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Network Service Providers as Cloud Providers – New Report From Cisco on Cloud Computing Landscape

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In August, 2010 Cisco completed a study that included interviews with 80 enterprise IT decision makers (CIOs, CTOs, and infrastructure VPs) from 43 enterprises and public-sector organizations across industries throughout the US, Europe and India.  In addition, Cisco completed one-one-one interviews with 20 subject-matter experts.

The primary focus of the study was on the adoption of the public cloud for enterprise applications.  The report  Network Service Providers as Cloud Providers Survey Shows Cloud Provision Is a Bright Option can be downloaded here.

Key Take-Aways:

Cisco forecasts that the global market for Cloud Computing Service Revenue will be $43.8B by 2013, with SaaS contributing $29.5B, or 6 7%. Workload migration will also be the greatest in that segment as well.  The study provides additional insight into the IaaS and PaaS key success factors and the implications network service providers. (Click on image to expand it for ease of reading).

The study found that in the Business Processing segment, the greatest near-term opportunity is in SaaS-based ERP, which according to this study is predicted to reach a 13% adoption rate by 2013. This is consistent with International Data Corporation estimates of SaaS-based ERP adoption in comparable time periods.  ERP’s growth on the SaaS platform continues to be constrained by lack of Master Data Management (MDM) functionality, lack of a pervasive mobile APIs on the several SaaS ERP systems launched, and concerns over security of costing. ordering, production, and quality management data. (Click on image to expand it for ease of reading).

Test Driving An Amazon EC2 Micro Instance

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Last month Amazon Web Services launched Micro Instances for EC2, the lowest-cost instance type they have offered to date.  A Micro instance includes 613MB of memory and can support 32- and 64-bit platforms on both Linux and Windows operating systems.

The pricing begins at $0.02 per hour for Linux and $0.03 per hour for Windows.  In addition, a Micro instance supports Amazon Machine Image (AMI) for defining applications, data structures and databases in addition to configurations.  Amazon is also including a templated image to get up and running quickly with a Micro instance as well.

Greg Wilson, who is a Sr. Technical Evangelist for Adobe Systems, produced one of the best tutorials and test drives available, which is shown below. He has also written a blog entry regarding lessons learned which can be found at My dive into the world of Amazon EC2 and the new crazy cheap Micro instance.

Bottom line: Micro instances are going to shift cloud-based development away from compute- and data-intensive application development to smaller applications and web services.  Given the price point, the use of Micro instances could lead to a proliferation of new low-end, utilitarian-like applications as well.

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