In the first article of this series, I spoke about how and why cloud IT providers use lock-in. I'll briefly revisit this and then focus on strategies to maintain buyer power by minimizing lock-in.
Here are two predictions for differences in industry evolution between Cloud IT and 20th century autos:
- The Cloud IT sector will consolidate an order of magnitude faster (perhaps two) than the auto industry did
- Future Cloud IT oligopolists will work to maximize customer retention by maximizing switching costs (creating lock-in)
By allowing administrators to partition up underutilized physical servers into ‘virtual’ machines, they could increase utilization and free up capital. Unfortunately that hasn’t happened for the most part. It’s a poorly held secret that server utilization in enterprise datacenters is much lower than most people think as virtualization reaches saturation with about 75% of x86 servers now virtualized.
While most people working for cloud providers (I used to work at one) will tell you that Disaster Recovery is a great use case for cloud, our panelists weren't so sure. The feeling in the room is that utilizing cloud environment in addition to traditional on premise environments created a bunch of operational complexity and it was safer to keep both production and DR in-house.
None of this would have happened if Carly hadn’t made a mistake in firing all those HP salespeople and I hadn’t taken a risk.
Although successful with these large companies, something was always missing. I yearned to be able to create something on my own, and I’ve just taken an even bigger risk. After 12 years of planning, I left Rackspace in January to join the ranks of the entrepreneurs (or unemployed as some like to call us).
It's all about user generated data. You might think that GE is a product company, and you'd be right. But it's also a services company that services millions of industrial devices in the energy, transportation, healthcare, and manufacturing sectors. These devices create literally exabytes of data, data which GE currently uses to service and maintain it's customers equipment and gain insights on product design, and in the future will be used for much more.
This battery, along with electric autos, recharging stations, solar cell modules, residential and commercial solar installations and financing are all part of a carefully orchestrated plan launched years ago by Elon Musk and his colleagues to dramatically accelerate the transition to clean renewable energy.
What is the industry response to the AWS advance?
Meanwhile, IBM, HP, Microsoft, the EMC/VMware federation and other incumbents have taken notice and are investing heavily in new technology to help customers simultaneously achieve the business benefits of cloud computing, minimize migration risk and maintain platform stickiness. Case in point is ...
I recently came across Geoffrey Moore's recent YouTube video, Is Your Business Model Being Disrupted? The Era of Code Halo... and it triggered a few thoughts....