I find it quite interesting to see how this landscape is constantly changing… the winds of change seem to be blowing more violently now than ever before, and there are a lot of people out there that are getting quite confused – and with good reason.
I received two news-type emails today with views that tell very different stories… The first email from ITWeb referred to a Business World article stating that “EMC Philippines has unveiled a technology for ‘advanced virtual storage’”. The very next email was from InfoWorld with the main article titled “Why some vendors regret becoming cloud providers“ , which talks about EMC’s regrets and why they are shutting down their Atmos Online cloud storage service.
So who’s confused? Everybody?
My personal opinion is that its everyone. EMC in my opinion is missing the point to an extent or don’t understand ‘the cloud’. Sure the business model is tough and it might not make sense for a hardware vendor (or any vendor) to lose traditional business to its new cloud service offerings. We’re face with exactly the same when our existing licensed solftware clients want to convert to SaaS solutions.
Here are a few points to consider if they don’t offer the service:
- Someone else will. In my book, that’s lost opportunity.
- It doesn’t mean that existing customers will continue buying hardware forever (from EMC). They may just consider alternatives at some point.
- They missing the potential parallel (backup) revenue stream – there are a lot of cloud adopters out there, and adoption is growing – fast.
- They shouldn’t be selling the same volumes ‘as a service’. In other words: don’t sell the same volume – sell the same value!
- Cloud services may not generate the same revenue per customer in year 1, 2, 3 or 4, but by year 5 the scales start tipping.
That being said – I just need to emphasize that I don’t really understand the storage space – or the EMC Atmos model for that matter. I’m merely commenting on the general premise of these articles that I find them both interesting and amusing that I should get these emails within 20 minutes of each other. What these articles did do however is leave me wondering who’s not getting it – the vendors, reporters or me?
That being said – I think we might finally be coming out of the Gartner hype-cycle peak with regards to cloud computing. People are starting to understand the value proposition as well as the long term cost implications. Some of the vendors are starting to hit the stumbling blocks (alla EMC articles) and these are going to expose those that jumped on the bandwagon without a full understanding of what it’s all about…. Infoworld posted another worthy read that points to some of the potential shortfalls and realities of cloud computing and SaaS titled “Is the SaaS experiment finally over?”
Well, I hope you got some value from my ramblings…
Happy reading.