MS Hosting Summit 2009 – Tier1: Up is the new up

Dan had a great metaphor with Cloud as the iceberg. The visible tip of the iceberg is what the end users see and all the underwater parts are the ‘enabling technologies’ that just the Service Providers see.

Use of Cloud Computing Services

April 2008 quick check from TR1 shows 78% was not using, 15% don’t know and the rest would fit somewhere in between.

October 2008 poll shows not much progress in the uptake.

Most use is for Internet application Hosting, Databases, Disaster Recovery (DR). So it’s the SaaS providers using this as the infrastructure to run their apps.

Storage is most likely going to be the big winner when looking at Cloud in the SMB potentially some server replacement but much more they will be buying the pure SaaS offerings that run on the Cloud.

The real opportunity will be in the Mid-Tier Enterprise for both the SaaS apps as well as the more raw services.

Top Internet Applications

• Now: Messaging/Collaboration, CRM & BI, BPO & productivity, Accounting
• 2012: HR & Accounting, Filer Server replacement, Internet-based NAS and Storage

So bottom-line Cloud will become the platform

What do Customers need from Cloud Computing???

• Over 50% is asking for Flexibility; 40+% Low Cost; 40% IT move to opex
• Most interesting is that Green IT, Billing, Branding and Ease of Use scored a zero in the TR1 poll

What are the Hosters challenges to deploy Cloud services?

Not the technology or the how-to do it but the Other Priorities. Also selling it showed as a challenge

Top Managed Hosting Cloud Players according to TR1

• OpSource On-Demand & Connect
• Mosso (Rackspace) Slicehost, CloudFiles
• StrataScale’s Ironscale (RagingWire)
• Flexiscale (XCalibre)
• Terremark Infinistructure
• Savvis Utiliity
• Layeredtech on-demand storage
• Nirvanix

How not to lose in the Cloud:

• Security, Compliance, SLA, Availability, Cost vs In-House,
• Legacies and willingness to change, Hostile software licensing regimes, Hype

How to win:

• Understand your target audience. Are you focusing on SMB’s or ISVs or SaaS? Also look for synergies and partners
• Use Virtualization Solutions. CHoose to be a Cloud Infrastructure Provider or be a fully integrated PaaS.