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Posts Tagged ‘Cloud’

Read this. It is good to see that the Canadian federal government seems committed to the cloud. The fact that they seem to have moved beyond strategizing and roadmaps to actual deployment of cloud based services is a good thing, and ought to bode well as they move forward. The government’s existing IT infrastructure would seem to resemble a tangled nightmare and a move to cloud based computing should result in significant cost savings and productivity increases across the board. If they get it right…

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Steve Ballmer has never been short on hyperbole. Why should the cloud be any different? http://bit.ly/b2ImUw

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Read this http://blogs.idc.com/ie/?p=543. The CAGR works out to over 26%. This represents significant growth to say the least. The hype machine keeps on hyping. When I read numbers like this, I am pushed back in time to consider other markets and forecasts. Unified communications, which the Yankee Group dubbed ‘the 0 billion dollar market’, stands out as a good example. Plenty of promise, but a market that seemed to have trouble getting traction. The cloud may well be different, but there is always a danger with forecasts like this…

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Larry Digan at ZDNet has blogged on Rackspace and its cloud strategy. In essence Rackspace foresees a hybrid solution approach that sees customers switching between  hosted and cloud environments. Digan also points to some Forrester Research work that  states that “only 5 percent of large enterprises have either implemented cloud computing or plan to in the next 12 months.” I think Digan got the next bit wrong though. The blog says “Simply put, a hybrid approach is likely to be the norm for a while.” I agree on the hybrid approach part, but disagree on the ‘a while’ comment. I think the market is likely to stay in permanent hybrid mode.

Like I have written in previous posts, while cloud computing represents significant innovation, it does not represent a solution that will meet the needs of the entire market. It is important to consider these needs beyond satisfying the IT department and to reflect on the organization at large. Some companies will continue to use hosted and in-house solutions because the cloud does not mesh well with the strategic imperative of the company. While exploration of a cloud solution for certain applications may make sense (think about Salesforce.com, HR and Payroll), applications that are deemed core to the business will likely remain closer and will never make it to the cloud. At least to an external cloud…

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Peer1 in the UK is offering prospects a guaranteed 30% cost savings to switch to Peer1 UK’s hosting service.  I believe cost savings are a good thing – good for the customer and certainly good for the provider assuming  it is not significantly diluting its margins.  This is a win: win situation (do these ever truly occur??).

That said, I also think that using price as the hammer to encourage adoption is not a great idea unless you firmly believe you are engaged in selling a commodity and have little other value to add. It does not position Peer1 particularly well in the market – surely being price competitive, while focusing on superior customer service or disaster recovery or something else would be a better place to play? Unless you are Walmart, being known as  a price provider is not necessarily a good thing.

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Worth reading…McKinsey pushed this out via Twitter. Well done…

http://perspectives.mvdirona.com/2009/04/21/McKinseySpeculatesThatCloudComputingMayBeMoreExpensiveThanInternalIT.aspx

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According to McKinsey, in any case…

Thoughts?

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