Welcome!

Cloud Expo Authors: Scott Bampton, Anne Buff, Gilad Parann-Nissany, Elizabeth White, Pat Romanski

Related Topics: Cloud Expo, Java, SOA & WOA, Virtualization, Web 2.0, Apache

Cloud Expo: Blog Feed Post

The Cloud Cost Question and What Doesn't Fit into the Usual Debates

What I suggest is that designing and deploying applications in the Cloud requires an element of faith

The cloud community and anyone with an opinion if not immediately, periodically and frequently gravitate to the question of cost. Is it more? Is it less? Are we being wasteful? Are we being too frugal? Will Google and AWS drive the price of storage to zero? Can we scrunch the market forces of Cloud into a theoretical framework we already understand?

And yet just as cost of computing has been accounted for poorly when assessed in the corporate data center, when similar measures are applied to Cloud, Cloud becomes subject to the same Procrustean Bed as the corporate data center.

Questions that may highlight the incongruity:

Why do compute and datacenter costs increase each year, while AWS continuously lowers costs?

What is omitted when taking the view of application costs through a framework that has never effectively evoked the real costs of the corporate datacenter?

What is the real value of an application to the business?

Why don't corporate data centers employ significant (any?) automation if controlling costs is so critical to the business?

  1. Running applications after they are built is where a lot of recurring cost can be found. These costs include the usual costs as well as surprisingly large support, coordination, and application management costs.
  2. Time to Market aka Speed, and its close cousin, Agility. In economics the concept of time to market is not directly related to Opportunity Cost, and yet given that information technology increasingly determines business success, time to market is what business demands. To an extent the largely manual processes driven by month-long Mobius Strip of email chains punctuated with attached Excel spreadsheets remind me of the QWERTY keyboard layout. These processes are not designed so much for speed and agility as they are to slow the pace of change in service to stability and risk avoidance. The cost of stability at the exclusion of efficiency is a cost to be avoided in the Cloud as well as in the datacenter.
  3. Value of Geographic Diversity. As hurricane Sandy taught those of us in New York, risks are often correlated, or the way I usually phrase it: risks multiply each other. A blackout and a flood are not independent, nor is an earthquake and a Tsunami. I have yet to see a rigorous analysis the of the value of the ability to build and manage applications in North America, APAC, EMEA. And yet most articles I've read do not incorporate the cost of redundant hardware, storage, network required by corporate IT for every application. While I find the outages in AWS unacceptable, even so, taking the time to design and build applications for scale and cross-region availability turns out to be worth the effort. For large and mid-market firms, applications consumed by remote offices generally suffer from poor response times due to latency and other issues. And regional datacenters conform to local standards and result in challenging and costly hardware provisioning and inconsistencies. This provides a compelling reason for these offices to build their own applications and infrastructure. I don't see much about this in the usual cloud cost debate.

What I suggest is that designing and deploying applications in the Cloud either requires an element of faith, or a moment of enlightenment. One could spend the time constructing rigorous models, yet I think the real reason we see the rapid growth in Cloud service providers like AWS is that on some level its obvious that the Cloud model makes economic sense even if it can't be easily explained through cost models that haven't ever effectivel represented where and how money is spent in the traditional datacenter. And over time I see the economic utility of applications built in the Cloud increasing, and I expect the demand curve to follow the utility curve upward and I think that's what we are seeing even this early in the game.

Read the original blog entry...

More Stories By Brian McCallion

Brian McCallion, founder of New York City-based consultancy Bronze Drum focuses on the unique challenges of Public Cloud adoption in the Fortune 500. Forged along the fault line of Corporate IT and line of business meet, Brian successfully delivers successful enterprise public cloud solutions that matter to the business. In 2011, while the Cloud was just a gleam in the eye of most Fortune 500 firms Brian designed and proved the often referenced hybrid cloud architecture that enabled McGraw-Hill Education to scale the web and application layer of its $160M revenue, 2M user higher education platform in Amazon Web Services. Brian recently designed and delivered the JD Power and Associates strategic customer facing Next Generation Content Platform, an Alfresco Content Management solution supported by a substantial data warehouse and data mart running in AWS and a batch job that processes over 500M records daily in RDS Oracle.”

@CloudExpo Stories
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public cloud. Consequently this approach requires risky, deep "surgery" including changes to firewalls, subnets...
Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic connected technologies and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance and higher-quality deployments.
SYS-CON Events announced today that Stratogent 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. Stratogent is a custom managed services organization based in San Mateo, California. We design, implement, and support mission critical infrastructure 24x7 on premises, in datacenters and in the Cloud. Since 2005, we have acted as an extension of internal IT teams, achieving a customer reten...
SYS-CON Events announced today that Harbinger Systems 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. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices--computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will con...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
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 bui...
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 C...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at Internet of @ThingsExpo, Andrew Bolwell, Director of Innovation for HP’s Printing a...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, will discuss how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP ...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
SYS-CON Events announced today that O'Reilly Media has been named “Media 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. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurri...
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, 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. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue bu...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. ...
Seagate has a strong track record of collaborating with others to develop better cloud solutions. The Seagate Cloud Builder Alliance program, for example, leverages the company’s knowledge of storage and cloud-optimized solutions to give cloud service providers the customized, flexible and scalable server and storage solutions to meet the high levels of service their customers demand. Seagate also is a member of the OpenStack Foundation and Open Compute Project to help define and promote open-so...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
What process has your provider undertaken to ensure that the cloud tenant will receive predictable performance and service? What was involved in the planning? Who owns and operates the data center? What technology is being used? How is it being supported? In his session at 14th Cloud Expo, Dave Weisbrot, Cloud Business Manager for QTS, will provide the attendees a look into what it takes to stand up and stand behind a highly available certified cloud IaaS.
I'll be hosting an SAP HANA Cloud webinar at 11am eastern time, Wednesday, October 29. You can sign up now. Featured speakers will be Allan Adler, Managing Partner, Channel Cloud Consulting, and Thorsten Leiduck, VP ISVs & Digital Commerce, SAP. Attendees will learn about • Cloud economics, hybrid cloud strategy, market size and opportunity • Introduction to SAP HANA Cloud Platform and how to: - Build new next-generation applications - Extend on-premise solutions non-disruptively throu...