Appirio

Thursday, January 15, 2009

2009 Prediction - Rise and Fall of the Private Cloud

#6 in our series of 2009 predictions

2009 Prediction

Here’s the rub: Private clouds are just an expensive data center with a fancy name. We predict that 2009 will represent the rise and fall of this over-hyped concept. Of course, virtualization, service-oriented architectures, and open standards are all great things for every company operating a data center to consider. But all this talk about “private clouds” is a distraction from the real news: the vast majority of companies shouldn’t need to worry about operating any sort of data center anymore, cloud-like or not.

• Private clouds are sub-scale: There’s a reason why most innovative cloud computing providers have their roots in powering consumer web technology—that’s where the numbers are. Very few corporate data centers will see anything close to the type of volume seen by these vendors. And volume drives cost—the world has yet to see a truly “at scale” data center.
  
• You can’t teach an old dog new tricks: What do you get when you move legacy applications as-is to a new and improved data center? Marginal improvements on your legacy applications. There’s only so much you can achieve without truly re-platforming your applications to a cloud infrastructure… you can’t teach an old dog new tricks. Now that’s not entirely fair…. You can certainly teach an old dog to be better behaved. But it’s still an old dog.
  
• On-premise does not equal secure: the biggest driver towards private clouds has been fear, uncertainty, and doubt about security. For many, it just feels more secure to have your data in a data center that you control. But is it? Unless your company spends more money and energy thinking about security than Amazon, Google, and Salesforce, the answer is probably “no.” (Read Craig Balding walk through “7 Technical Security Benefits of Cloud Computing”)
  
• There’s no secret sauce: There’s no simple set of tricks that an operator of a data center can borrow from Amazon or Google. These companies make their living operating the world’s largest data centers. They are constantly optimizing how they operate based on real-time performance feedback from millions of transactions. (check out this presentation from Jeff Barr and Peter Coffee at the Architecture and Integration Summit). Can other operators of data centers learn something from this experience? Of course. But the rate of innovation will never be the same—private data centers will always be many, many steps behind the cloud.
  

There’s also something very suspicious in all this discussion of private clouds…. private clouds are advocated mainly by companies who make their money from selling or operating data centers, and risk losing their shirts as real cloud computing drives more and more computing onto shared infrastructure. I understand why these companies are reluctant to embrace true cloud computing: Imagine being the junior partner in IBM Global Services pitching a client to develop an application on Amazon, Google, or Salesforce. Not only are you taking money out of the pocket of your colleagues in hardware and software….. you are also taking money out of the pocket of your colleagues in professional services, since integration and app development are so much easier using on-demand platforms.

• Cloud Providers: This is an easy one… companies that plan on being in the business of providing cloud computing capabilities to others need to think about how to effective provide their own cloud. But we’d argue that very few companies actually need to be in this business (e.g., we believe most on-demand BI vendors should be running on public cloud infrastructure).
  
• Highly regulated industries: Government regulation will always lag behind commercial application of technology. There will inevitably be instances where nervous politicians or policy makers write up requirements that can only be met through a private cloud.
  
• Companies in the process of moving to a public cloud: Of course, no company of any significant size can move its IT infrastructure to the cloud all at once. In fact, Appirio specializes in helping companies figure out what the right first step is away from their on-premise infrastructure. For the IT infrastructure that hasn’t yet moved, it definitely makes sense to think about how to use “private cloud” technology. But that means the private cloud is a temporary stop-gap, not the “future of enterprise IT.”
  

Labels: 2009-Predictions, Amazon S3, BI, Cloud Computing, Force.com, Google, IBM, On Demand, PaaS, remove, SaaS

Monday, April 07, 2008

What Do You Get When You Cross Salesforce.com and Amazon S3?

Narinder Singh

You get Appirio Cloud Storage for Salesforce.com, a new SaaS offering from Appirio that taps Amazon S3 to extend the storage capabilities of Salesforce.com. (We toyed with calling it SalAmaForce3 but didn't really see that flying.)

Appirio Cloud Storage [press release] lets Salesforce.com users store more documents and larger size files - such as customer support logs, software patches or video presentations - directly through the Salesforce.com interface, at a fraction of the price of existing storage solutions. The new SaaS offering creates a secure integration with the Amazon.com utility storage service and provides the ability to store documents up to 1GB in size (200x current limits).

Feedback from our beta users shows that is has the potential to reduce existing Salesforce.com storage costs by over 80 percent while enabling them to get more mileage out of their on-demand applications. The service, available in three levels of monthly web-based pricing, can be purchased today on AppExchange or on www.appirio.com.

Connecting the Clouds: A Sign of More to Come

We're excited not only about the service itself, but also what it represents. It shows where the industry as a whole can head - as the platforms mature, there is a substantial opportunity for ISVs to tie together the different clouds and provide offerings that extend and fill in the platforms themselves. In traditional enterprise application integration (EAI), packaged integrations were difficult to commercialize. The permutation of versions and customizations created and "n times n" problem, making it too expensive to create something "packaged" that appealed to more than a very small number of customers. But in the cloud, because SaaS providers commit to stable interfaces - Salesforce has maintained backwards compatability for more than a dozen revisions of its API - "integrating the cloud" can become a new class of solution.

CIOs and companies investigating this type of convergence must pick technologies and partners that "get" the nuances of the different platforms. Each platform has unique capabilities that make it appealing for different audiences and functions. For example, Amazon's Elastic Cloud Computing platform (EC2), which provides enterprises with raw computing power, storage and database capabilities on a per transaction basis is great for developers and IT organizations who need to scale their computing capacity up or down. However, it doesn't provide the sophisticated workflow, logic and presentation layers that Salesforce.com's Force.com platform offers for developing and running custom-built applications. Phil Waineright wrote an excellent piece on ZDNet recently describing the different platforms and how they compare to give a flavor of the different options already out there. In addition, the security, performance and reliability requirements of large enterprises requires ISVs and partners who understand how to pragmatically apply these new innovations.

Today's platforms will continue to evolve, and innovative companies will find new ways to bring them together. Appirio Cloud Storage is only one of the many products that Appirio will be offering in this camp over the coming year. Stay tuned!

Photo credit: MaxChu on Flickr

Labels: Amazon S3, appirio, Elastic Cloud Computing, Force.com, on-demand storage, SaaS integration, salesforce.com