Why we about to move from cloud computing to industrial computing?

I spent the other week at a new conference called Cloud Connect. Being able to spend four days emerged in an industry discussion about cloud computing really allows you to step back and think about where we are with this emerging industry. While it would be possible to write endlessly about all the meeting and conversations I had, you probably wouldn’t have enough time to read all that. So, I’ll spare you and give you the top four things I learned at Cloud Connect. I recommend that you also take a look at Brenda Michelson’s blogs from the event for a lot more detail. I would also refer you to Joe McKendrick’s blog from the event.

1. Customers are still figuring out what Cloud Computing is all about.  For those of us who spend way too many hours on the topic of cloud computing, it is easy to make the assumption that everyone knows what it is all about.  The reality is that most customers do not understand what cloud computing is.  Marcia Kaufman and I conducted a full day workshop called Introduction to Cloud. The more than 60 people who dedicated a full day to a discussion of all aspects of the cloud made it clear to us that they are still figuring out the difference between infrastructure as a service and platform as a service. They are still trying to understand the issues around security and what cloud computing will mean to their jobs.

2. There is a parallel universe out there among people who have been living and breathing cloud computing for the last few years. In their view the questions are very different. The big issues discussed among the well-connected were focused on a few key issues: is there such a thing as a private cloud?; Is Software as a Service really cloud computing? Will we ever have a true segmentation of the cloud computing market?

3. From the vantage point of the market, it is becoming clear that we are about to enter one of those transitional times in this important evolution of computing. Cloud Connect reminded me a lot of the early days of the commercial Unix market. When I attended my first Unix conference in the mid-1980s it was a different experience than going to a conference like Comdex. It was small. I could go and have a conversation with every vendor exhibiting. I had great meetings with true innovators. There was a spirit of change and innovation in the halls. I had the same feeling about the Cloud Connect conference. There were a small number of exhibitors. The key innovators driving the future of the market were there to discuss and debate the future. There was electricity in the air.

4. I also anticipate a change in the direction of cloud computing now that it is about to pass that tipping point. I am a student of history so I look for patterns. When Unix reached the stage where the giants woke up and started seeing huge opportunity, they jumped in with a vengeance. The great but small Unix technology companies were either acquired, got big or went out of business. I think that we are on the cusp of the same situation with cloud computing. IBM, HP, Microsoft, and a vast array of others have seen the future and it is the cloud. This will mean that emerging companies with great technology will have to be both really luck and really smart.

The bottom line is that Cloud Connect represented a seminal moment in cloud computing. There is plenty of fear among customers who are trying to figure out what it will mean to their own data centers. What will the organizational structure of the future look like? They don’t know and they are afraid. The innovative companies are looking at the coming armies of large vendors and are wondering how to keep their differentiation so that they can become the next Google rather than the next company whose name we can’t remember. There was much debate about two important issues: cloud standards and private clouds. Are these issues related? Of course. Standards always become an issue when there is a power grab in a market. If a Google, Microsoft, Amazon, IBM, or an Oracle is able to set the terms for cloud computing, market control can shift over night. Will standard interfaces be able to save the customer? And how about private clouds? Are they real? My observation and contention is that yes, private clouds are real. If you deploy the same automation, provisioning software, and workload management inside a company rather than inside a public cloud it is still a cloud. Ironically, the debate over the private cloud is also about power and position in the market, not about ideology. If a company like Google, Amazon, or name whichever company is your favorite flavor… is able to debunk the private cloud — guess who gets all the money? If you are a large company where IT and the data center is core to how you conduct business — you can and should have a private cloud that you control and manage.

So, after taking a step back I believe that we are witnessing the next generation of computing — the industrialization of computing. It might not be as much fun as the wild west that we are in the midst of right now but it is coming and should be here before we realize that it has happened.

  1. April 5, 2010 at 9:21 am

    You are absolutely spot on. Outside of the intro of supremely-hyped products, like the iPad (not saying it doesn’t deserve the hype), we are seeing a transition in computing not unlike the early days of UNIX (early to mid-80’s) or the mid-90’s and the advance of the Internet. Back then, intimate UNIX gatherings transitioned to much large conferences like UNIFORUM and UNIX/EXPO. Shows like Cloud Connect will likely be overshadowed in the not-too-distant future by much larger cloud conferences (perhaps the upcoming Cloud Expo will lead the way) as the world’s largest IT companies, as you suggest, jump into the cloud with both feet. We participated in the wild west that was UNIX, thrived on the wild west that was the Internet some 15 years ago, and now it’s the wild west of cloud computing. What next?

    • April 5, 2010 at 9:24 am

      What is next? I think we have a long few years of this industrialization era.

  2. April 5, 2010 at 11:22 am

    Judith – nice article. This is still a very immature market. John

    • February 4, 2011 at 12:16 pm

      Hi John,
      Yes, I agree with you that the market is very immature! However, there is a lot of activity. Many business leaders have made up their mind that they are moving to the cloud

  3. Markus Ruff
    April 5, 2010 at 1:09 pm

    I think it will be interesting to watch how Cloud computing will impact the consumer market and whith market will develop first. Also the connection between e-services and cloud enviroments could enable new ways of computing.

  4. February 4, 2011 at 12:12 pm

    Cloud computing can potentially have numerous effects, however @markus, i believe that this will not affect the consumer market in the near future solely because of the lack of internet stability that it requires to be effective. As of now cloud computing is aimed at a more business aspect who can benefit from it the most since it saves power and maintenance costs more efficiently with a larger workforce.

  5. February 6, 2011 at 10:39 am

    Hi,
    I really enjoyed visiting your site and reading the interesting articles and comments that are posted here. Nice job, keep up the good work. 🙂
    VJ-Global

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