Welcome!

Cloud Expo Authors: Yeshim Deniz, Roger Strukhoff, Elizabeth White, Pat Romanski, Liz McMillan

Related Topics: Cloud Expo, SOA & WOA

Cloud Expo: Blog Post

The PaaS Supply Chain

What kind of supply chain approach will win in PaaS?

In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I usually get to catch up on my sadly neglected reading list. First up on my reading list this year: Clockspeed : Winning Industry Control in the Age of Temporary Advantage by Thomas Fine.

I am sure many of you have either read Clockspeed yourself or heard it mentioned in various circles. I am fast approaching the end, and while the book itself is not new (originally published in 1999), it seems, based on my own impressions and several other notable reviews, that the lessons of this piece are timeless.

I'm not going to do much justice to the book in just a couple of sentences, but for those of you not familiar with this work, here is a bit of background. The main premise put forward by Fine is that any competitive advantage a business holds is temporary. How temporary depends on the clockspeed of the particular industry in which the business competes, and as you might imagine these speeds vary widely across industries. In light of all advantage being temporary, Fine contends that a company's supply chain is the single most important competency it holds.

Fine provides ample reasoning behind his theory that a company's supply chain is their golden nugget. More interestingly, Fine backs his beliefs with concrete case study data from business history. For me, the most interesting case study is that of the IBM personal computer -- I am an IBMer after all. Fine recounts the events that lead up to IBM competing in the personal computer market, and then focuses on IBM's decisions regarding how to compete in that market.

Specifically, he notes IBM's seemingly conscious decision to take a modularized approach to delivering the PC. The supply chain included parts built within IBM, but importantly, not every part came from within IBM. Most notably, IBM chose to go with processors from Intel and operating systems from Microsoft. In choosing this horizontally integrated approach to building the PC, IBM opened the door for a larger number of competitors to enter the market. These competitors came in, built IBM compatible PCs, and eventually eroded IBM's dominance in this market. Why? Fine argues that consumers evolved to care more about what was on the inside of the PC (specifically the Microsoft operating system and Intel processors), and less about who built the box to house these components.

While this is an interesting bit of history, I believe we are coming upon a point of time when this may repeat itself all over again. This time the subject of interest will not be the PC, but instead, PaaS solutions. Last week, I talked about different approaches for delivering PaaS solutions. Looking back at those different models in the context of supply chain management, I suppose I could characterize them as being vertical (depth in deployment/management capabilities), horizontal (breadth in deployment/management capabilities), and hybrid (depth & breadth in deployment/management capabilities).

The question is which of these approaches will be the first winner in the PaaS market? As I said last week, in a perfect world, the hybrid approach would win out, but I believe we are far off from anyone being able to deliver something viable in this mold.  So, will it be horizontally or vertically composed PaaS solutions that become the first dominators?

The story above may seem to argue against the horizontal approach, but the fact is, this is just one anecdote from a book packed with them. Fine is careful to point out that supply chains with a vertical orientation are appropriate in some cases, while in other cases the horizontal approach wins out. Even then, the orientation chosen by the industry is not a decision made once and never revisited. Fine explains that a vertically oriented industry is under constant pressure to reorganize horizontally, while the inverse holds true for horizontally oriented industries.

That said, the PaaS industry has some interesting decisions to make. No one in the industry wants to risk becoming simply ‘the box' that manages the crucial components, nor would they want to deliver a solution lacking critical capability because no one company can develop all capabilities in-house. While the answers here are not easy, the current state of the market seems to be leaning heavily towards a vertical orientation.

Most of the PaaS solutions we see now concentrate on providing operational depth for application platforms at the expense of providing breadth. In my opinion, this seems like the right approach for this largely nascent market. In trying to gain traction and attract a community of users, PaaS solutions need to provide clear and ‘instant' value for those users. It is hard to do this if you cannot narrow in on a specific subset of use cases.

As PaaS works into the mainstream over the coming years, the supply chain approach taken by these solutions providers will be interesting to watch. Will vertical orientation continue to dominate the early PaaS years? Who will be the first leader to shift towards horizontal orientation, and what will the ramifications be? All of these are interesting questions and ones that only time will tell.

