|By Lori MacVittie||
|May 25, 2011 01:30 PM EDT||
Turns out that ‘unassailable’ economic argument for public cloud computing is very assailable
The economic arguments are unassailable. Economies of scale make cloud computing more cost effective than running their own servers for all but the largest organisations. Cloud computing is also a perfect fit for the smart mobile devices that are eating into PC and laptop market. -- Tim Anderson, “Let the Cloud Developer Wars Begin”
Ah, Tim. The arguments are not unassailable and, in fact, it appears you might be guilty of having tunnel vision – seeing only the list price and forgetting to factor in the associated costs that make public cloud computing not so economically attractive under many situations. Yes, on a per hour basis, per CPU cycle, per byte of RAM, public cloud computing is almost certainly cheaper than any other option. But that doesn’t mean that arguments for cloud computing (which is much more than just cheap compute resources) are economically unassailable. Ignoring for a moment that it isn’t as clear cut as basing a deployment strategy purely on costs, the variability in bandwidth and storage costs along with other factors that generate both hard and soft costs associated with applications must be considered .
MACRO versus MICRO ECONOMICS
The economic arguments for cloud computing almost always boil down to the competing views of micro versus macro economics. Those in favor of public cloud computing are micro-economic enthusiasts, narrowing in on the cost per cycle or hour of a given resource. But micro-economics don’t work for an application because an application is not an island of functionality; it’s an integrated, dependent component that is part of a larger, macro-economic environment in which other factors impact total costs.
The lack of control over resources in external environments can be problematic for IT organizations seeking to leverage cheaper, commodity resources in public cloud environments. Failing to impose constraints on auto-scaling – as well as defining processes for de-scaling – and the inability to track and manage developer instances launched and left running are certainly two of the more common causes of “cloud sprawl.” Such scenarios can certainly lead to spiraling costs that, while not technically the fault of cloud computing or providers, may engender enough concern in enterprise IT to keep from pushing the “launch” button.
The touted cost savings associated with cloud services didn't pan out for Ernie Neuman, not because the savings weren't real, but because the use of the service got out of hand.
When he worked in IT for the Cole & Weber advertising firm in Seattle two and a half years ago, Neuman enlisted cloud services from a provider called Tier3, but had to bail because the costs quickly overran the budget, a victim of what he calls cloud sprawl - the uncontrolled growth of virtual servers as developers set them up at will, then abandoned them to work on other servers without shutting down the servers they no longer need.
Whereas he expected the developers to use up to 25 virtual servers, the actual number hit 70 or so. "The bills were out of control compared with what the business planned to spend," he says.
But these are not the only causes of cost overruns in public cloud computing environments and, in fact, uncontrolled provisioning whether due to auto-scaling or developers forgetfulness is not peculiar to public cloud but rather can be a problem in private cloud computing implementations as well. Without the proper processes and policies – and the right infrastructure and systems to enforce them – cloud sprawl will certainly impact especially those large enterprises for whom private cloud is becoming so attractive an option.
While it’s vastly more difficult to implement the proper processes and procedures automatically in public as opposed to private cloud computing environments because of the lack of maturity in infrastructure services in the public arena, there are other, hotter issues in public cloud that will just as quickly burn up an IT or business budget if not recognized and addressed before deployment. And it’s this that cloud computing cannot necessarily address even by offering infrastructure services, which makes private cloud all the more attractive.
Though not quite technically accurate, we’ll use traffic sprawl to describe increasing amounts of unrelated traffic a cloud-deployed application must process. It’s the extra traffic – the malicious attacks and the leftovers from the last application that occupied an IP address – that the application must field and ultimately reject. This traffic is nothing less than a money pit, burning up CPU cycles and RAM that translate directly into dollars for customers. Every request an application handles – good or bad – costs money.
