Archive

Posts Tagged ‘iaas’

5 Strategies for Making Money with the Cloud

January 22, 2013 1 comment

Everybody is hearing Cloud Computing on the television now. Operators will store your contacts in the Cloud. Hosting companies will host your website in the Cloud. Others will store your photos in the Cloud.

However how do you make money with the Cloud?

The first thing is to forget about infrastructure and virtualization. If you are thinking that in 2013, the world needs more IaaS providers then you haven’t seen what is currently on offer (Amazon, Microsoft, Google, Rackspace, Joyent, Verizon/Terramark, IBM, HP, etc.).

So what are alternative strategies:

1) Rocket Internet SaaS Cloning

Your best hope is SaaS and PaaS. The best markets are non-English speaking markets. We have seen an explosion of SaaS in the USA but most have not made it to the rest of the world yet. Only some bigger SaaS solutions (Webex, GoToMeeting, Office 365, etc.)  and PaaS platforms (Salesforce, Workday, etc.) are available outside of the US and the UK. However most SaaS and PaaS solutions are currently still English-only. So the quickest solution to make some money is to just copy, translate and paste some successful English-only SaaS product. If you do not know how to copy dotcoms, take a look at how the Rocket Internet team is doing it. Of course you should always be open for those annoying problems everybody has that could use a new innovative solution and as such create your own SaaS.

2) SaaSification

During the gold rush, be the restaurant, hotel or tool shop. While everybody is looking for the SaaS gold, offer solutions that will save gold diggers time and money. SaaSification allows others to focus on building their SaaS business, not on reinventing for the millionth time a web page, web store, email server, search, CRM, monthly subscription billing, reporting, BI, etc. Instead of a “Use Shopify to create your online store”, it should be “Use <YOUR PRODUCT> to create a SaaS Business”.

3) Mobile & Cloud

Everybody is having, or at least thinking about buying, a Smartphone. However there are very few really good mobile services that fully exploit the Cloud. Yet I can get a shopping list app but most are just glorified to-do lists. None is recommending me where to go and buy based on current promotions and comparison with other buyers. None is helping me find products inside a large supermarket. None is learning from my shopping habits and suggesting items on the list. None is allowing me to take a number at the seafood queue. These are just examples for one mobile + cloud app. Think about any other field and you are sure to find great ideas.

4) Specialized IaaS

I mentioned it before, IaaS is already overcrowded but there is one exception: specialized IaaS. You can focus on specialized hardware, e.g. virtualized GPU, DSP, mobile ARM processors. On network virtualization like SDN and Openflow. Mobile and tablet virtualization. Embedded device virtualization. Machine Learning IaaS. Car Software virtualization.

5) Disruptive Innovations + Cloud

Selling disruptive innovations and offering them as Cloud services. Examples could be 3D printing services, wireless sensor networks / M2M, Big Data, Wearable Tech, Open Source Hardware, etc. The Cloud will lower your costs and give you a global elastically scalable solution.

Data Analytics as a Service

April 18, 2012 2 comments

Every company is using Microsoft Office and especially Excel to do some sort of data analytics. However data volumes have grown exponentially and have outgrown Spreadsheets. You need experts in the business domain, in data analytics, in data migration/extraction/transformation/loading, in server management, etc. to get data analytics done on Big Data scale. This makes it expensive and only usable for the happy few.

Why? There must be easier ways to do it.

I think there are. For those unfamiliar with data analytics but eager to learn, you should take a look at a product called RapidMiner. It is close to amazing how a non-expert is able to use Neural Networks, Decision Trees, Support Vector Machines, Genetic Algorithms, etc. and get meaningful results in minutes. The amazing part is also that RapidMiner is open source hence for usage by 1 analyst it is free.

Rapid-i.com, the company behind RapidMiner, also offers server software to run data analytics remotely. It is here where big data opportunities meet easy data analytics. What if RapidMiner data analytics could be ran on hundreds of servers in parallel and you pay by usage just as you pay for any Cloud compute and storage instances?