More Stories By Dustin Amrhein

Dustin Amrhein joined IBM as a member of the development team for WebSphere Application Server. While in that position, he worked on the development of Web services infrastructure and Web services programming models. In his current role, Dustin is a technical specialist for cloud, mobile, and data grid technology in IBM's WebSphere portfolio. He blogs at http://dustinamrhein.ulitzer.com. You can follow him on Twitter at http://twitter.com/damrhein.

Cloud Expo Latest Stories
Come learn about what you need to consider when moving your data to the cloud. In her session at 15th Cloud Expo, Skyla Loomis, a Program Director of Cloudant Development at Cloudant, will discuss the security, performance, and operational implications of keeping your data on premise, moving it to the cloud, or taking a hybrid approach. She will use real customer examples to illustrate the tradeoffs, key decision points, and how to be successful with a cloud or hybrid cloud solution.
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, will discuss how a user-centric Application Performance Management solution can help inspire your users with every application transaction.
With the explosion of the cloud, more businesses are transitioning to a recurring revenue model to generate reliable sales, grow profits, and open new markets. This opportunity requires businesses to get to market quickly with the pricing and packaging options customers want. In addition, you will want to take advantage of the ensuing tidal wave of data to more effectively upsell, cross-sell and manage your customers. All of this is possible, but only with the right approach. At 15th Cloud Expo, Brendan O'Brien, Co-founder at Aria Systems and the inventor of cloud billing panelists, will lead a panel discussion on what it takes to launch and manage a successful recurring revenue business. The panelists will offer their insights about what each department will need to consider, from financial management to line of business and IT. The panelists will also offer examples from their success in recurring revenue with companies such as Audi, Constant Contact, Experian, Pitney-Bowes, Teleko...
Planning scalable environments isn't terribly difficult, but it does require a change of perspective. In his session at 15th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will broaden your views to think on an Internet scale by dissecting a video publishing application built with The SoftLayer Platform, Message Queuing, Object Storage, and Drupal. By examining a scalable modular application build that can handle unpredictable traffic, attendees will able to grow your development arsenal and pick up a few strategies to apply to your own projects.
The cloud provides an easy onramp to building and deploying Big Data solutions. Transitioning from initial deployment to large-scale, highly performant operations may not be as easy. In his session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, will discuss the benefits, weaknesses, and performance characteristics of public and bare metal cloud deployments that can help you make the right decisions.
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Is your organization struggling to deal with skyrocketing volumes of digital assets? The amount of data is growing exponentially and organizations are having a hard time managing this growth. In his session at 15th Cloud Expo, Amar Kapadia, Senior Director of Open Cloud Strategy at Seagate, will walk through the essential considerations when developing a cloud storage strategy. In this discussion, you will understand the challenges IT is facing, why companies need to move to cloud, and how the right cloud model can help your business economically overcome the data struggle.
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud – not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, will discuss the six key steps to justify and execute your MCA cloud migration.
The 16th International Cloud Expo announces that its Call for Papers is now open. 16th International Cloud Expo, to be held June 9–11, 2015, at the Javits Center in New York City brings together Cloud Computing, APM, APIs, Security, Big Data, Internet of Things, DevOps 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 business opportunity. Submit your speaking proposal today!
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to build reliable, affordable and scalable hybrid cloud storage solutions. Cloudian actively partners with leading cloud computing environments including Amazon Web Services, Citrix Cloud Platform, Apache CloudStack, OpenStack and the vast ecosystem of S3 compatible tools and applications. Cloudian's customers include Vodafone, Nextel, NTT, Nifty, and LunaCloud. The company has additional offices in China and Japan.
SYS-CON Events announced today that TechXtend (formerly Programmer’s Paradise), a leading value-added provider of server and storage virtualization, and r-evolution will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TechXtend (formerly Programmer’s Paradise) is a leading value-added provider of software, systems and solutions for corporations, government organizations, and academic institutions across the United States and Canada. TechXtend is the Exclusive Reseller in the United States for r-evolution