Welcome!

@CloudExpo Authors: Yeshim Deniz, Pat Romanski, Liz McMillan, Elizabeth White, Charles Araujo

Related Topics: @CloudExpo

@CloudExpo: Article

Cloud Computing - The Jargon is Back!

The ASP is dead, long live the Cloud!

Brian de Haaff's Blog

Cloud computing, utility computing, SaaS, on-demand, grid computing, etc. The jargon is back. The acronyms, the vendor jockeying, the funny names, and yes, the confusion. But does it really matter any more than it did 10 years ago when you couldn’t grab a bite to eat at the local Silicon Valley deli without hearing those three special letters – ASP – that were at the forefront of our collective brain when we talked about applications running in the cloud. (They usually came right after the other three letters: IPO, but let’s not go there.)

I remember well because I was in the vortex of the last cloud revolution. In fact, for better or worse I coined the category Application Infrastructure Provider (AIP) in 1999 while working at Concentric Network, responsible for marketing for the hosting product line and data center services. We were responding to perceived customer demand and media attention for ASPs (Application Service Providers). We had bandwidth, we had space, and we had servers—put it together and you get Infrastructure and the name. We productized the service and Network World named it Product of the Year. It was not our best seller.

So what’s changed in 10 years? Will the outcome be any different when we talk about businesses running software (or storing data) offsite and accessing it via Web browsers? Will they actually do it en masse? The pundits say, “Yes!”, but will it really happen this time?

I do think we’ll succeed this time because things are different.

There’s still lots of hype—note a recent June Deutsche Bank report that states “We expect SaaS revenues to grow to $56.5B in 2015 (nearly 70% of the overall market in just 8 years time).” But, I think that things have changed for cloud-based on-demand services in five major ways that will alter our collective computing future:

1. ASPs (and AIPs) were single tenant driven, which means that you were responsible for piecing together your own infrastructure (whether you provisioned your own or rented it from the provider) and also for creating or buying the software that ran on it. This was akin to moving your own data center to a third party facility. You still had almost all of the same IT headaches. Today, cloud-based, on-demand services are multi-tenant. Vendors pull together infrastructure and resources, and automatically allocate and balance them so many users can simultaneously use them.

2. Because the platforms are multi-tenant, the vendors can cost-effectively take on more responsibility for the underlying technology. Businesses now take advantage of the scale and efficiency that comes through the vendor’s ability to serve multiple companies on the same computing platforms. This is a fundamental shift because businesses are no longer responsible for maintaining the infrastructure themselves, no matter what type of on-demand service they choose.

3. Salesforce.com. Enough said.

4. Ubiquitous broadband. Enough said.

5. Every established software company is making significant investments in moving their offerings to an on-demand, pay-as-you-go business model (not to mention the heavy hitters like Amazon and Google that are already offering their own on-demand services).

In addition, to the fundamental changes that have taken place, the benefits of on-demand services for businesses and their end users are clearer. The advantages include instant access to the software that businesses need to improve their operations, cost efficiency of pooling their software and computing needs with other companies, reduced risk of failed software implementations and tapping strained internal IT resources, and flexibility in terms of being able to change providers. This all comes with the tradeoff of relinquishing some control, but it appears to be well worth it to most companies.

So, it appears that on-demand services are really happening this time, so let’s try to agree on a framework for talking about the various offerings. And let’s start with a diagram to simplify the discussion:

When you boil it down, on-demand services are all cloud computing based. And there are really only three types of them:

1. Software-as-a-service (SaaS) is really where this wave started and it makes up the largest bucket. These vendors typically provide a single application or a cluster of small applications targeted at a general business task (e.g. CRM, billing, HR, etc.). Examples include Salesforce.com for front-office activity, Netsuite for back-office activity, and Paglo to manage IT and operations. They are “application specific” meaning that the business uses the functionality that the vendor provides rather than building their own. The vendor builds out and manages both the infrastructure and the software and the customer only needs to input or manage their data in the applications.

2. Platform-as-a-service (PaaS) offerings get slightly more complicated. Here the vendor provides the infrastructure, software stack, and typically a data source. This is an emerging cross-over area that successful SaaS and online vendors are now promoting. This is often where the SaaS provider opens up their platform to third party applications (whether built by a business to serve its own needs or developers to sell to the businesses that are already using the core SaaS offering). So while this expands the application functionality of the SaaS provider, the applications are still related to the core offering. For example, Salesforce.com’s Force platform is designed mostly for customer-relationship oriented applications that leverage the data in a Salesforce.com customer’s account and Facebook’s F8 platform is ideally suited for additional applications that tie to the user’s social network. We would also put Google’s App Engine into this category (despite the fact that they do not provide a data feed).

3. Pure cloud computing platforms provide the server infrastructure and the business is responsible for their own software stack and ultimately the application that runs on it. The business can run just about any software that it wants as they are “application agnostic.” The main force (and a good example) in this market is Amazon Web Services

Here’s one way to compare the application flexibility and level of responsibility that the business takes on with each option:

It’s true, ASPs are dead, but they set us on the path to get on-demand services right. Advancements in technology and service delivery have improved the value for businesses to adopt these services. Now, let’s just start being clearer about what’s happening, so businesses can best choose the services that will help them succeed.

We are well on our way – long live the cloud!


[This article appeared originally here and is republished in full with the kind permission of the author.]

 

More Stories By Brian de Haaff

Brian de Haaff is the CEO of Paglo, the world's first search engine for IT. The company helps make IT administrators heroes by enabling them to discover all of their IT data and quickly solve computer, network, and user problems. The service is offered as SaaS and enables users to benefit from the community and the contributions of their peers through Paglo share-its.

Comments (3) View Comments

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.


Most Recent Comments
The Subversive 07/16/08 01:30:59 PM EDT

Profitable 'cloud computing' companies – Salesforce.com (subscription), Digg (text based payloads), Google (text based payload). Unprofitable cloud computing companies – Gmail (text, pictures, video), YouTube (video), Flickr (photos), Hotmail (text, pictures, video), Plaxo (contacts). You get the picture. While always-available consumer and corporate data and content services are incredibly popular for a range of scenarios, they're incredibly expensive to host and maintain.

In the end very few companies will be able to do this profitably, because it will be a tripartite equation: audience size, data payload size and egress/ingress rates and payment model. Anyone who fails to balance the three in a sort of perfect triple point will fail at it.

Morph eXchange 07/16/08 01:19:33 PM EDT

We are a SaaS enabler based in Asia, initially harvesting on the power of EC2.

Jargoneer 07/16/08 01:09:48 PM EDT

"Persistence as a Service" is another new one - anyone heard that one yet?

@CloudExpo Stories
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
"We view the cloud not as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo (http://www.CloudComputingExpo.com), held June 7-9 at the Javits Center in New York City, NY.
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...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
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 ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.