeed, cloud hosting is a very different beast compared to regular hosting.

  • Scalability only applies with proper application design - which varies from one cloud to another.
  • Data access latency is large: you need data caching everywhere.
  • ACID properties of your storage are loose at best.

Thus, I expect that the strongest hindering factor for cloud adoption will be the technical challenges caused by the cloud itself.

If you don’t need scalability, hosting on expensive-but-reliable dedicated servers is still the fastest way to bring a software product to the market. Then, if you have happen to have massive computing needs, then you probably have massive sales as well, and well, sales fixes everything.

Computing resources being commoditized? Not so sure.

With all those emerging clouds, will we see a commoditization of the computing resources? I don’t expect it.

Actually, cloud frameworks are very diverse, and switching from one cloud to another is going to involve massive changes at best and complete rewrite at worst. Let’s see

  • Amazon provides on-demand instantiation of real physical servers running either Linux or Windows. No virtualization involved. The code can be natively executed on top of custom OS. Scalability is achieved through programmatic computing node instantiation.
  • Google App Engine provides a Python-only (*) web app framework. Each web request gets treated independently, and scalability is a given. The code is executed in a sandboxed virtual environment. The OS is mostly irrelevant.
  • Windows Azure offers a .NET execution environment associated with IIS. The code is executed in a sandboxed virtual environment on top of a virtualized OS. Scalability is achieved by having working instances “sleeping” and waiting for the surge of incoming work.
  • VMWare takes any OS image and bring it to the cloud. Scalability is limited but other benefits apply.
  • SalesForce provides a specific framework oriented toward enterprise applications.

(*) I guess that Google will probably release a reduced Java framework at some point, much like Android.

Thus, for the next couple of years, choosing a cloud hosting provide would most probably mean a significant vendor lock-in. One more reason not to go for small players.

Since cloud computing will be an emerging market for at least 5 years. YAWG - Yet Another Wild Guess: 18 months to get the cloud offers out of their beta statuses, 18 months to train hordes of developers against those new frameworks, 18 months to write or migrate apps. During this time, I expect aggressive pricing from all actors, and little or no abuse of the “lock-in” power.

Then, when the market matures, I guess that 3rd party providers will provide tools to ease, if not to automate, the migration from one cloud to another much like the Java-.NET conversion tools.

More Stories By Joannès Vermorel

Joannès Vermorel is Founder of Lokad. He is passionate about grid computing and statistical learning, and also teaches a software engineering course at the Ecole normale supérieure in Paris, France.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
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, will discuss 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’ll go over some of the best practices for structured team migrat...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
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, will discuss how they bu...
SYS-CON Events announced today that Dasher Technologies 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. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, 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. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Datera 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. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that NetApp has been named “Bronze 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. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
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 ...