Click here to close now.

Welcome!

.NET Authors: Greg O'Connor, Pat Romanski, Jayaram Krishnaswamy, Adine Deford, Peter Silva

Related Topics: Cloud Expo, Java, MICROSERVICES, .NET, Virtualization

Cloud Expo: Article

Cloud Computing: Knowledge Leads to a Change in Thinking

An exclusive Q&A with Chetan Patwardhan, CEO of Stratogent

"The basic premise for any central computing system optimized for mass consumption is the 80/20 rule. It can be built only to serve 80% of the needs in an economized and optimized fashion," noted Chetan Patwardhan, CEO of Stratogent, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. "Having said that," Patwardhan continued, "the so-called cloud economics work only for a certain type of system and is outright prohibitively expensive for most enterprise setups where a typical three-year timeframe cost view is more dependent on human labor than on the infrastructure."

Cloud Computing Journal: Just having the enterprise data is good. Extracting meaningful information out of this data is priceless. Agree or disagree?

Chetan Patwardhan: Agree 100%. Let's look at the value creation process: data is nothing but innumerable floating points of reference. The gathering of data is the very first step. Creating useful information out of data is truly a daunting task because it's not based on the complexity of data, but the simplicity of information that leads to the creation of knowledge. For the CEO of a large company, a dozen key information sets presented in up/down or chart format can create knowledge of how the company is performing. Knowledge leads to a change in thinking, sometimes creating paradigm shifts in how companies approach challenges. Changes in thinking bring about decision making and changes in the behavior of the organization. This chain reaction finally leads to success.

One key here lies in the ability of the information system to let consumers of data effortlessly traverse from data sets to concise, simple information and vice versa. For example, if a simple graph shows the market share of a product worldwide, that's great information. Then, there should be the ability to click on that graph and keep drilling down to continents, regions, countries, states, cities, and finally stores. In other words, neither the data by itself nor the one way extraction of information can be answers in themselves without this ability to traverse back and forth, pivot, report, represent, and share with the ease of point and click.

Finally, let's revise the chain reaction: collection of good data leads to meaningful information. Information leads to knowledge, which in turn leads to changes in behavior and critical decision making. Not just the success, but the survival of enterprises more ever than before will be dictated by their ability to collect and covert data into precisely timed good decision making!

Cloud Computing Journal: Forrester's James Staten: "Not everything will move to the cloud as there are many business processes, data sets and workflows that require specific hardware or proprietary solutions that can't take advantage of cloud economics. For this reason we'll likely still have mainframes 20 years from now." Agree or disagree?

Patwardhan: Well, define mainframe and cloud. I thought they were synonymous :). Before the concept of cloud, the mainframe was the cloud. Back in the day, we connected to that cloud via the so-called dumb terminals. For those old enough to have used IBM PROFS messaging, it was the first instant email and instant messenger system in one. And it worked really well! Well, the limitation of the cloud and mainframe then is the same.

The basic premise for any central computing system optimized for mass consumption is the 80/20 rule. It can be built only to serve 80% of the needs in an economized and optimized fashion. Having said that, the so-called cloud economics work only for a certain type of system and is outright prohibitively expensive for most enterprise setups where a typical three-year timeframe cost view is more dependent on human labor than on the infrastructure.

Now, to the point, can cloud replace, say, 99% of all conventional computing. Certainly not any time in the near future. There are several reasons for this. First, let's admit that most applications were never designed and, as a matter of fact, can't be designed from scratch to run on the cloud. Why? Because fundamentally, there is no standardized, here-to-stay cloud infrastructure that enterprise applications can be written to. Second, as someone who has installed and managed systems for enterprises from startups to Fortune 500 companies, I can tell you that no two sets of information systems look alike, let alone 80% of them. Third, many enterprises need a level of security, customization, and back-end connections (XML, EDI, VPN) that can't be in the cloud without the cloud looking the same as the conventional system. Fourth, there is little transparency and answerability in the cloud when it comes to the ability to audit and maintain compliance levels. And last but not least, if the cloud finally maintains almost the same burden (minus keeping up the physical servers) on human engineers, where are the economies to be had?

