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Focusing on investment opportunities in the information technology sector

John Gannon

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Top Stories by John Gannon

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)

Where Is Cloud Computing Dragging IT Operations?

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 infrastructure possible. 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)

Can Cisco Own the Cloud Computing Infrastructure?

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)

VMware Went Shopping and Came Home with SpringSource

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)

My New Company – VMTurbo

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. ... (more)