RapidMiner as a Service

RapidMiner as a Service, RMaaS, would allow millions of business people to be able to analyse Big Data “without Big Investments”. This type of Data Analytics as a Service would provide any SME with the same data analytics tools as large corporations. Data could come from Amazon S3, Amazon’s DynamoDB, Hosted Hadoops, any webservices, any social network, etc.

Visual as a Service

RapidMiner as a Service is only one of the many domain specific tools that could be offered as a visual drag-and-drop Cloud service. VAS as a Service is another example in which complex telecom assets can be easily combined in a drag-and-drop manner. There are many more. These services will be the real revolution of Cloud Computing since they combine IaaS/PaaS/SaaS into a new generation of solutions that bring large savings for new users and potential large revenues for their providers…

Enough virtualization and IaaS, let’s focus on business users now…

February 24, 2012 Leave a comment

When the first television shows were made they used one camera to record a theatre play. It was only after some time that the real potential of the television became clear.

Virtualization and IaaS is like a one-camera-theatre-play-broadcast

Yes it is great to be able to put software on virtual hardware and as such save some money in hardware costs. But it will not change anybody’s life because renting a virtual server full-time is more expensive than renting a physical hosting server. Companies that focus too much on virtualization and IaaS are not seeing the full potential of Cloud Computing.

Multi-tenancy – a game changer

Cloud Computing without mult-tenant solutions is like a race car without an engine. Making one solution that fits many and installing it once and managing it in one place is the real game changer.

How much time and money is lost in a per customer install? Ordering and installing hardware (4-6 weeks); paying for base software (OS, Cluster, Database, etc.); installing the total software stack; integration with back-up, fault management, single sign-on, performance management, third-party systems, etc.; upgrading and bug fixing; data migrations; etc.

All this can be drastically reduced if the software is installed once and designed for multiple companies and customers.

Best-In-Class Solutions

Best-In-Class solutions used to be those solutions with most features from market-leading companies like SAP, Oracle, Microsoft, etc. However most of these solutions are unnecessarily complex. There is a simple rule to check if you will be overpaying for unnecessary features: Do my business users need training? The more, the worst.

Apple has demonstrated that simplicity and easy-of-use are real demand creators. The real revolution of Cloud Computing is starting now. The real revolution is that business users can ignore the legacy corporate IT systems and use alternative solutions to get things done faster and more efficiently. The Appstore concept of “There is an app for everything”, will now be translated into “There is a SaaS for everything”.

Project managers will stop asking the IT department to install a shared project management server to synchronize their MS-Projects. Instead they will simply use a SaaS solution for project management. The same will be happening for other disciplines.

IT departments can fight this trend, just like they can try to stop people from bringing smartphones and tablets to work. However smart IT departments see a clear opportunity.  Corporate systems are very expensive and often their implementation fails. This wastes a lot of time and money. By letting business users choose the SaaS solutions they want to use, IT departments will see the risk of project failures due to change management issues almost disappear. Using SaaS solutions however does not mean that IT departments are no longer necessary. Once users are over their honeymoon period they will want these SaaS solutions to use Single Sign-on and be integrated with corporate systems and other SaaS solutions.

The next steps in the Cloud Revolution

The next step in the Cloud revolution will be solutions that make easy integration between on-site systems and between different SaaS solutions possible. Project managers will love to manage projects via a best-in-class project management SaaS. However they will still need to get time reporting info, travel expenses, resource allocation, etc. The reality will be that some of these systems can be offered via other SaaS solutions and some will be local. All of them will need to be integrated if the enterprise wants to get real benefits. History has a tendency to repeat itself. Middleware  and EAIs are not death because of the Cloud. They just will become EAIaaS.

The other Cloud revolution is likely to give business users tools to create their own applications in the Cloud. This does not mean programming tools but instead drag-and-drop wizards and dynamic data storage solutions. There are millions of business critical applications stored in Excel and Access files. It is time that business users get the proper Cloud tools to convert these into social corporate solutions. Google Apps and Force.com are ahead of the rest but they are far from being the winner yet. The war has just started…

Scalr, how to simplify cloud operations beyond Puppet and Chef

In previous articles I wrote about automating cloud operations as a key to successfully and quickly launching new services.

