Cloud brokers & consultants like to talk alot about 'demistifying the cloud'. There's alot of whitepapers, case studies & cloud blogs on 'what is the cloud'. Marketing people almost soil themselves in delight at the prospects of how much money they can make from some of the cloud sales campaigns they design, complete with resplendent back slapping over well-earned cocktails on a Friday evening after work.
The I.T. industry is getting drunk & high of its own spin & the slap-happy tags of 'As A Service' onto things. But recently, I do believe this merriment has gotten to the stage of 'wasted'. That point of drunkeness where even the smallest task is nigh on impossible. I'm talking about the recent love affair with 'Bring Your Own Data' being slapped on as a marketing tag. Which usually comes now with a side order of 'all you can eat data'. Now sure, 'all you can eat data' is nothing new. Anyone who's worked in telecoms has had this phrase bandied about in meetings, internal memos etc..
But, this was never a phrase much seen in marketing. It would usually appear under 'unlimited data' with an asterisk pointing to small print telling you fair usage limits applied. The actual phrase 'all you can eat data' in the cloud is being used, & being used as its considered 'disruptive' & to make it stand out from the traditional straight-edged I.T./telecoms marketing speak of 'unlimited data'.
Okay, so disruptive marketing in the current I.T. services market is nothing new. But slapping 'Bring Your Own Data' on as a marketing piece frankly just shows both how desperately stupid marketing people are about the cloud, & also how incredibly badly those in the Cloud space have been about educating their customers, & also why the cloud space is so small right now. And this really shows in our nearest trading partner, the UK.
A new survey reveals that the current cloud computing services market for UK SMBs is worth £660m. According to the region-by-region reports done by the British Government that were published in October 2010, the total number of small to medium businesses in the UK is somewhere close to the order of 4.7 million. If you were to just take a pure average on that, the survey shows SME/SMB spend on cloud in the UK is currently valued at approx. £150 per year per small company. That's barely even the cost of a few Google premium mail accounts.
Stupidity such as 'Bring Your Own Data' is not marketing people being smart, or driving business into Cloud companies. In fact, the entire prospect of what the cloud offers, whether it is PAAS/SAAS/IAAS was always based on 'Bring Your Own Data'. It is in fact a fundamental of it. Calling it BYOD is stating the bloody obvious, & fooling no-one.
For example, in an IAAS scenario, you're asking people to bring their own data to your cloud facilities, otherwise they'd be bringing their own hardware & data & it would be classed as colocation. In the scenario of SAAS services, of course they're bringing their own data - whether they are a start-up, OR an established company. The same even goes for PAAS; you're bringing your own data to plug into a platform to generate systems in the cloud.
The marketeers in the Cloud have become too drunk off their own illusions of success that they can slap 'As A Service' on things, found a new cow to milk that upon inspection, even at possibly the biggest cross section of the potential market for Cloud, even just within the UK as an example they've made a cloud market worth roughly the same as the shared hosting market four years ago (i.e. pre recession/global market meltdown).
Success? I think not. Cloud marketeers need to get their heads out of the clouds, back onto a footing of reality, & actually engage with the prospective customers. The excuse of 'people won't pay' doesn't wash. They will. People look for cheap services because there's nothing to make them see beyond the value of the cheap services. And it's really a message that is crucial right now as the world still recovers; LOOK AFTER YOUR CUSTOMERS.
Slick marketing & corny chat-up lines like 'Bring Your Own Data' are like the prawn cocktail; dated, & no-one's really buying them. Return to basics, & bring your customers along with you, & give them the value they will pay for, & get rid of silly marketeers who are damaging the growth potential of the Cloud. You'll save yourself money too in the process that you can spend properly on your customers.
Showing posts with label Cost Savings. Show all posts
Showing posts with label Cost Savings. Show all posts
Tuesday, October 25, 2011
Thursday, June 16, 2011
Episode 7: Hello cloud, I'm a business - who are you?
