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
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
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...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
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 ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
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, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.