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  • 12Jun

    Yesterday I spent half a day discussing virtualization strategies with a few CTOs from a $15B firm from the healthcare industry.  It was refreshing to see the same glint in the eyes of these CTOs regarding virtualization’s potential to revolutionize their data centers as I saw before joining VMware.  The key aspects of these discussions was how virtualization can help them reduce not only their capex but also their opex.  They also saw the potential that virtualization provides in the areas of increasing their service delivery times (provisioning new systems for customers in 2 hours instead of 2 weeks or 2 months like they are used to) as well as enabeling a new way of thinking about disaster recovery.

    Like most IT executives, these CTOs knew about virtualization from the aspect of the hyperadvisor; the core of virtualization that allows you to run multiple operating systems on the same computer at the same time (with each operating system thinking it’s by itself).  This is just the start of the software computer revolution.  Now that you have isolated the OS down to just a bunch of files that can be moved between physical computers transaprently, you have the ability to provision a machine in a short period of time.  Create a base Virtual Machine image for each of your approved OS’.  Next copy that base OS to create another image for each of your general application types.  You now have a library of images that can copied within seconds to an existing physical machine, booted and viola, a provisioned server in minutes; substantially reducing opex.

    Also, since the “data” that the enterprise is already backing up for disaster recovery now contains the applications and operating system, DR takes on a whole new meaning.  (and not just DR, but resource “load balancing”, server maintenance, data center migrations…pretty much all the maintenance work that IT has to do.)  You can take your old machines and deploy them to your DR site. Now use your existing data replication software to replicate the VM files.  When your main data center goes down, just turn on your VMs in the DR data center and back to business.  Sure, performance might not be the same, but the business is functioning; the key point of DR.  And since you used hardware that you already own, your capex is reduced.

    “Cloud Computing for the Enterprise”.  That is what one of the CTO’s called virtualization.  As someone who has been living in the cloud for years on the Web 2.0, this is not a shocking way for me to think.  Cloud computing was easy for the web, where you had (or could build) apps out of standard web based (REST based) building blocks.  But for an enterprise architect who has to deal with complicated software packages from properitary vendors that process Billions of dollars in orders, this was a refreshing thing to hear.

    Could this type of statement indicate that virtualization and utility computing has arrived for the enterprise?

    I think that’s a safe statement.

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  • 03Jun

    I noticed something interesting tonight, I was cleaning out my feed subscriptions when I noticed a number of technology vendors that I was subscribed to had no new postings for many months (mostly vendors in the SOA space).  Got me curious as to what was going on.  Was Google Reader broken?  Was the feed broken?

    After checkign out the blogs at the source, I realized that those companies just stopped blogging.  It’s one thing to have quiet periods with startups, but a public or large software firm?  What exactly does that mean?  That their adoption of blogging was only a test, not to be taken seriously?  Or that their marketing people are too stuck in the old ways of marketing and can’t keep pace with blogosphere?

    Just thinking out loud…

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  • 03Jun

    Congratulations to the SnapLogic team for being selected Startup of the Week by InformationWeek.  I had the pleasure of doing a project with SnapLogic earlier this year and have been working on a few other projects using the SnapLogic data integration framework since then .  If you’re looking for a quick and easy way to expose data within your organization as a REST-ful interface, check out the SnapLogic framework.  It’s an open source platform and the recent 2.0 release (aka Cole) has made great strides forward in features and usability.

    Congrats to the entire SnapLogic Team!

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  • 21May

    One of the things that I have been working on recently is research for billing systems for SaaS companies. One project I have been working on recently has the eventual need for billing for the SaaS offerings they will be releasing soon. The challenge has been the multi-tiered nature of the billing solution that is needed. Becuase of that, we came up with a naming system to minimize the confusion:

    • Patrons are the customers of the SaaS provider.
    • Customers are the customers of the Patrons

    Not only must the solution handle billing for the SaaS provider’s patrons, but also handle billing pass through for the patron to charge their customers. And that pass through billing could be services or product based with each patron having a slightly different product offering.

    The initial thought was that this would have to built internally, maybe using a combination of Sugar CRM and osCommerce. The problem was that we realized we would need to do too much meatball surgery on these systems to really get what we wanted. Also, we don’t need a full fledged CRM system, just a light customer database (at least initially, boiling the ocean was something we were fighting even though we could see the need for it down the road). Then on top of all this, we still needed to work with a payment system to run the transactions for us. We really didn’t want to store credit card numbers on the system as we wanted to avoid all PCI headaches.

    What was needed was a service that would take care of all this for us!

    Enter two SaaS based billing solutions Zuora and Aria Systems. Both companies generally do the same thing: provide a SaaS based billing solution that can be used by SaaS, subscription based companies.

    Aria Systems has been around for a bit longer but been growing more organically and, I think due to their being based out of Philadelphia and not having expanded their sales force until just recently, not as well known. They have a much more mature billing service which can be co-branded or embedded via APIs into an existing SaaS service. The main downside that I see to their current business model is that they are only interested in doing business with companies that have an existing revenue stream. Primarily because of the high cost of configuring a client to use their system. They don’t appear to have embraced the SaaS model internally from the fact of allowing a small early grown company to sign up on a small pay as you go model and then enable that company to learn from self help documentation on implementing the system. Thus, I feel they are likely to miss the rising tide of young companies being successfully and riding that success.

    Zuora recently came out of stealth mode to announce their offering. I know a number of talented people who have gone over to Zuora and from what I have learned pre-launch and since from their website, it looks like at the core they offer the same thing as Aria Systems. However, the company was founded by poeple who came from the SaaS space, they claim to understand the new and expanding needs that these companies have and will have. It appears that their system is designed to provide flexibility for the SaaS provider to adapt their service offerings as well as run analytics across it. Something that Aria Systems, doesn’t talk up very much. Since they are still fresh out of the gate, I don’t know if they suffer from the same problem as Aria: not focused on seeding the market with self service, pay as you consume offering that can be used by startups. Their “web 2.0″ feel definitely gives them an advantage from initial impression alone.

    I’m anxious to learn more about Zuora’s capabilities and hope that it will be the silver bullet for the SaaS project I am working on. As I get more exposure to their offering, I will share my experience.

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  • 08May

    Yesterday I had dinner with a colleague from VMware. During our discussions he made a comment that surprised me and struck a realization for me. He was commenting on how the Macintosh laptops make ideal systems for running virtualization. The reason being that all the hardware on the MacBooks are standardized.

    The key to virtualization is the ability to abstract the physical hardware to the operating system. This is the hardest part of any vituralization technology. Not only because of the complexity of that software, but because of the Quality Assurance testing that must be done. Every combination of possible hardware must be tested to ensure reliability. When you think about the combination of hardware possible with PC laptops, the QA test matrix becomes quite large. But, with the Apple laptops, you have a much smaller matrix to test.

    We are starting to see serious projects around desktop virtualization (see recent articles How Merrill Lynch Plans To Virtualize Half Its Desktops and Desktop Virtualization Drives Security, Not Just Dollar Savings). When you consider the cost benefits for medium to large enterprises, I think it is clear that we are seeing the start of a wave for desktop virtualization in the IT industry. And that is ontop of just the start of data center virtualization.

    Now look at all the variables in PC based business laptops and the complexity of testing all these variations with the virtualization technology, and there is an opening for MacBooks. Of course, this would also require a major change with Apple, they would need to start building an organization that could support enterprises. This means working with them a bit more instead of taking the consumer approach of “here are the options, take it or leave it”.

    And then there is Microsoft and their upcoming virtualization technology, don’t expect them to just let such a invasion of MacBooks in the enterprise to happen.

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