Cloud computing: a market for melons?
Serial deep thinker, ex-VP of global portfolio strategy for AT&T Business Solutions and amateur economist Joe Weinman has released an 82-page formal dissertation on the economics behind the long-term shift to cloud computing that seems to drive a nail in the coffin of cloud haters.
Entitled "The Market for Melons," it's a twist on the classic economic explanation for information uncertainty taken from "The Market for Lemons: Quality Uncertainty and the Market Mechanism" by George Akerloff. Akerloff uses the used car market to show how suckers (aka used car buyers) buying lousy cars (lemons) creates an incentive to lower-quality goods being exchanged. The used car dealers know which cars are junk and the buyers don't, so they aim to sell more junky cars.
Weinman's twist on this for cloud computing is that cloud providers are in the exact opposite position; they know less and less about what their users are buying IT for, and therefore can't rip them off. Providers are forced to compete on quality, thus driving innovation in the market. The pay-per-use breakthrough of Amazon Web Services is used as the sterling example everyone is scrambling to keep up with.
Or so we think. The SearchCloudComputing.com staff is not a team of economists, but we are impressed.
enStratus adds support for more clouds
Cloud management software maker enStratus is busy piling on the partnerships. It now supports AT&T Synaptic Storage, EMC Atmos and Israeli cloud provider ServerExpress. EnStratus provides a single portal and API for an IT operation to interact with a variety of automated computing environments, such as translating the APIs from a data bucket on Amazon's S3 and a server at Rackspace Cloud into the same language.
The software currently supports Amazon Web Services, Rackspace, GoGrid, ReliaCloud, ServerExpress, Terremark, Google Storage, EMC Atmos, AT&T Synaptic Storage and Windows Azure on the public cloud side; and Eucalyptus, VMware, Cloud.com, and OpenStack on the cloud platform side.
EnStratus also recently added big brains James Urquhart and Simon Wardley to its Board of Advisors and one of its higher-profile customers is the Cloud Security Alliance, a vote of industry confidence if there ever was one.