Business Model Canvas for SaaS Providers

As a follow up to the earlier article on the IaaS business model, here is a high level overview of the SaaS provider business model and some of the strategic options that are in there... As examples in this article I consider two hypothetical SaaS providers. The first one delivers bookkeeping software, the second one delivers a project collaboration platform. more

Business Model Canvas for Cloud Providers

Cloud Computing is not so much about technology but more about the new business models that this technology enables. The question then is, how do these business models look? One of the most inspiring ways of looking at business models is through the so-called "Business Model Canvas". This article explores the basics of cloud computing business models as drawn out on such a canvas. more

Cloud Computing Can Make You More Secure

The number one concern cited for avoiding cloud computing is security. And there is a reason for that. Cloud providers have demonstrated some spectacular failures in the past, including Amazon's near total shutdown of an entire region, Dropbox's authentication snafu, and innumerous cloud providers that go belly-up. However, in the long run, cloud computing is destined to become more secure than in-house IT. I will briefly describe two dynamics in the industry that point in that direction, with substantiating evidence. more

Turning the IT-Value Chain Upside Down

Cloud computing will turn the IT-value chain upside down. That will lead to dramatic changes in the way hardware and software is being marketed and managed. These changes will be most profound for IT departments and value added resellers (VARs), but computer manufacturers will feel the heat too. To illustrate this point we can take a high level view of where servers are being deployed. more

A Look at Why Businesses Buy Cloud Services?

If you are a cloud provider, whether you are pure play or an internal IT department, it is very interesting to know who is buying cloud services, and why. In a recent survey by PB7 sponsored by EuroCloud Netherlands and others, a group of Dutch companies was interviewed about their motivations and hesitations around cloud computing. The survey's results were quite a bit more interesting than the usual lot. In this article I have cherry picked a few observations from the larger survey. more

Cloud Is the New Mainframe

Cloud computing, from a business and management perspective, has a great deal in common with mainframe computing. Mainframes are powerful, expensive and centralized pieces of computing equipment. This is in line with their role as infrastructure for mission-critical applications. For these types of applications, mainframes can be fairly efficient, even though they tend to need large teams of support specialists... Cloud computing is a new style of computing... more

IPv6 is Growing in Maturity, but Not Necessarily in Adoption

According to Google native IPv6 penetration has structurally crossed the 0.2% mark as a percentage of total traffic on the Internet in early 2011. This may not seem much, but it has doubled in a year, in an Internet that is still growing exponentially. more

Google’s Spending Spree: 2.4 Million Servers, and Counting

Google just published its Q3 financial results. So, what is Google spending on IT, and how much servers would that buy? This is one of their best kept secrets. In this post I give ballpark estimates based on back-of-the-envelop calculations, similar to the 'guestimates' I made 5 years ago. more

An Attack on DNS is an Attack on the Internet

On Saturday Aug 7th, DNS provider DNS Made Easy was the target of a very large denial of service attack. As far as can be determined the total traffic volume exceeded 40 Gigabit/second, enough to saturate 1 million dialup Internet lines. Several of DNS Made Easy's upstream providers had saturated backbone links themselves. There are indications that not only DNS Made Easy suffered from this attack, but the Internet as a whole. more

The Digital Divide on IP Addresses

This growth is clearly unsustainable within the IPv4 address space. Not every country can have these utilization levels. The hunger for new addresses is greatest in China (currently at 1 IPv4 address per 4 inhabitants) and India (1 address per 53 inhabitants). To put these at the modest level of 1 address per inhabitant requires more than 2.2 billion addresses, where there are currently only 290 million left... Given these numbers and the overall strong growth, any hopes of being able to reuse space that is allocated but not used (i.e. pre-CIDR) are futile. This demand dwarfs the entire US allocation. more

Buying Open Source… It’s a Different Ecosystem

A lot of organizations are interested in open source software, but fail to give it a fair chance compared to proprietary solutions. One reason for this is that the typical invitation to tender process puts open source at a disadvantage. Open source, as it happens, is made in a different ecosystem. more

Infrastructures on the Next Web

Werner Vogels, CTO of Amazon, explains how web applications will be built in the future. His point is twofold. The bad news is that expectations for good web applications are sky high. It has to have rich media, available on multiple devices, very scalable, social networking and that is just the beginning. The good news is that a lot of this can be done by services that are readily available on the web, with reasonable usage based pricing. more