Showing posts with label on demand software. Show all posts
Showing posts with label on demand software. Show all posts

February 28, 2009

It’s Time to Invest in The Cloud

Cloud computing is "shorthand for centralized computing services that are delivered over the Internet (a.k.a. the 'cloud')."

Cloud computing is to traditional computing as electricity is to rubbing two twigs together to make a fire. Ok. That’s a little bit of an exaggeration, but not by much.

Years ago, people made a fire in their home or workspace which they continually fed to get warmth, lighting, and cooking; now they get these from centralized utilities that distribute it to them on an as needed basis. It’s a lot more efficient that way!

With cloud computing—it’s very similar. Currently, we have our own computing resources (like a hearth and firewood) that we must purchase and regularly maintain to do basic information technology processes for transaction and analytical processing, information sharing and collaboration. Now, we can get these functions from centralized computing facilities or data centers that distribute them, as needed on a subscription or metered basis. This gives us a predictable, stable source of computing at reduced prices, delivered via the Internet, when we want and need it, and without the hassle of having to purchase and maintain the hardware and software infrastructure. It’s a user-centric model!

Most of us with very busy and already complex lives inherently understand and are drawn to a model that is convenient and cost-effective. Flip on the switch and voila—lights/heat in one case or email, e-Commerce, and online entertainment in another.

To me, if its not a mission-specific or highly sensitive application, the question is why shouldn't it be in the cloud?

Fortune Magazine, 2 March 2009, on the rise of cloud computing juggernauts like Salesforce “a public company with a market capitalization of $3.5 billion, generates revenue of more than $1 billion a year—a 60% five-year annual growth rate—all from providing software subscriptions to business.”

Marc Benioff, their CEO says “We’ve always believe everything’s going into the cloud.”

Even detractors, like Larry Ellison, the CEO of Oracle, has helped fund Saleforce and another major cloud computing vendor, NetSuite. Moreover, “Oracle at the end of January lauched a new version of its online sales-management product…CRM on Demand” —so you see where Mr. Ellison is strategically placing some of his chips.

What about the other major application vendors?

“SAP said it would be releasing a software-as-a-service product in May…and Microsoft also has customer-management software available. IBM just named a cloud computing czar, and Google and Amazon are launching ambitions initiatives.”

So what’s holding up the transition?

Generally, the biggest cited obstacle to moving to cloud computing is security. Yet, “Salesforce has recorded only one security breach, a phishing attack in November 2007.” Moreover, because of the scope, scale, resources, and expertise that these vendors have, they can actually deploy and maintain a level of security that other organizations may only dream of.

Never-the-less, “companies remain committed to owning and hosting their own software and despite the tough economic times, they are loath to try something new, especially if it means making additional investments, however meager.”

But in the end “cost cutting and convenience are expected to prompt more firms to rent software that will be delivered over the Internet cloud.” IDC projects that by the end of 2009, “76% of U.S. organizations will use at least one web-delivered application for business use.”

Further, according to research firm, Gartner, "of the approximately $64 billion spent on business applications in 2008, about 10% or $6.4 billion, was spent on applications housed remotely and delivered via the Net."

The writing is on the wall or should I say in the cloud!


Share/Save/Bookmark

September 5, 2008

The Future of Cloud Computing

Cloud computing—“a style of computing where IT-related capabilities are provided ‘as a service’, allowing users to access technology-enabled services ‘in the cloud’ without knowledge of, expertise with, or control over the technology infrastructure that supports them.” (Wikipedia)

In an article in InfoWorld, 7 April 2008, called What Cloud Computing Really Means, Galen Gruman states that “Cloud computing encompasses any subscription-based or pay-per use service that, in real time over the Internet, extends IT capabilities.”

What’s an example of cloud computing?

An example of cloud computing is Google Apps that provides common business applications (similar to traditional office suits) online.”

How does cloud computing work?

In cloud computing, resources--either hardware or software--are available on-demand—as needed.

In the case of on-demand software, application service providers (ASPs) offer software as a service (SaaS). And for on-demand hardware or IT infrastructure (i.e. virtual data center capabilities such as servers or storage), the offering takes the form of utility computing. In both cases, technology resources are served up on a pay-as-you-go or metered basis, similar to the way a public utility would charge for electricity, oil/gas, telephone, water, and so on.

The cloud computing model is similar to service oriented architecture where there is a service provider and consumer, and here the Internet functions the basic service broker.

Cloud computing is has a basis in technology virtualization in which service providers "hide the physical characteristics of computing resources from their users [consumers]." (Wikipedia)

What are the major advantages of cloud computing?

Cost—one of the big advantages of this computing model is that the upfront IT investment cost is little to none, since the IT assets are in essence being rented.

Scalability—customers have the ability to use more resources when they have a surge in demand and can scale back or turn off the spigot when the resources are not needed.

Flexibility—As IT capabilities get updated by the service provider, consumers in the cloud model can make immediate use of them and benefit sooner than if they had to stand up the capabilities themselves.

Mission focus—The enterprise can stay focused on core mission and mission support capabilities and in essence easily outsource business support functions, where the service provider is responsible for enabling more generic (not strategic or differentiators) business capabilities.

What are the enterprise architecture implications?

Cloud computing can play an important role in focusing IT solutions on strategic mission requirements, simplifying and standardizing our IT infrastructures by outsourcing capabilities, utilizing a services oriented architecture (SOA) model where common business services are served up by providers and consumed by the enterprise, and more effectively managing costs.