You can use Chef or Puppet to automate the deployment of servers. However neither solves some of the other problems with cloud operations: autoscaling and disaster recovery.

Scalr is relatively new and still a bit rough around the edges. However it has great promises to simplify deployment, automate scaling and quickly recover from server outage. Scalr uses the out-of-the-box functionality from Amazon to quickly bootstrap an environment via AMIs. Afterwards it implements an alternative autoscaling that does not rely on Amazon’s. Disaster recovery depends on the type of server but it can automatically recover from master database failure and other elements in a typical scalable web architecture.

Work on extending Scalr towards other providers like Eucalyptus and Rackspace seem to be work in progress.

Scalr is  not only a good sample of the 80-20 rule in which they focus on the most common scenarios. However via a plugin mechanism it is very easy to extend. I expect other public cloud providers to contribute plugins in the near future.

At the moment Scalr is still rough around the edges but definitely with the right push of some startups and public cloud providers it should quickly mature. With some custom plugins a telecom operator that is thinking about IaaS and private clouds should definitely look at it and inspire themselves…

 

Looking for the right hypervisor for my private cloud or IaaS is the wrong question

February 18, 2011 2 comments

If you are trying to find out what the right hypervisor is for your private cloud or IaaS then you might be asking the wrong question…

Do most applications really need an OS and hypervisor is a better question?

One company of the companies that is exploring this area is Joyent. Thier SmartOS is like the mix between a virtual machine and a combined OS + hypervisor. Instead of installing a hypervisor, on top an operating system, on top an application server or database, the Joyent team thought it would be more efficient to try to remove as many layers as possible between the application/data and the hardware.

According to publicly available videos and material, their SmartOS is based on a telecom technology for high-scalable low-latency application operations. Unfortunately Google does not seem to be able to answer which telecom technology it is. So if you know the answer, please leave a comment.

The idea of running applications as close to the hardware as possible and being able to scale an application over multiple servers is the ultimate goal of many cloud architects. Joyent claims that their SmartOS runs directly on the hardware. On top of SmartOS you are able to install virtualization but ideally you run applications and data stores directly.

The next step would be to combine the operating system with the  virtual machine/application server or database server into one.  Removing more layers will greatly improve performance as can be seen by Joyent’s performance tests.

So the real question is: do we need so many extra layers?

A distributed storage system, a virtualized webserver, a virtualized app server, a distributed SQL-accessble database or NoSQL solution that would run straight on hardware with a minimal extension to distribute load over multiple machines would be the ideal IaaS/PaaS architecture. It would give customers what they really need: performance, scalability, low-latency, etc. Why add a large set of OS and hypervisor functions that at the end are not strictly necessary?

How to avoid becoming a bad Amazon-clone when doing IaaS?

February 17, 2011 Leave a comment

In previous posts I already expressed my doubt about telecom operators getting any real benefits from offering virtual servers and other IaaS aspects to their customers. It looks like “a 2000 déjà vu” in which operators started to offer hosted email after Yahoo and other showed them the way…

So if you don’t want to be a bad clone of Amazon AWS what can you do?

Alternative 1: The Mobile IaaS

Operators are all about mobile communication. However creating mobile applications is hard. Testing them is even harder. Let alone testing them on different hand-sets in a continuous automated testing approach.

This is exactly the type of services that a mobile operator can offer:

  1. Mobile hardware virtualization – instead of virtualizing an x86, why not virtualize the phone hardware, e.g. Nvidia Tigra2. A mobile operating system (MOS) developer could choose which hardware to virtualize: the amount of ram, which sensors, which CPU, which graphics card, etc. Afterwards different flavors of operating systems can be ran on this hardware: iOS, Android, Blackberry OS, Symbian, Windows Phone 7, etc.
  2. Mobile operating system virtualization – For less experienced developers they can already pick a pre-configured phone, e.g. iPhone 4. Afterwards a developer can launch applications on the phone.
  3. Automated mobile phone testing – After installing the application on the phone or using the build in browser to access a remote application, a developer should be able to run automated tests. This would allow for a continuous testing approach whereby a new version of a mobile app or an HTML5 application can be automatically tested by a whole set of mobile devices.

