|By Jeremy Geelan||
|October 30, 2012 10:30 AM EDT||
"The basic premise for any central computing system optimized for mass consumption is the 80/20 rule. It can be built only to serve 80% of the needs in an economized and optimized fashion," noted Chetan Patwardhan, CEO of Stratogent, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. "Having said that," Patwardhan continued, "the so-called cloud economics work only for a certain type of system and is outright prohibitively expensive for most enterprise setups where a typical three-year timeframe cost view is more dependent on human labor than on the infrastructure."
Cloud Computing Journal: Just having the enterprise data is good. Extracting meaningful information out of this data is priceless. Agree or disagree?
Chetan Patwardhan: Agree 100%. Let's look at the value creation process: data is nothing but innumerable floating points of reference. The gathering of data is the very first step. Creating useful information out of data is truly a daunting task because it's not based on the complexity of data, but the simplicity of information that leads to the creation of knowledge. For the CEO of a large company, a dozen key information sets presented in up/down or chart format can create knowledge of how the company is performing. Knowledge leads to a change in thinking, sometimes creating paradigm shifts in how companies approach challenges. Changes in thinking bring about decision making and changes in the behavior of the organization. This chain reaction finally leads to success.
One key here lies in the ability of the information system to let consumers of data effortlessly traverse from data sets to concise, simple information and vice versa. For example, if a simple graph shows the market share of a product worldwide, that's great information. Then, there should be the ability to click on that graph and keep drilling down to continents, regions, countries, states, cities, and finally stores. In other words, neither the data by itself nor the one way extraction of information can be answers in themselves without this ability to traverse back and forth, pivot, report, represent, and share with the ease of point and click.
Finally, let's revise the chain reaction: collection of good data leads to meaningful information. Information leads to knowledge, which in turn leads to changes in behavior and critical decision making. Not just the success, but the survival of enterprises more ever than before will be dictated by their ability to collect and covert data into precisely timed good decision making!
Cloud Computing Journal: Forrester's James Staten: "Not everything will move to the cloud as there are many business processes, data sets and workflows that require specific hardware or proprietary solutions that can't take advantage of cloud economics. For this reason we'll likely still have mainframes 20 years from now." Agree or disagree?
Patwardhan: Well, define mainframe and cloud. I thought they were synonymous :). Before the concept of cloud, the mainframe was the cloud. Back in the day, we connected to that cloud via the so-called dumb terminals. For those old enough to have used IBM PROFS messaging, it was the first instant email and instant messenger system in one. And it worked really well! Well, the limitation of the cloud and mainframe then is the same.
The basic premise for any central computing system optimized for mass consumption is the 80/20 rule. It can be built only to serve 80% of the needs in an economized and optimized fashion. Having said that, the so-called cloud economics work only for a certain type of system and is outright prohibitively expensive for most enterprise setups where a typical three-year timeframe cost view is more dependent on human labor than on the infrastructure.
Now, to the point, can cloud replace, say, 99% of all conventional computing. Certainly not any time in the near future. There are several reasons for this. First, let's admit that most applications were never designed and, as a matter of fact, can't be designed from scratch to run on the cloud. Why? Because fundamentally, there is no standardized, here-to-stay cloud infrastructure that enterprise applications can be written to. Second, as someone who has installed and managed systems for enterprises from startups to Fortune 500 companies, I can tell you that no two sets of information systems look alike, let alone 80% of them. Third, many enterprises need a level of security, customization, and back-end connections (XML, EDI, VPN) that can't be in the cloud without the cloud looking the same as the conventional system. Fourth, there is little transparency and answerability in the cloud when it comes to the ability to audit and maintain compliance levels. And last but not least, if the cloud finally maintains almost the same burden (minus keeping up the physical servers) on human engineers, where are the economies to be had?
From my perspective, consolidation of human resource talent pools, combined with the ability of leveraging the most economical cloud options (IAAS, PAAS and SAAS) as well as the conventional datacenter setups - essentially a super-hybrid approach - will be the way to go.
Cloud Computing Journal: The price of cloud computing will go up - so will the demand. Agree or disagree or....?
Patwardhan: I don't understand why the price of cloud computing will go up. I expect it to remain flat over the next few years. While the efficiencies in hardware will reduce the price and/or increase the processing capabilities, the overhead of maintaining availability and pressure to provide human interface will also increase. As a result, the prices will probably remain flat. As for the demand, it will increase, but one must first factor in the overall demand for computing, which is constantly on the rise. Since the cloud is one way to satiate that demand, cloud subscriptions will rise too. Of the three types of cloud, to me PaaS and SaaS should generate more demand than the pure IaaS, because they both address the problem of cost of human labor. As long as the PaaS and SaaS providers get it right in terms of addressing user needs, demand for those services should rise.
Cloud Computing Journal: Rackspace is reporting an 80% growth from cloud computing, Amazon continues to innovate and make great strides, and Microsoft, Dell and other big players are positioning themselves as big leaders. Are you expecting in the next 18 months to see the bottom fall out and scores of cloud providers failing or getting gobbled up by bigger players? Or what?
