Cloud computing: Value is assumed, cost matters
Over the last 10 years, IT has moved further and further outside the firewall. Starting with ASP (application service providers) and moving to multitenant SaaS (software as a service) on-demand applications, and now into cloud-computing environments, the status of on-premise IT has shifted from being a necessity to an option.
An interesting factor in this shift is the customer assumption that SaaS, like open source, has an assumed value, but ultimately, the fact that it's cheaper to run and manage is what will continue to drive adoption.
I had a good conversation at the SaaS Summit on Thursday with Treb Ryan and John Rowell, respectively CEO and CTO of OpSource, a provider of SaaS and Web applications for companies offering on-demand services.
The big question for me was, what is SaaS when cloud is all the rage? Is it a subset or just another classification for the same thing?
Ryan told me that "SaaS is the business version of cloud computing," meaning that cloud services such as Amazon.com's EC2 (Elastic Compute Cloud) offer great value but lack features required in the enterprise. Service-level agreements and compliance are simple examples. … Read more