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)
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As a junior staffer at a VC firm, I think its important to understand where
and how you can be helpful to portfolio companies. The advice I received
from my venture capital teachers Stuart Ellman and Will Porteous of RRE
Ventures (blog) has stuck with me, and I’ve tried to operate using that
advice since starting my VC career.
I’m paraphrasing here (it’s been about a year since the class where we
discussed it) but in essence, the advice was to simply be helpful and humble.
Here are some examples of ways that a junior VC can add value:
Business development: Int... (more)
I don’t think anyone will argue with me that the typical IT management tool
user interface (UI) is just plain awful. There are several reasons for
this, but the most obvious one is that an enterprise software product is
loaded with hundreds of features, functions, and configurations, all of which
need to be accessible to an end user.
As cloud computing aggregates formerly disparate functions and resources into
logical groups, it stands to reason that user interfaces will not need as
much complexity as is required today, simply because there is more
abstraction of the resources... (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
Although cloud computing provides financial benefits like reduction of CAPEX
and the ability to pay-as-you-go, organizations will still need a reasonable
amount of granularity in the reporting of cloud usage and the ability to map
that usage into a financial chargeback model that makes sense.
Amazon has gone live with Windows support in the EC2 cloud while at the same
time announcing a private beta for some new scaling and load balancing
features. These features will certainly be useful for the smaller customers
of EC2, but my guess is that those features were ... (more)