Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

Related Topics: Cloud Expo, Java, Microservices Journal, .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
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
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 Ciqada 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. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo 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. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
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
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.
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...