John Gannon's Blog
How do you make money as a datacenter-focused cloud computing company? Aside
from the sale of compute capacity (a la Amazon or Rackspace), what are the
other revenue opportunities available? Here are some thoughts...
1. Management tools: The cloud hosters like Amazon are providing basic
management tools, but we can already see there is a proven market for
higher-order management and automation provided by companies like Rightscale
and 3Tera. There are also a variety of companies and products who have
figured out IT automation in the traditional datacenter (Bladelogic, Opsware,
etc). I’m waiting to see when they’ll start moving towards new product
development (or rebranding of existing solutions) that will be focused on
management of outsourced cloud environments. As their customers move to the
cloud, those customers will demand that their tradition... (more)
Well, if the inevitable outcome of reduced friction is to increase demand for
IT resources, someone is going to have to do the capacity planning.
In a sense, the impact of cloud computing will be to shift the tasks for IT
operations from tactical resource provisioning to strategic resource planning
- with an emphasis on achieving the most efficient, lowest cost
This is a far cry from the "your mess for less" outsourcing that has
previously been the outcome of cost focus - this is about creating an
automated, immediate search for the lowest cost, most avai... (more)
John Gannon's Blog
Cisco is getting into the server business, says NYTimes.com. One could
argue that the writing was on the wall when Cisco announced their Nexus
virtual switch platform complete with deep VMware networking integration, but
now there are few doubts that Cisco has clear designs on owning a huge
portion of the cloud computing market.
It is important to note that Cisco is not going to be getting into the box
business (a commodity business with low gross margins). They are going to
leverage their current architecture to build blade systems. These blades
are bound... (more)
As a member of the virtualization startup ecosystem, it was good to see one
of our own (Springsource) get picked up by VMware for a cool $400MM+ this
week. The private market and public market (really any market) are terrible
right now so it is encouraging to see one of the tech industry leaders make a
strategic acquisition and pay some big dollars. As an ex-VC I should also
point out that if you assume the VCs owned about half of the company (which
had raised about $35MM), this is a nice return (5X money or better, with the
first money in coming out in ~5 years) considering th... (more)
We just launched a very simple website for my new company, VMTurbo. If
you’re interested in VMware, virtualization, or cloud, drop in and register
so we can keep you up to date with what we’re doing.
We also just grabbed the VMTurbo twitter account, although we’re not using
it yet. Feel free to follow us and eventually I promise we will be tweeting
some good virtualization-related nuggets!
Also, I’ll be at VMworld next week with our cofounders…hope to see some
of you there.