Showing posts with label pay as you go. Show all posts
Showing posts with label pay as you go. Show all posts

November 15, 2009

Cloud Computing, The Next Evolution

On November 4-5 2009, I attended a good CSC Leading Edge Forum on Cloud Computing.

The kickoff by W. Brain Arthur was a highlight for me (he is the author of The Nature of Technology). He provided an excellent conceptualization of cloud and it’s place in overall technology advancement and body of world innovation. Essentially, he sees cloud in the 2000’s as the next evolution from the Internet in the 1990s. As such, the cloud is computational power in the “virtual world,” providing a host of benefits including easy access, connectivity, and cost efficiency. He sees the cloud coming out of the initial frenzy and into a industry sort-out that will result in a stable build out.

Another great speaker was David Moschelle from CSC who talked about the myriad benefits of moving to cloud such as scalability, self-service, pay as you go, agility, and ability to assemble and disassemble needed components virtually on the fly. With the cloud, we no longer have to own the computing means of production.

Of course, we also talked about the challenges, particularly security. Another speaker also spoke about the latency issues on the WAN with cloud, which currently limits some usability for transactional processing.

Over the course of the forum numerous examples of success were given including Bechtel achieving a 90% cost advantage by moving storage to the cloud. Others, such as Amazon were able to put up new web sites in 3 weeks versus 4-6 months previously. Also, Educational Testing Service as another example is using cloud bursting, since they tend to run data center at known cyclical peaks.

Others connected cloud with social computing: “the future of business is collaboration, the future of collaboration is in the cloud.”

In terms of the major types of cloud, I thought the relationship between responsibility and control was interesting. For example:

  • Software as a Service -- more “freedom” from responsibility for service, but less freedom to change service (i.e. less control)
  • Platform as a Service – (Hybrid)
  • Infrastructure as a Service – less freedom from responsibility for actual end-user services, more freedom to change service provision (i.e. more control)

In all cases, the examples demonstrated that organizations do not have a lot of leeway with SLAs with cloud providers. It’s pretty much a take it or leave it proposition. With liability to the vendor for an outage being limited to basically the cost of the service, not the cost of lost business or organizational downtime. However, it was noted that these mega-vendors providing cloud services probably have a better availability and security than it’s customers could have on their own. In other words, an outage or security breach will either way cost, and where is there a greater chance of this happening?

Sort of a good summary was this: “Leading companies are moving development/test and disaster recovery to the cloud,” but then this will reverse and companies will actually move their production in the cloud and provide mainly a back up and recovery capability in house. This is similar to how we handle energy now, were we get our electricity from the utilities, but have a back-up generator should the lights go dark.


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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!


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