What is the future of cloud computing?

Obviously, there are security implications, but as Galen Gruman states: “as SOA and virtualization permeate the enterprise, the idea of loosely coupled services running on an agile, scalable infrastructure should make every enterprise a node in the cloud. It’s a long-running tend with a far-out horizon. But among big metatrends, cloud computing is the hardest one to argue with in the long term.


Share/Save/Bookmark

November 9, 2007

Microsoft Crashes and Enterprise Architecture

The Wall Street Journal, 31 October 2007 states that “the error-reporting service built into the Windows operating system is a massive global network for speaking truth to power.” When a Windows program crashes, you get the pop-up offering to “tell Microsoft about this problem.”

On busy days, “50 gigabytes of data from these error reports stream into Microsoft… [where] two dozen programmers are charged with monitoring them.”

Microsoft won’t tell you which of their programs crash the most, although Internet Explorer and Windows Explorer seem likely bets, while at the other extreme, Word and Excel “seem like Gibraltar.”

A Microsoft article, “Crash Protect Your PC Now!” (article id 835565) states:

“You’ve probably been there. You’re happily working away in Windows when suddenly everything freezes for no apparent reason. Maybe you’ve pressed [Ctrl] + [Alt] + [Delete] and managed to end the troublesome task and get on with things, but even if your machine hasn’t locked solid you’ve still lost at best a few minutes’ work, and at worst an entire document. We hate to tell you this, but the problem isn’t necessarily one with your PC either – many crashes are caused by poor use of your computer’s resources, or too many program installations that took place while you left half-a-dozen other programs running in the background.”

Some reasons Microsoft gives for the system crashes:

  • Faulty hardware (sort of figures Microsoft would say that and say it first)
  • BIOS updates— “hardware problems can be solved by BIOS updates. This is because of the specification that all hardware is built to is open to some interpretation.”
  • Driver updates— “if you’re being plagued by crashes and you haven’t updated your drivers for a while, this could well be the solution – 40 per cent of crashes are caused by poor drivers. Of course, if your machine is fine at the moment, updating the drivers may actually introduce problems, or fix one problem and introduce another.”
  • Software problems— “the other reason your machine will crash, and this is definitely the most likely cause, is due to software…. There are two main reasons that software can crash - either it can’t gain access to a resource that it needs (such as memory), or it contains a bug… One of the main reasons a program crashes is because it can’t obtain enough memory from the OS to complete an operation….Another reason programs are prone to tripping up on the memory front is that the memory becomes fragmented the longer you leave your machine on.

What does Microsoft tell you to do?

Prepare! “Prepare yourself for crashes by saving regularly and often, and to keep the amount of programs running to a minimum.”

What does User-centric EA tell us to do?

I love Microsoft, but maybe it’s time to consider having the IT Investment Review Board let Microsoft know what they think about all the system crashes by voting with the organization’s wallet and spending project dollars on alternatives that offer application stability and reliability. 50 gigabytes of streaming data reports on a busy day is just about 50 gigabytes too much!


Share/Save/Bookmark

September 23, 2007

On Demand Software and Enterprise Architecture

The Wall Street Journal (WSJ), 19 September 2007 reported that SAP, the German technology giant (and world’s largest business software company—especially known for its enterprise resource planning software), will be offering on demand software to help capture more business among faster growing small and medium size firms. The advantage of this internet based appplication service model is that smaller companies who don’t have the money to purchase the otherwise pricey software, can now purchase on a pay as you go subscription service model.

Interestingly, the WSJ article does not identify this model as an application service provider (ASP), which is a business that provides computer-based services to customers over a wide area network, even though this is exactly what it is!

In general, there are a number of benefits touted to a organization using ASP services, and these are:

  • The ASP service provider owns, operates, and mainains the software and servers.
  • The ASP service provider adheres to service level agreement for availability, accessibility, and security.
  • The ASP provider ensures regular updates to the application software
  • Costs are spread on a pay as you go basis.

However on the downside, using ASP model limits (or excludes) your ability as a customer to customize the software or to integrate it with other non-ASP systems. Additionally, the customer organization may experience a general sense of loss of control by “outsourcing” the application, underlying technology infrastructure, and data store to an outside vendor.

ASP were a big deal around the turn of the 21st century when “the ASP Industry Consortium was formed in May 1999 by 25 leading technology companies. Founding companies included AT&T Corp., Cisco Systems Inc., Compaq Computer Corp., GTE Corp., IBM Corp., Sun Microsystems Inc., and UUNET Technologies.” (adapted from http://ecommerce.hostip.info)

For some reason, ASP seems to have become a “dirty word”. Even the latest market estimates for ASPs in Wikipedia dates back to 2003. Also, a quick Google search for applications service providers brings up a lot of information dated between 1999-2003. Even the current aspindustry.org website looks like crap. Apparently ASPs have all but fallen off the map in the last 4 years!

From a User-centric EA standpoint, the (ASP) model for on demand software is an option that should be carefully considered, based on the pros and cons for your particular organization, in developing target architecture for the enterprise. Indeed, many applications (like SAP) are being deployed using the ASP web application model, and we can expect this service to grow as an option, whether or not it is called an ASP in the future. Hey, maybe that’s what happened to A-S-P – it got transposed to S-A-P!


Share/Save/Bookmark