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I added some elements of Cloud Computing economic model of in a previous article to define Cloud Computing, Innovation in Cloud Computing is precisely its business model with the transformation of capital expenditures in operational expenditure. Is Capex vs. Opex an innovation for a Private Cloud?
How to make Private Cloud benefits from this innovation?
Look first at the scenarios for different types of private cloud.
What are the different cases, I found 3 scenarios:
- You make yourself a private cloud in your infrastructure,
- You build it with a partner in your infrastructure (in your Datacenter),
- You’re doing a Private Cloud with a partner (in its Datacenter).
What are the details of these options for the establishment of an Infrastructure as a Service : 200 virtual machines, with a growth plan.
You build your private cloud in your infrastructure. It means that you can only benefit the model if the supplier allows a rental of your investment. The mesh of your rent could be quite important (probably the 200 vm) and no ability to vary downward.
A Partner installs an infrastructure Cloud in your Datacenter. This infrastructure can allow you to have a smaller mesh (eg for 50 vm) but can allow, under certain conditions, to vary the capacity to increase but more difficult to downward.
You are not in your infrastructure and you build a private cloud in a partner’s premises. Given its capacity for sharing, you enjoyed the full potential of Cloud. Billing for a vm, based on your needs to rise or fall.
Find here after different scenarios. Option 3 fits with the vm needs. Beyond the economic aspect, it can also satisfy the need for peak.
What is the scenario of your Private Cloud?
All of us? To look closer, it is easy to see that classical players, even the most brilliant as Apple, are struggling to make the shift to Cloud Computing.
Next Monday, June 6th, Apple will be announcing an entry into the world of Cloud Computing. This may seem late considering that the Cloud has been in the air since 2007. If it takes time, it may be that a move to Cloud Computing is difficult.
Why is it so difficult?
It is difficult for all classical actors, those that are not born with the Cloud because Cloud is an economic innovation which completely changes the business model of these actors. Consider some examples: Microsoft is a software vendor (selling Windows for PC) to a software Service provider in the Cloud (Microsoft Live, Office 365). It is the same for hardware vendors. Whether EMC, IBM, HP or even Apple. The majority of their revenues are tied to product sales. Apple is no exception. Even if their products are very successful, they could lose their position if they are not related to Services in the Cloud.
For Cloud players like Google, no change, just an extension of their expertise. The development of the Android and Chrome OS Platforms is oriented to facilitate access to the connected world and then, to the Cloud… Google’s Cloud as a preferred one.
I wish Apple to surprise us with a Cloud innovation!
Cloud Computing is often seen as something strange, something abstract. Some see the answer to everything, others see a new evil, or a new threat. Finally, some enlightened or so enthusiasts see it as an opportunity.
Go talk to your customers, talk with potential users of Cloud Computing. Ask them what their needs are, ask what they think they have to do with Cloud: “My dear customer, tell me what the Cloud going to do for you?”, “Cloud Computing, you know? Tell me what you can do? ” “Look, Vanity Fair magazine is even talking about Cloud computing is to do what to do?” “Please!”
I often like to quote Henry Ford. “If I asked my customers what they want, they simply would have said a faster horse.”
And if the Cloud was for IT what the car is for the horse?
I confess, Cloud Computing is not an Opportunity!
What company wants to reduce its costs?
What company imagines more Agility?
What business dreams of Variability?
What company encourages a larger Customer volume?
Maybe you do not find yourself in those points then … look here !
Otherwise, look at the different points:
- What company wants to reduce its costs?
The economic and business competitiveness increases the pressure on costs, look at the full costs. What do you think about options to reduce it significantly?
- What company imagines more Agility?
Agility to increase competitiveness, to quickly add new services, new capabilities. Stop if a service is not relevant then reactivate it. What do you think about a little more Agility?
- What business dreams of Variability?
If I can choose between fixed or adjusted cost? If you could choose to adapt your consumption on the rise or fall. What do you think about paying for specific needs at marginal cost?
- What company encourages a larger Customer volume?
To be able to send the one-time customers as well as our regular or important ones. Would you offer flexible solutions and develop your client portfolio?
You’re still here?
So tell me how, on your side, you addres these points!
NIH? You will ask me what is this new acronym?
Indeed, the IIP – “Not Invented Here”. You find it for each change or transformation. Cloud Computing is an important transformation for both the Users for Information Technology and also for suppliers. More information here (in English).
At each major change its own part of resistance. I wanted to share with you one of my favorite resistance: NIH “Not Invented Here”. More information here (in English).
What is it? The NIH leads systematically reject everything that comes from outside and that is not the build by a person or even a group. Do you know your reptilian brain? It is our reptilian brain is the cause of all our strengths. The proportion of animal remains in us seeks security and only simple paths. This ‘reflex brain’ is blocking us to move and it prevents us from embracing the action and the opportunity in front of us.
Seth Godin describes very well in several of his works the evils of what he calls “The Lizard Brain” that paralyzes us. His latest book Poke the Box, encourages action and especially encourages us to exceed our ancestral reflexes. (find good reading here).
How to overcome the NIH? Your way to the cloud, you must go with the change, present it, listen and share. There is also a time to move forward decisively to allow the lizard to go into hiding and leave space for change.
I suggest you consider the NIH more like a reflex, without underestimating. Once passed, treat in deep objections and fears then with determination drive to the next step.
Have you ever met this lizard or other reptile in a project or a major change?