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SaaS
by steve on February 2, 2005

In this weeks post he explicitly states that computing (& bandwidth) are commodities, and makes clear that computers are not, He draws parallel to the electricity domain, as he has often done in the past - - Analogy used electricity is a commodity, generators arent.
And looks like SUN is taking the first public/celebrated (IBM has been active in this space) step in making computing available as a commodity....Off the TAP.
SUN on Monday announced plans to offer remote computing resources to business customers, allowing them to purchase computing time over a network. This basically is similar to how we buy electricity / water through wires & pipes.
As indicated by Schwartz, one feature of a commodity is that it is available at a standard prize/quantity, well sun does this to computing they are saying it will cost clients $1 an hour or each micro processor used.
Well SUN is not restricted itself to COMPUTING, it is also providing storage at $1 a month for a gig of storage. MIND BLOWING! - i think i will go get my self an hour of computing & gig of storage...we will need to change our mindset now!!!..dont we?What does this do for customers?...What is the BugList* that this helps address?
- Avoid over paying and possibly over building ...are there servers in your farm which have below 10-20% utilization?
- Companies don't need to set up their own grids, also they can benchmark their grids against the cost of the one offered by SUN.
- A pain point for most CIOs today is the space in the data centre, storage requires a lot of space.
- Another one is two faced the electricity that needs to be provided & the exhaust system for the heat...imagine the things CIO's are having to worry about ...
This I am sure is going to be the topic of many future posts....let's watch.
*This if from the book "Art of Innovation -- Tom Kelly". As per the book maintaining a bug list is one of the primary steps to being innovative, Jonathan Schwartz seems to be an ace at keeping the list & understanding & communicating it as well.Prashanth Rai
Permalink: Computing...Off the TAP from SUN
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/4812
Mr Wong
Vote for Computing...Off the TAP from SUN:
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Rating: 6.67 out of 3 vote(s) cast.
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Response from:
Simon
(02/06/05 11:56am)
Response from:
Mark Trawn
(09/29/05 1:50am)
The $/cpu hour concept is what I just used to get an IBM quote driven into the ground. So whatever Sun's success may be, they're helping me a ton by keeping all my other vendors honest.
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Whether Sun's (or anyone else's) offering is what the market wants, however, remains to be seen. One thing that's particularly important is the price. If you're a customer of this type of service, you have a *lot* of computation to do. I don't think it's possible to judge whether the $1 per CPU hour price tag (read $8640 per CPU year) is good value or not, without knowing rather more about the offering than is in the Utility Pricing table on Jonathan's weblog. What I can say right away is that Sun's offering is not so cheap that it's a no-brainer for people with large compute tasks to use a service like this.