Patwardhan: The news of Rackspace reporting 80% growth in cloud computing needs a special lens for viewing! Rackspace's model from day one has been to lease hosted servers, networking gear, and storage. With their cloud solution, they are, hmmm, leasing hosted servers, networking gear and storage! Essentially, the only change in their offering (pre-cloud and cloud) is flexibility and elasticity. It's important to take into account the trajectory of their overall demand, then contrast that against how much of that demand was served by their conventional model versus their cloud model. The cloud model for Rackspace customers is nothing but a little cheaper way to get started.
As for the small and large companies setting up infrastructure farms, adding their differentiated layers of service, it's a phenomenon not unique to the cloud. It happens every time a new bandwagon arrives. For now, it seems that a variety of local, regional and national players are thriving. Again, this is a common phenomenon in any cycle.
What does the landscape look like five years from now? There are three big factors unique to cloud providers. First, it takes real infrastructure (datacenter, equipment) to create a cloud service. Second, infrastructure ages and becomes obsolete quickly in this industry. Third, smaller companies once past the first or second installation will struggle because either they will stagnate and die from attrition (easy in cloud) or from cash flow challenges if they find a way to grow.
Wait a minute, is that familiar to you? It's after all not that unique is it? All infra companies, from telecom to trucking, suffer the same fate. Ergo, some will die and for some customers their cloud will disappear with little notice. Yet some others will find bigger fish that will gobble them up at low prices. It's unlikely for an IaaS cloud provider to be bought by a big player for a handsome price unless they have great momentum, brand, and profitability. I don't expect dramatic events in the next 18 months, but do expect the law of the jungle to prevail over the next five years.
Cloud Computing Journal: Please name one thing that - despite what we all may have heard or read - you are certain is not going to happen in the future, with Cloud and BigData? ;-)
Patwardhan: I find this question amusing because it tempts me to put things in here like a telco or a bank will never use the cloud to provide their core telecom or banking service. I would have preferred to answer a question that mentioned a few things that are possible candidates for the cloud, but in my opinion will not happen. Let me leave this thought behind - if there are things that you think will never happen in the cloud, think again. It is a matter of time before the evolution of secure virtualized and orchestrated platforms, ingenuity of service providers, and the lack of qualified human engineers will move things to the cloud in a manner we are not willing to think about today.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
May. 28, 2015 03:00 PM EDT Reads: 4,682
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
May. 28, 2015 02:00 PM EDT Reads: 5,257
The world is at a tipping point where the technology, the device and global adoption are converging to such a point that we will see an explosion of a world where smartphone devices not only allow us to talk to each other, but allow for communication between everything – serving as a central hub from which we control our world – MediaTek is at the heart of both driving this and allowing the markets to drive this reality forward themselves. The next wave of consumer gadgets is here – smart, connected, and small. If your ambitions are big, so are ours. In his session at @ThingsExpo, Jack Hu, D...
May. 28, 2015 02:00 PM EDT Reads: 1,033
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
May. 28, 2015 01:00 PM EDT Reads: 6,631
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
May. 28, 2015 12:15 PM EDT Reads: 2,947
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 28, 2015 12:00 PM EDT Reads: 2,351
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
May. 28, 2015 12:00 PM EDT Reads: 2,511
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participa...
May. 28, 2015 11:30 AM EDT Reads: 1,091
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
May. 28, 2015 11:15 AM EDT Reads: 971
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
May. 28, 2015 11:08 AM EDT Reads: 714
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
May. 28, 2015 10:00 AM EDT Reads: 2,336
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
May. 28, 2015 10:00 AM EDT Reads: 4,589
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in 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 change in personal an...
May. 28, 2015 09:00 AM EDT Reads: 3,167
The worldwide cellular network will be the backbone of the future IoT, and the telecom industry is clamoring to get on board as more than just a data pipe. In his session at @ThingsExpo, Evan McGee, CTO of Ring Plus, Inc., discussed what service operators can offer that would benefit IoT entrepreneurs, inventors, and consumers. Evan McGee is the CTO of RingPlus, a leading innovative U.S. MVNO and wireless enabler. His focus is on combining web technologies with traditional telecom to create a new breed of unified communication that is easily accessible to the general consumer. With over a de...
May. 28, 2015 06:00 AM EDT Reads: 5,049
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
May. 28, 2015 05:00 AM EDT Reads: 6,271
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
May. 28, 2015 04:00 AM EDT Reads: 6,750
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
May. 28, 2015 04:00 AM EDT Reads: 7,185
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity for developers, start-ups, and companies of all sizes to engage with SAP today.
May. 28, 2015 03:00 AM EDT Reads: 5,415
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
May. 27, 2015 11:00 PM EDT Reads: 6,452
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
May. 27, 2015 10:00 PM EDT Reads: 5,811