The traditional answer to preventing the unnecessary consumption of resources on servers due to malicious or unwanted traffic is a web application firewall (WAF) and basic firewalling services. Both do, in fact, prevent that traffic from consuming resources on the server because they reject it, thereby preventing it from ever being seen by the application. So far so good. But in a public cloud computing environment you’re going to have to pay for the resources the services consumed, too. In other words, you’re paying per hour to process illegitimate and unwanted traffic no matter what. Even if IaaS providers were to offer WAF and more firewall services, you’re going to pay for that and all the unwanted, malicious traffic that comes your way will cost you, burning up your budget faster than you can say “technological money pit.”
This is not to say that both types of firewall services are not a good idea in a public cloud environment; they are a valuable resource regardless and should be part and parcel of any dynamic infrastructure. But it is true that in a public cloud environment they address only security issues, and are unlikely to redress cost overruns but instead may help you further along the path to budget burnout.
HYBRID WILL DOMINATE CLOUD COMPUTING
I’ve made the statement before, I’ll make it again: hybrid models will dominate cloud computing in general due primarily to issues around control. Control over processes, over budgets, and over services. The inability to effectively control traffic at the network layer imposes higher processing and server consumption rates in public environments than in private, controlled environments even when public resources are leveraged in the private environment through hybrid architectures enabled by virtual private cloud computing technologies. Traffic sprawl initiated because of shared IP addresses in public cloud computing environments alone is simply not a factor in private and even hybrid style architectures where public resources are never exposed via a publicly accessible IP address. Malicious traffic is never processed by applications and servers in a well-secured and architected private environment because firewalls and application firewalls screen out such traffic and prevent them from unnecessarily increasing compute and network resource consumption, thereby expanding the capacity of existing resources. The costs of such technology and controls are shared across the organization and are fixed, leading to better forecasting in budgeting and planning and eliminating the concern that such essential services are not the cause of a budget overrun.
Control over provisioning of resources in private environments is more easily achieved through existing and emerging technology, while public cloud computing environments still struggle to offer even the most rudimentary of data center infrastructure services. Without the ability to apply enterprise-class controls and limits on public cloud computing resources, organizations are likely to find that the macro-economic costs of cloud end up negating the benefits initially realized by cheap, easy to provision resources. A clear strategy with defined boundaries and processes – both technical and people related – must be defined before making the leap lest sprawl overrun budgets and eliminate the micro-economic benefits that could be realized by public cloud computing.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Oct. 28, 2016 02:00 AM EDT Reads: 4,373
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Oct. 28, 2016 02:00 AM EDT Reads: 34,346
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 28, 2016 01:00 AM EDT Reads: 1,201
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 28, 2016 12:45 AM EDT Reads: 1,514
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Oct. 28, 2016 12:00 AM EDT Reads: 1,452
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Oct. 27, 2016 10:30 PM EDT Reads: 3,084
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 27, 2016 10:30 PM EDT Reads: 9,807
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 27, 2016 10:30 PM EDT Reads: 552
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Oct. 27, 2016 10:30 PM EDT Reads: 3,839
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 27, 2016 10:15 PM EDT Reads: 1,163
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 27, 2016 10:00 PM EDT Reads: 2,913
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Oct. 27, 2016 10:00 PM EDT Reads: 2,120
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Oct. 27, 2016 09:45 PM EDT Reads: 552
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 27, 2016 07:45 PM EDT Reads: 1,465
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Oct. 27, 2016 07:15 PM EDT Reads: 323
The Open Connectivity Foundation (OCF), sponsor of the IoTivity open source project, and AllSeen Alliance, which provides the AllJoyn® open source IoT framework, today announced that the two organizations’ boards have approved a merger under the OCF name and bylaws. This merger will advance interoperability between connected devices from both groups, enabling the full operating potential of IoT and representing a significant step towards a connected ecosystem.
Oct. 27, 2016 06:15 PM EDT Reads: 1,332
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Oct. 27, 2016 05:45 PM EDT Reads: 1,192
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 27, 2016 05:00 PM EDT Reads: 1,079
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Oct. 27, 2016 04:30 PM EDT Reads: 1,346
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Oct. 27, 2016 04:15 PM EDT Reads: 3,287