Over sixty percent of Irish businesses cited the cost savings as an imperative for cloud adoption in Ireland according to a very recent survey commissioned for Cloud Arena by Seefin Data Management. Now while that may be pretty much par for the course & pretty much part of the standard message of Cloud Computing, others findings from this survey for most Irish cloud companies are of greater concern.
"The biggest challenge is that we need to learn more about Cloud & how it works"
"Inertia & a fear we need to be technically expert"
"Limited knowledge of cloud systems"
These were some of the comments that came back as part of the survey, accompanied by the statistic that over 20% of respondents said that overall understanding of the Cloud within their companies was low & they felt there was a need to educate their staff about the effectiveness of the Cloud. Cloud right now is THE buzzword in I.T., & Irish companies appear to be grasping it quite well when it comes to calling their products 'Cloud', but many of them seem to be very poor at actually using it to present better levels of infrastructural & I.S. cost economics to their business.
The comments about education are in some-ways almost a catch-22. For alot of these companies, if you were to suggest to them that to better educate their staff on the benefits/effectiveness that some form of training needed to be invested in, red flags would appear & a look of panic would befall the CFO in the business. There is also the flip side that in some of these companies that they continue to used aged technology because 'it's what they know', & no matter how great a new piece of tech might be for the business, there may be that I.T. manager who will find a way to shoot it down because it means he/she has to re-train, re-learn new things.
There is a perception that people who work in I.T. always want to learn the newest technologies, always keen to be dynamic, motivated to get to 'play' with new things. This is not always the case. People who work at the cutting edge will always remain there. People who work with older technology, from my own experience have generally tended to stay there, age with the tech they oversee & go through the motions to pick up the paycheck.
Another issue with the cloud is the absolute muddy-ness of the term itself. For companies who are trying to understand how they can harness the cost savings Cloud purports, tell them there's IAAS, PAAS & SAAS & their heads auto-explode instantly. This also is in line with the comments from the Cloud Arena survey of "Inertia & a fear we need to be technically expert".
The muddy-ness doesn;t end there. There's companies who are engaging in re branding services as 'Cloud' for a cash-in, who won't be challenged on it by their industry peers. The entire idea of Cloud following the spectacular collapse of the global economy has helped increase the buy & sell opportunities for cloud off the back of 'cloud saves you money' will not be placed in jeopardy by any kind of internal squabbles in the industry over whose products/services are/are not Cloud, or the industry self-examining. There are some minor indications of this where you'll often see some IAAS providers use statements like 'we are true cloud', but won't then follow-up by saying what is 'not cloud'.
How is any of this supposed to help get those who want to actually help their businesses engage in some obvious wins for their business in terms of costs, redundancy gains, & provider diversity to secure their business futures? It doesn't. All it does is prolong the sales cycles for cloud service providers, leave the issues facing buyers completely unaddressed & ultimately see the industry around the Cloud self-sabotage the opportunities. If you want passengers on your ship, you need to give them clear reasons to come aboard & stay - the idea of 'saves you money' or 'a great deal' is not enough anymore. There has to be an absolutely crystal clear value proposition that is plain as day, as money & credit even more so, is hard to come by these days. Pennies are being watched like they are large denomination notes.
Clarity & transparency about the cloud in the way the bottom part of the cloud food chain needs it to be to give full end-to-end adaptation, & growth I fear will be procrastinated upon the same way migration to IPV6 has been done. I remember discussing about migration & implementation of IPV6 over 6 years ago with some acquaintances of mine who were senior network engineers, & in recent conversations with them, they said they still hadn't moved into IPV6 because there was an argument about cost & the benefits still going on despite the imminent day zero scenario approaching.
Right now, as much as Cloud is the meal ticket for the technology industry, & those who leverage off it heavily to in turn provide services/businesses using it, even the lack of interoperability between various cloud systems/services/products is something that the industry itself won't address because there is too much at stake. It is pretty much an unspoken state of 'hold-fire' that in the near future will come to a crunch-time the same way IPV4 has. All this does is continue to leave the Cloud as an aspiration that people who want it will never reach, much like the white fluffy counterparts in the sky.
