Government Cloud Authors: Elizabeth White, Liz McMillan, Gopala Krishna Behara, Raju Myadam, Kevin Jackson

Related Topics: @CloudExpo, IBM Cloud, Microsoft Cloud, Artificial Intelligence, Server Monitoring

@CloudExpo: Blog Feed Post

The Long Tail of Cloud Computing?

Is it possible the purveyors of cloud computing are missing untapped potential of harvesting less of more?

My watered down translation of Long Tail theory is simply the notion that the aggregate sum of stuff buyers take in small, infrequent quantities will invariably outstrip the aggregate sum of the most popular counterparts.

Research evidence is beginning to corroborate what we saw some three years ago: There is a Long Tail in Cloud Computing. Consider some well accepted research points from IDC and others of late:

  • The Cloud Computing market will hit USD $42 Billion by 2012
  • Of that, more than 50% will comprise business process applications (the stuff we all use daily to run companies big and small)

So, I can infer then that some $20 Billion will comprise the 2012 feed bag from which all the little cloud computing piggies will line up at the trough to consume. Not a bad market, from 10,000 feet away. But here's the thing. The cloud computing market is already becoming pretty full. I mean rush hour commuter train full and it will get even more crowded in the coming few years. $20 Billion doesn't last long when you have a litany of players stepping up to the plate, and with the recent moves made by Oracle, Microsoft, EDS and other big time shops, the groovy young open source outfits that are all the rage now could very well be fighting over table scraps by 2012 (um, what's your exit strategy?). Table scraps in a $20 Billion market? Imagine that. Welcome to the hysteria of cloud computing.

So where is the refuge for agile boots trappers like 6fusion and the fraternity of cloud junkies in 2009?

There is another little research stat that is important, but that you won't find on any other cloud computing blog: IDC estimates that the net spending on IT services within the SMB space to eclipse USD $160 Billion by 2012.

Wait a sec. Hold the phone. How can SMB's spend that much money on IT services, yet the business apps the cloud industry is going to cuts it own throat to grab will only comprise some $20B? That's a pretty big gap, doncha think?

Herein lies the Long Tail of cloud computing.

Whilst the present day cloud computing vendors flock to gobble up the web based applications that made Web 2.0 more popular than a Rolling Stones reunion tour, the bigger market is all those business applications that automate processes and make the average SMB take flight. "Rubbish!" says the average pimple-faced freshman-drop-out-turned-internet-entrepreneur. The world is going to run on web services! Legacy apps are passé and unsexy. They are a dying breed, ready for the IT graveyard.

Maybe. But the research says not for the foreseeable future.

Here is what I don't think cloud computing companies ‘get' today: Technology is made to fit business; business is not made to fit technology. This point was nicely driven home recently by VMware's Dan Chu. In his blog post, Dan delivered a nice little kidney shot to the Google-ites. Here is my favorite line: "Customers are looking to match their IT platform to their business needs, not the inverse. The Google approach calls for a least common denominator set of non integrated cloud services that everyone squeezes into. Customers want the flexibility and breadth of solutions that exist today along with the efficiency of the cloud." I couldn't agree more, Dano. And I'll take that one step further. Real businesses are a made up of a collection of processes and procedures, which technology typically augments to make things faster or easier. So, unless what you are peddling can plug into Reality 1.0, I wouldn't want to the guy whose paycheck depends on widespread adoption.

Of course, Chu sounds like a kool-aid-drinking evangelist too. He just belongs to a different cult. But if you look to the school of product management, a field that suffers from a little less myopia, you will get the same type of message. In his concise post-mortem on The Demise of Cassatt, Saeed Khan illustrates a critical axiom that I think a lot of cloud service providers either ignore or don't understand: "Nobody, and I mean nobody, gets up in the morning and thinks, "I'm willing to change everything about how my business operates because a vendor has a really great product that could save me money."" In my opinion, that's why there is such a discrepancy between what the SMB market is going to spend and how much the cloud computing market for business applications will be worth, now and in the future.

It stands to reason then that the Long Tail of cloud computing could very well be the operation of critical business applications that are not sexy Web 2.0 apps or otherwise qualify as ‘way cool'. Is it possible the purveyors of cloud computing are missing untapped potential of harvesting less of more?

Read the original blog entry...

More Stories By John Cowan

John Cowan is co-founder and CEO of 6fusion. John is credited as 6fusion's business model visionary, bridging concepts and services behind cloud computing to the IT Service channel. In 2008, he along with his 6fusion collaborators successfully launched the industry's first single unit of meausurement for x86 computing, known as the Workload Allocation Cube (WAC). John is a 12 year veteran of business and product development within the IT and Telecommunications sectors and a graduate of Queen's University at Kingston.

@ThingsExpo Stories
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...