Over the course of this year, I’ve spoken with many organizations that are continuing to expand their usage of information-as-a-service (sometimes called data services) to support new business requirements such as self-service customer portals, real-time BI, and single-version-of-the-truth. With the growing complexity of data, increasing volume of data, and exploding security challenges all driving demand, IaaS is poised to grow significantly in the coming years, especially as existing integration technologies are failing to meet these new requirements. What we see is that most organizations that have embraced an IaaS strategy over the years aren’t looking back; they’re continuing to expand its usage to support more requirements such as real-time data, creating data domains, improving the ability to securely deliver information, integration with unstructured data and external sources, various Web portals, and enterprise search.
Recently, my colleague Gene Leganza, who serves Enterprise Architecture Professionals, compiled the top 15 technology trends EA should watch over the next three years . One of the trends Gene highlighted is that information-as-a-service (IaaS) is finding a broader audience. I see more organizations continuing to show strong interest in IaaS, as evidenced by increasing inquiries, to help with growing data integration challenges that traditional solutions are not addressing. IaaS can significantly alter IT’s approach to its data management strategy and delivers a flexible framework to support transactional, BI, and real-time data.
Here are my top predictions for 2011 related to IaaS:
With its latest public cloud offering, T-Systems not only comes close to Amazon’s EC2 pricing, it might even be cheaper than Amazon. The €4 billion, German headquartered IT services firm announced today a public beta running from November 2010 to February 2011.
Although Amazon recently made a time-bombed version of its EC2 available for free, a real, unlimited service still costs in the range of $0.095 per hour for a small server of one core with 1.7 GB RAM in Europe. Last week, Forrester had the chance to look at a beta version of T-Systems’ public cloud offering. Although no pricing has been announced officially, the beta showed the price for a virtual machine of a similar size to the aforementioned Amazon machine starting at €0.2/hour. T-Systems inidcated that they even like to go below the Amazon pricing! T-Systems has been working for more than a year with cloud provisioning tools from Zimory to manage the virtualization of larger-scale server and landscape compositions. Leveraging this experience, T-Systems manages to drive efficiency even further than the current economies of scale, which makes this aggressive move possible.
Is T-Systems planning to seriously compete with Amazon in the future and does it make sense for a traditional large enterprise IT services and hosting firm to compete with low-price public cloud offerings?
T-Systems’ public cloud beta shows a continuous memory sizing in a state-of-the-art self-service portal.