In this post, we’ll look at some of the trends in cloud computing and how cloud providers are reacting to address the needs of their customers.
Cloud providers catering to niche audiences:
Rather than focusing on just providing a generic cloud that is application agnostic, or an application that is customer agnostic, cloud providers are starting to focus on addressing the needs of specific customers. They are realizing that generic clouds are not sufficient – a niche focus seeds quicker adoption. Providing customers generic CRM or Sales Force Automation software is not enough – after all these are complex applications that customers use and wield as a competitive advantage; so it doesn’t make sense to adopt a “one size fits all” approach to providing services for every customer. Customers will need the flexibility to extensively customize their applications and environments. Larger providers like Google and Amazon (AWS) are already addressing this need.
Proliferation of Private Clouds
Adoption of private and hybrid clouds are showing a steep rise since they address the consumer`s paranoia of security on public clouds. Larger organizations will typically use public clouds like AWS (Amazon web Services) and Rackspace only for non mission-critical applications, or as test-bench environments, but they will prefer to stay with private clouds for their mission critical applications and sensitive data needs. Smaller organizations will still continue to use these cloud providers for their mission-critical systems for obvious cost reasons.
Rather than focusing on just providing a generic cloud that is application agnostic, or an application that is customer agnostic, cloud providers are starting to focus on addressing the needs of specific customers. They are realizing that generic clouds are not sufficient – a niche focus seeds quicker adoption. Providing customers generic CRM or Sales Force Automation software is not enough – after all these are complex applications that customers use and wield as a competitive advantage; so it doesn’t make sense to adopt a “one size fits all” approach to providing services for every customer. Customers will need the flexibility to extensively customize their applications and environments. Larger providers like Google and Amazon (AWS) are already addressing this need.
Proliferation of Private Clouds
Adoption of private and hybrid clouds are showing a steep rise since they address the consumer`s paranoia of security on public clouds. Larger organizations will typically use public clouds like AWS (Amazon web Services) and Rackspace only for non mission-critical applications, or as test-bench environments, but they will prefer to stay with private clouds for their mission critical applications and sensitive data needs. Smaller organizations will still continue to use these cloud providers for their mission-critical systems for obvious cost reasons.
Rapid adoption of the Cloud by SMBs
Small and Medium Businesses will rapidly move to the cloud as awareness and education by providers and early adopters increases. SMBs are quickly realizing that the cloud offers them the ability to scale up operations much faster than if they tried to manage their IT needs in-house. Cloud providers are offering SMBs access to applications for everything from mail, office productivity, sales force automation to more specific applications like accounting, sales, and even business intelligence apps.
Small and Medium Businesses will rapidly move to the cloud as awareness and education by providers and early adopters increases. SMBs are quickly realizing that the cloud offers them the ability to scale up operations much faster than if they tried to manage their IT needs in-house. Cloud providers are offering SMBs access to applications for everything from mail, office productivity, sales force automation to more specific applications like accounting, sales, and even business intelligence apps.
Disaster Aftermath – the Need for BCP
After the tsunami in Japan, there has been an increase in awareness for the need for BCP (Business Continuity Planning) in SMBs. Something that was not a common practice before with SMBs, is now fast becoming a norm. As SMBs take a re-look at BCP, cloud solutions and cloud providers are becoming a corner stone for their BCP strategies. It is evidently simple for SMBs to understand that having their mission-critical systems on a public cloud infrastructure means that in the event of a disaster, their data is safe, their systems are up, and its business as usual for their customers. Interruptions are far less severe in a disaster situation and time to be back up and running servicing customers is almost as soon as employees can re-group and access an internet connection.
After the tsunami in Japan, there has been an increase in awareness for the need for BCP (Business Continuity Planning) in SMBs. Something that was not a common practice before with SMBs, is now fast becoming a norm. As SMBs take a re-look at BCP, cloud solutions and cloud providers are becoming a corner stone for their BCP strategies. It is evidently simple for SMBs to understand that having their mission-critical systems on a public cloud infrastructure means that in the event of a disaster, their data is safe, their systems are up, and its business as usual for their customers. Interruptions are far less severe in a disaster situation and time to be back up and running servicing customers is almost as soon as employees can re-group and access an internet connection.
Increase in the number of Large Public and Hybrid Cloud Providers
Call it economies of scale, new revenue opportunities, or simply a new line of business – large organizations are looking to leverage their resources and expertise in building large cloud infrastructures for personal use as well as to act as a provider for other large, medium, and small businesses. The likes of Amazon (AWS), Saleforce.com (Force.com), Google, Microsoft, and IBM are some of the top providers of cloud services today; there is no reason why other companies with massive in-house information processing needs will not extend their platforms, services and know-how as cloud services to other organizations. We will see more of these in the coming months and years.
Call it economies of scale, new revenue opportunities, or simply a new line of business – large organizations are looking to leverage their resources and expertise in building large cloud infrastructures for personal use as well as to act as a provider for other large, medium, and small businesses. The likes of Amazon (AWS), Saleforce.com (Force.com), Google, Microsoft, and IBM are some of the top providers of cloud services today; there is no reason why other companies with massive in-house information processing needs will not extend their platforms, services and know-how as cloud services to other organizations. We will see more of these in the coming months and years.
Addressing Data Location
One of the main banes of cloud computing as far as customers are concerned is that they have little knowledge of where the data is actually going to physically reside once they put it on the cloud. It may come as a surprise to know that your data may not be residing in the same city, state or for that matter country as your organization. While the cloud provider may be contractually obliged to you to ensure the privacy of your data, they may be even more obliged to abide by the laws of the state, and or country in which your data resides. So your organization’s rights may get marginalized. Cloud providers are very cognizant of this fear among some of their potential customers – to allay these fears, providers are giving their customers the option to choose where their data is geographically located. Larger providers like IBM are already providing services that are highlighting the fact that the data will be localized. This trend will only continue in the months ahead.
One of the main banes of cloud computing as far as customers are concerned is that they have little knowledge of where the data is actually going to physically reside once they put it on the cloud. It may come as a surprise to know that your data may not be residing in the same city, state or for that matter country as your organization. While the cloud provider may be contractually obliged to you to ensure the privacy of your data, they may be even more obliged to abide by the laws of the state, and or country in which your data resides. So your organization’s rights may get marginalized. Cloud providers are very cognizant of this fear among some of their potential customers – to allay these fears, providers are giving their customers the option to choose where their data is geographically located. Larger providers like IBM are already providing services that are highlighting the fact that the data will be localized. This trend will only continue in the months ahead.
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