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Exploring The Energy Flip Side

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Tonight on my drive home, I heard an interesting radio program on my local NPR station (KQED).  They were airing part of the Asia Society’s U.S.-China Green Energy Conference, a segment about Fueling a Clean Energy Future.  The introduction was from one of the partners (I think he was a partner) from NEA.  Most of the discussion that I heard (recording wasn’t posted at the time I am writing this) was about the energy needs of the world and the possible energy generation alternatives.

NEA is a venture capital firm.  So the types of investments that they are looking at are the ones that will score huge payback.  If the opportunity won’t turn into at least a $100M+ business, they usually aren’t interested.  So it makes sense that they would be investing huge in the power generation side of the planetary energy coin.

However, on the drive home, it struck me…what about the flip side of that coin?  If the estimated future power consumption for the planet is measured in the 10’s of Terawatts of power and if the power needs are increasing as developing nations raise their standard of living to match the developed nations standards, why isn’t there as much attention given to saving power?

Are we focused to much on addressing the symptoms and not enough on the cuase?

I remember years ago hearing about a company that was working on a power transformer that would allow devices to go into standby mode and consume fractions of a watt of power instead of 10’s of watts of power that is the norm now (see my previous post about Results from Monitoring the Meter).  About a year ago I tried to find that company, doesn’t exist any more.  Transmeta was another company that was focused on the power savings, but dropped off the radar and is a IP management shell employing more lawyers than engineers right now. The only company that I can think of immediately that is both above the radar and impacting huge power savings directly from their technology is VMware.

There are huge areas of waste that we can still address. Image how much of a dent we could put in the future consumption if our focus on how not to use as much electricity expanded beyond CFLs?  I hope there are more companies out there than I know of working on conservation technologies, but I guess I find myself a bit annoyed by the lack of focus that seems to be applied to them.

(Disclosure:  as of this writing I am employed at VMware as a Solutions Consultant.)

Next Level: Application Virtualization

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There has been a number of announcements over the past few weeks in the area of Application Virtualization, most notably VMware’s release of ThinApp.  With the ability to wrap an application in a virtualization container and then run that virtualized application as a stand alone executable, virtualization has been taken to the next level.

As I have been talking to enterprises about application virtualization, a base understanding of why this is important is always needed.  The simplest example of where application virtualization can be used is when you think of the need to have two different versions of the same application.  Image you are a QA tester testing a web based application.  Usually, you verify that the web based application works with both IE 7 and IE 6 or now Firefox 2 and Firefox 3.  In the past, you had to have two machines (physical or ideally virtualized) with each browser installed since they can’t live together on the same machine.  Talk about overhead.  With application virtualization, each version of IE gets placed in the virtualized wrapper and becomes a standalone executable.  Allowing you to run both apps at the same time on the same machine.

Moving to a more complex example, think about virtualizing most of your core applications across an enterprise.  If each application is a stand alone executable, what happens when a user accidentally deletes one of the library files for the application?  First off, this wouldn’t happen because they are all placed in the virtualized wrapper.  But if it did, all IT has to do is tell the user to download the virtualized app again from a central repository.

The cost savings for IT administrators of the desktop can really start to add up.  These include:

  • Less disk space requirements since the virtualized application is compressed
  • Savings in admin hours just from not having to reboot Windows after an application is installed; virtualized applications don’t require a reboot to install, just copy to the machine and run it (or run it from a USB key).
  • The elimination of the re-builds or re-installation of desktops due to user’s accidentally corrupting an application; the self contained virtualized apps can’t be corrupted like a natively installed one.
  • A reduction in troubleshooting application conflicts since each application lives in it’s own virtualized world.

When you take each of these areas of time saving and extend this across 20k, 50k, 200k desktops the time savings starts to have huge impact to the efficiency of an Desktop IT organization.

Stay tuned as I get more real world examples…

(Disclosure: I am currently employed as a Global Accounts Solutions Consultant at VMware.)

Billing Enters the SaaS Era

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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.