The business model would be the same as virtual servers: you pay by the hour.

Alternative 2: Telecom Infrastructure as a Service

Why not offer telecom infrastructure as a service instead of pure virtual servers? Admitted, the boundry between IaaS, PaaS and SaaS might be thin but ideas can be the following:

  • Billing as a Service: this can go from offering a complete billing system as a service to MVNOs or other industries that need real-time billing capabilities. To the other extreme whereby you would only offer APIs for partners and developers to charge.
  • Numbering Plan as a Service: more then just offering DIDs, you should be able to create services and associate them to a number formed by shortcode+mobile phone+app id => 12367012345601 => calling this number would forward the call to the application 01 belonging to the mobile subscriber 670123456 and 123 means the owner pays the call. 234 could mean caller pays. 345 could mean caller pays premium call and gives revenue share to owner. This could allow every subscriber to have multiple applications without having to pay €1-€5 for a virtual phone number.

Alternative 3: Mobile Development IaaS

Different from the mobile IaaS in the sense that we focus on facilitating the development and hosting of applications for mobiles. Developers would find tools to develop mobile application interfaces very easily. You write it once and run it on a large set of different mobile devices. Services like mobile push notification, device detection, charging, etc. should also be available. Also the hosting is optimized for mobile applications in which you have very strict low-latency and unreliable connectivity requirements.

Alternative 4: Beat Amazon AWS at Bootstrapping, Configuration Management, and other cloud operation automatization

If you are going to offer virtual servers, focus enormously on the bootstrapping and configuration management. Amazon and others have virtual images that allow a quick deployment of an existing configuration. However that is good if your application is stable and your software stack needs few modifications. Real-life applications and business solutions need a lot more flexibility. Setting up a database cluster, a webserver/proxy/memcache farm, a high-availability loadbalancer, an application server cluster, etc. are very manual tasks on most public clouds. True you can get an image with an apache, tomcat and mysql pre-configured, but you do not get a multi-node cluster image. To solve this you could use software like Chef or Puppet for provisioning and ControlTier or Capistrano for command & control. See my other blog post

Alternative 5: Be the Salesforce for Telecom & Mobile Applications

This is more PaaS then SaaS but being a Telco PaaS in which in a Salesforce.com style you can use Web 2.0 and drag-and-drop to create mobile and telecom applications. Instead of having to code, people can create application via visual designers.

Alternative 6: No.de/Heroku/etc. alternative for quick web & mobile front-ends combined with custom protocols and on-site systems

No.de is PaaS for applications written in Node.js a javascript language that allows for massively scalable applications to be quickly developed.

Heroku is a PaaS for Ruby applications.

These are language specific PaaS that are similar to Google App Engine (GAE).  Where GAE allows Java and Python, No.de has Javascript and Heroku has Ruby. Developers can very easily create applications. However GAE falls short writing front-end applications: Web GUI/Mobile HTML5 quickly. Also integration with non-HTTP protocols is not offered. Although the Internet lets you believe HTTP and FTP are the only protocols out there, there are literally thousands of binary, alternative standards and proprietary systems that large enterprises can not do without. Examples in the telecom industry are RTSP, SS7, etc.  If you can combine the speed of developing modern front-end together with the integration with legacy systems, binary protocols, on-site systems, etc. then you can have a large advantage when corporations want to move their back-office to the cloud.

Alternative 7: The Zoho/37 Signals for Telecom Applications

Zoho and 37 Signals are companies specialized in creating one-purpose mini applications for small and medium enterprises. Instead of a Siebel, Zoho will give you a basic CRM that works out of the box and has virtually no learning curve.

Zoho allows others to build applications on their infrastructure as well and resell them.

The same concept could be applied to telecom. Mini telecom applications like a PBX in the Cloud, SMS marketing, etc. are build on a common infrastructure. Externals can extend the application portfolio and resell them.

Alternative 8: Hosted PaaS

Instead of offering PaaS you offer a hosted PaaS infrastructure for enterprises. Each enterprise gets their own PaaS. Companies like Longjump and WSO2 are in this market. Be sure to add in some telecom assets…

%d bloggers like this: