Public “Infrastructure as a Service” has got commodity (revisited)

After revisiting one of my first post: “IaaS has got commodity“, I must to say that I was so damn RIGHT! – excuse my incredible lack of modesty -.

Weeks ago my boss has told to the KIO’s board that I have two daemons – or maybe angels, I don’t see the difference… Ups! I will burn in hell – over my shoulders fighting about who will bring me the best advice: Public Cloud over my right shoulder and Private over my left one. The thing is both creatures speak to my ears about Private, honestly I don’t see much future into the Public model.

It’s not necessary to be a genius to know that any R&D investment must be put in other topics different than develop a Public IaaS Cloud. Maybe, you will have to take your attention to define a SaaS strategy, or if you are a vendor, add some Orchestration or Flexibility features to your hardware APIs that help you to integrate better with solutions like OpenStack, OpenVSwitch, Ceph, etc….

Or maybe, you will have to go to the upper layers and offer platforms that can help companies get Big Data analytics fast into their business dashboard or daily operation to reduce costs, risks, bring a better service or increase revenue.

Also, Mobility Applications are something to keep in mind.

Revisiting the post that I’ve just recalled, You will find the following lines about signals that help you to get if your service/product has become commodity: “…cheaper alternatives are just as good as what you have to offer… Other important factor is when there is not potential growth or It requires continuous small changes to survive much longer.” (Courtesy of “the end of competitive advantage” by Rita Gunther”)

We have to be honest, Public IaaS is something so strong to compete, you always will find an offer with lower prices; not the same growth that SaaS and there are slight changes between different offers.

Today, on the other hand, you will find more than a fact to support this maybe not so shocking statement.

  • Public IaaS’s got “MUCHISIMO” much cheaper: 1GB Memory VM with 40GB SSD Disks in less than USD10/mo
  • Some Clouders has just announced they’re moving out from public to hardly bet into private/hybrid cloud model
  • Public Known Clouders are not growing at formerly rates they used to, and profit has been reduced at half or lower
  • Formerly Succeeded Vendors and some Clouders attached to offer Cloud Infrastructure, as one of their core services, are trying to integrate OpenSource in order to speed up the adoption of cutting-edge features that bring an important contribution to Orchestration and the Software-Defined-X Strategy. Even few others are code-opening their Applications and Products in order to get a direct contribution from the OpenSource community and accelerate their development
  • Microsoft and other Clouders are bringing unlimited low performance object storage capacity at $ZERO Cost!

Well, don’t forget to attend to our second version of OpenStack Day in Mexico for LATAM

And help us to promote our hashtag #OpenStackHablaEspañol

Long day again, let me go to the bed.


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