Click here to close now.


Java IoT Authors: Elizabeth White, Pat Romanski, Flint Brenton, Liz McMillan, Jennifer Gill

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Blog Feed Post

About that ‘Unassailable Economic Argument’ for Public Cloud Computing

Turns out that ‘unassailable’ economic argument for public cloud computing is very assailable

Turns out that ‘unassailable’ economic argument for public cloud computing is very assailable

quote-badgeThe 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”

imageAh, 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 .


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.

quote-badgeThe 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.

-- Unchecked usage can kill cost benefits of cloud services

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.


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.

Read the original blog entry...

More Stories By Lori MacVittie

Lori MacVittie is responsible for education and evangelism of application services available across F5’s entire product suite. Her role includes authorship of technical materials and participation in a number of community-based forums and industry standards organizations, among other efforts. MacVittie has extensive programming experience as an application architect, as well as network and systems development and administration expertise. Prior to joining F5, MacVittie was an award-winning Senior Technology Editor at Network Computing Magazine, where she conducted product research and evaluation focused on integration with application and network architectures, and authored articles on a variety of topics aimed at IT professionals. Her most recent area of focus included SOA-related products and architectures. She holds a B.S. in Information and Computing Science from the University of Wisconsin at Green Bay, and an M.S. in Computer Science from Nova Southeastern University.

@ThingsExpo Stories
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. Because they can be accessed via the Internet, these devices create a tremendous opportunity to inte...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.