Who will rule the cloud computing market?

In this week's episode of Cloud Cover TV, Carl sits down with Andres Rodriguez, CEO of cloud storage startup Nasuni, to discuss the future of the cloud market.

We discuss:

  • The ever-prevalent public cloud versus private cloud
  • What storage clustering and elastic computing really give customers
  • The goal of building massive data centers with high levels of reliability
  • Achieving high levels of service through sophisticated software
  • How are the big players in the cloud computing game winning?
  • Is there really an incentive to beat Google?

For the rest of the episodes, check out the Cloud Cover TV archive.

Read the full transcript from this video below:  

Who will rule the cloud computing market?

Jo Maitland: Hi, and welcome to Cloud Cover TV, our weekly show on all the juiciest
news in the cloud computing market. I'm Jo Maitland here in San Francisco,
and this week my colleague, Carl Brooks talks with Andres Rodriguez, who
is the CEO of Nasuni, a Cloud storage start-up based in Massachusetts. They
discussed who will dominate the Cloud market over the next few years and
interestingly, this discussion took place a couple of days ago when Iron
Mountain Digital had shuttered its doors on its cloud storage service. So,
Andres has some interesting views on which companies he thinks will survive
in the Cloud computing and Cloud storage market and which ones, more
importantly, will drop out over the next two to three years. Check out the
interview next.

Carl Brooks: Are IT pros going to have to do this in their own shop? Are they
going to have to turn themselves into little mini Amazon [inaudible 01:00]?

Andres Rodriguez: That's a great question and I think that a lot of people, there's
this dichotomy between public Cloud and private Cloud, and a lot of people
are thinking they can copy the systems and the best practices out of the
big players, and say new storage clusters for storage, the same way that
Amazon has built the largest storage cluster in the world, and do
virtualization forums where you can have elastic computing, the same way
that Amazon has done with EC2.

My take on that is I think there is going to be a time for doing that and a
scale for doing that, but I really think that's it's just a temporary
solution that makes both the large enterprise customers and the large OEM
players feel safe. It feels safe because the OEM players can continue to
sell gear and software, which is something they love to do, and the
enterprise players feel like the data is still under their control. That
may take five, ten years to develop.

There's a lot of opportunity there for people, but I think that ultimately
the end goal for a lot of the stuff is massive. Ten 90,000 server data
centers cooled by rivers that are being run at very high levels of
reliability, huge economies of scales for how you buy the equipment, and
very sophisticated software for how you provision and deprovision the
systems, to make sure you reach these very high levels of service at very
low cost, and only the big players can win.

I think actually what's going to happen in this economy in the next two
years, is we're going to see a lot of the players that we used to think of
as being large players in the Cloud, drop out, because it's a game for
giants. This is not a game for just big companies. It's a game for giant
companies that have already a lot of their own business riding on these big
data centers.

Carl Brooks: Well, conversely though, there are many, many enterprises that are
not involved in IT that operate or come close to operating on a scale that
Microsoft or Google operate on. I talked to a large auto maker, and I was
at a show and I talked to one of their fellows who does some of their
design in their forward-looking things. He said, "We're experimenting with Cloud
computing techniques. We're probably looking 18 months to 36 months out to
do really large deployments," and I said, "Well, what about this new data
center Google is building out in Utah or some God forsaken place." He said,
"Well, it's a nice data center, but I've got three of those. They're really
my concern." It seems like there may be lessons to learn from Google, but
who's going to beat Google, who's got that many smart people?

Andres Rodriguez: The question is: who wants to beat Google?

Carl Brooks: Right.

Andres Rodriguez: In other words, for Microsoft to want to beat Google, it makes
sense. They're both competing in the same space, they both need scale, but
for an auto maker to beat Google, it may not make sense, even if they can
pay their way into it. Definitely for the mid-size business, for the IT
administrator that is just trying to protect the file servers or is just
trying to provision more storage into their arrays, it doesn't make any
sense to build their own little mini Cloud. It's much better to just attack
it straight on. The idea here is: If I want a terabyte, I can get a
terabyte in a minute, in a second, right? I don't have to go and get discs,
I don't have to go and build my own system for it.

Carl Brooks: Well, I've got to go to Best Buy. I'll probably be back in about 35
minutes with a terabyte, so...

Andres Rodriguez: I can beat that.

Jo Maitland: Now, for something different. Thank you by the way, Andres and Carl. It
was a great interview. I often get sent tech books which I very rarely get
a chance to read, so I thought I would give them away to you guys. The
first book on the shelf is
Buying a Cloud Solution, so if you're a
company in the market for buying Cloud services, this book had a lot of
interesting questions to ask. We've got
Offering a Cloud Solution, so if
you are a service provider or an IT company or a referrer, and you fancy
selling Cloud services, this book has a lot of good questions to ask on how
you might go about doing that.

If you're in the application development market and you like looking at
Force.com to develop new apps, this is the book on how you build
applications on Force.com, and then ultimately the 800 pound gorilla here,
we have an Amazon web services book on how you host your website on AWS.
So, for the first four people that like our new Facebook page, that's
cloudcovertv.com on Facebook, just like that page and tell us which book
you want, and it will be in the mail.

Thank you. This has been Cloud Cover TV. Tune in for more insider news on
the Cloud computing market next week.

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