From my perspective, consolidation of human resource talent pools, combined with the ability of leveraging the most economical cloud options (IAAS, PAAS and SAAS) as well as the conventional datacenter setups - essentially a super-hybrid approach - will be the way to go.

Cloud Computing Journal: The price of cloud computing will go up - so will the demand. Agree or disagree or....?

Patwardhan: I don't understand why the price of cloud computing will go up. I expect it to remain flat over the next few years. While the efficiencies in hardware will reduce the price and/or increase the processing capabilities, the overhead of maintaining availability and pressure to provide human interface will also increase. As a result, the prices will probably remain flat. As for the demand, it will increase, but one must first factor in the overall demand for computing, which is constantly on the rise. Since the cloud is one way to satiate that demand, cloud subscriptions will rise too. Of the three types of cloud, to me PaaS and SaaS should generate more demand than the pure IaaS, because they both address the problem of cost of human labor. As long as the PaaS and SaaS providers get it right in terms of addressing user needs, demand for those services should rise.

Cloud Computing Journal: Rackspace is reporting an 80% growth from cloud computing, Amazon continues to innovate and make great strides, and Microsoft, Dell and other big players are positioning themselves as big leaders. Are you expecting in the next 18 months to see the bottom fall out and scores of cloud providers failing or getting gobbled up by bigger players? Or what?

Patwardhan: The news of Rackspace reporting 80% growth in cloud computing needs a special lens for viewing! Rackspace's model from day one has been to lease hosted servers, networking gear, and storage. With their cloud solution, they are, hmmm, leasing hosted servers, networking gear and storage! Essentially, the only change in their offering (pre-cloud and cloud) is flexibility and elasticity. It's important to take into account the trajectory of their overall demand, then contrast that against how much of that demand was served by their conventional model versus their cloud model. The cloud model for Rackspace customers is nothing but a little cheaper way to get started.

As for the small and large companies setting up infrastructure farms, adding their differentiated layers of service, it's a phenomenon not unique to the cloud. It happens every time a new bandwagon arrives. For now, it seems that a variety of local, regional and national players are thriving. Again, this is a common phenomenon in any cycle.

What does the landscape look like five years from now? There are three big factors unique to cloud providers. First, it takes real infrastructure (datacenter, equipment) to create a cloud service. Second, infrastructure ages and becomes obsolete quickly in this industry. Third, smaller companies once past the first or second installation will struggle because either they will stagnate and die from attrition (easy in cloud) or from cash flow challenges if they find a way to grow.

Wait a minute, is that familiar to you? It's after all not that unique is it? All infra companies, from telecom to trucking, suffer the same fate. Ergo, some will die and for some customers their cloud will disappear with little notice. Yet some others will find bigger fish that will gobble them up at low prices. It's unlikely for an IaaS cloud provider to be bought by a big player for a handsome price unless they have great momentum, brand, and profitability. I don't expect dramatic events in the next 18 months, but do expect the law of the jungle to prevail over the next five years.

Cloud Computing Journal: Please name one thing that - despite what we all may have heard or read - you are certain is not going to happen in the future, with Cloud and BigData? ;-)

Patwardhan: I find this question amusing because it tempts me to put things in here like a telco or a bank will never use the cloud to provide their core telecom or banking service. I would have preferred to answer a question that mentioned a few things that are possible candidates for the cloud, but in my opinion will not happen. Let me leave this thought behind - if there are things that you think will never happen in the cloud, think again. It is a matter of time before the evolution of secure virtualized and orchestrated platforms, ingenuity of service providers, and the lack of qualified human engineers will move things to the cloud in a manner we are not willing to think about today.

More Stories By Jeremy Geelan

Jeremy Geelan is Chairman & CEO of the 21st Century Internet Group, Inc. and an Executive Academy Member of the International Academy of Digital Arts & Sciences. Formerly he was President & COO at Cloud Expo, Inc. and Conference Chair of the worldwide Cloud Expo series. He appears regularly at conferences and trade shows, speaking to technology audiences across six continents. You can follow him on twitter: @jg21.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...