"The biggest challenge is that we need to learn more about Cloud & how it works"
"Inertia & a fear we need to be technically expert"
"Limited knowledge of cloud systems"
These were some of the comments that came back as part of the survey, accompanied by the statistic that over 20% of respondents said that overall understanding of the Cloud within their companies was low & they felt there was a need to educate their staff about the effectiveness of the Cloud. Cloud right now is THE buzzword in I.T., & Irish companies appear to be grasping it quite well when it comes to calling their products 'Cloud', but many of them seem to be very poor at actually using it to present better levels of infrastructural & I.S. cost economics to their business.
The comments about education are in some-ways almost a catch-22. For alot of these companies, if you were to suggest to them that to better educate their staff on the benefits/effectiveness that some form of training needed to be invested in, red flags would appear & a look of panic would befall the CFO in the business. There is also the flip side that in some of these companies that they continue to used aged technology because 'it's what they know', & no matter how great a new piece of tech might be for the business, there may be that I.T. manager who will find a way to shoot it down because it means he/she has to re-train, re-learn new things.
There is a perception that people who work in I.T. always want to learn the newest technologies, always keen to be dynamic, motivated to get to 'play' with new things. This is not always the case. People who work at the cutting edge will always remain there. People who work with older technology, from my own experience have generally tended to stay there, age with the tech they oversee & go through the motions to pick up the paycheck.
Another issue with the cloud is the absolute muddy-ness of the term itself. For companies who are trying to understand how they can harness the cost savings Cloud purports, tell them there's IAAS, PAAS & SAAS & their heads auto-explode instantly. This also is in line with the comments from the Cloud Arena survey of "Inertia & a fear we need to be technically expert".
The muddy-ness doesn;t end there. There's companies who are engaging in re branding services as 'Cloud' for a cash-in, who won't be challenged on it by their industry peers. The entire idea of Cloud following the spectacular collapse of the global economy has helped increase the buy & sell opportunities for cloud off the back of 'cloud saves you money' will not be placed in jeopardy by any kind of internal squabbles in the industry over whose products/services are/are not Cloud, or the industry self-examining. There are some minor indications of this where you'll often see some IAAS providers use statements like 'we are true cloud', but won't then follow-up by saying what is 'not cloud'.
How is any of this supposed to help get those who want to actually help their businesses engage in some obvious wins for their business in terms of costs, redundancy gains, & provider diversity to secure their business futures? It doesn't. All it does is prolong the sales cycles for cloud service providers, leave the issues facing buyers completely unaddressed & ultimately see the industry around the Cloud self-sabotage the opportunities. If you want passengers on your ship, you need to give them clear reasons to come aboard & stay - the idea of 'saves you money' or 'a great deal' is not enough anymore. There has to be an absolutely crystal clear value proposition that is plain as day, as money & credit even more so, is hard to come by these days. Pennies are being watched like they are large denomination notes.
Clarity & transparency about the cloud in the way the bottom part of the cloud food chain needs it to be to give full end-to-end adaptation, & growth I fear will be procrastinated upon the same way migration to IPV6 has been done. I remember discussing about migration & implementation of IPV6 over 6 years ago with some acquaintances of mine who were senior network engineers, & in recent conversations with them, they said they still hadn't moved into IPV6 because there was an argument about cost & the benefits still going on despite the imminent day zero scenario approaching.
Right now, as much as Cloud is the meal ticket for the technology industry, & those who leverage off it heavily to in turn provide services/businesses using it, even the lack of interoperability between various cloud systems/services/products is something that the industry itself won't address because there is too much at stake. It is pretty much an unspoken state of 'hold-fire' that in the near future will come to a crunch-time the same way IPV4 has. All this does is continue to leave the Cloud as an aspiration that people who want it will never reach, much like the white fluffy counterparts in the sky.
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