@CloudExpo Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Pat Romanski, Roger Strukhoff

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!


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,


To which Vivek replies,


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,


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.

@CloudExpo Stories
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
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.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO 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 over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
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...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. 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.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve fu...