Saturday, May 28, 2011

WOLF Weekly Cloud Sum-up, May 27, 2011

Good ideas most of the times run up against internal IT priorities and face a lot of resistance in small and medium businesses. This constant debate has created enormous opportunities for new business models to enter and remove the obstacles for innovation. This new business model is known now as “Software as a Service”, or “SaaS” for short. It is revolutionizing the software development industry on a global scale and is gaining momentum. If success is measured by revenue growth, then the comparative growth statistics presented in the graphic below present a convincing financial story for this “breakout” service model:

The reasons behind the success of SaaS are mainly less cost, less internal requirements and flexibility. Read More

The SaaS companies around today were the pioneers; they battled the naysayers and grew an industry and a new way of doing business from nothing. Because they were first, they didn't worry so much about system redundancy and the attendant headaches - like how to pay for it. But today everyone worries about redundancy because everyone is concerned about when and where the next outage will happen. This has led to many companies reconsidering their cloud model.

Bill McNee, CEO of analyst group Saugatuck Technology says, “The issue about cloud is not just at the technology level, it’s about the reshaping of business and new business opportunities.” There are two facets to this, he points out. On one hand, for those prepared to innovate, there’s the power of the cloud to increase competitiveness and realize new opportunities. On the other hand, there’s the threat posed by the cloud to those established businesses that are unable to innovate fast enough.

Cloud computing may have gained in popularity but cloud contracts still contain areas of risk for IT decision makers. Researchers at Gartner found that numerous cloud contracts contained no guarantees of uptime or performance service-level agreements (SLA) - despite many being used for business-critical operations. The report advises that users negotiate SLAs with penalties, especially for services key to business-critical operations. Alex Bona, research VP at Gartner said that decision makers should consider cloud contracts with face value. They should look into the hidden costs and risks involved before coming in terms with a contract.

Considering cloud computing to be next thing after web 2.0, the service that interests database personnel is called Database as a Service or simply DBaaS. It is like having your MySQL database on the cloud. In a DBaaS, the database tier in the backend is being overseen by a management layer that's responsible for monitoring and configuring the database to achieve optimized scaling, high availability, multi-tenancy and effective resource allocation in the cloud. In a DBaaS solution, the developer is spared much of the hassles of the tedious ongoing DB management tasks and operations, as those are automatically handled by the service itself.

We hope these short sum-ups on cloud computing are helping you to take a more knowledgeable approach towards moving to the cloud. Stay tuned for more sum-ups on in the forthcoming weeks.

Appreciate if you can add more to this list and help our readers to keep in touch with the Cloud...

Santanu Das
Marketing Evangelist, WOLF Frameworks

NOTE: The views expressed above are purely personal and for informational purposes only. WOLF FRAMEWORKS INDIA PVT. LTD. MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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