UPDATED 15:48 EDT / MAY 02 2013

Software’s Eating the World : Amazon’s Appetite Grows for Enterprise

Switch Communications EVP Jason Mendenhall provided his take on cloud computing, Amazon Web Services and Big Data in the most recent Peer Incite meeting, a monthly event that gives the Wikibon community an opportunity discuss the hottest topics in enterprise IT. ServicesAngle editor Bert Latamore included the main highlights from the debate in the latest edition of the Wikibon Newsletter, entitled “Software is Eating the World: Will Amazon Eat Enterprise IT Infrastructure?”

Wikibon co-founder and chief analyst Dave Vellante posted a follow-up piece to the meeting in which he stressed that while Amazon may be 800 pound gorilla in the room, but that in itself does not make it unstoppable. He wrote that CIOs must recognize that the cloud is not all about cost reduction, and emphasized that AWS is not synonymous with cloud.

Scott Lowe, the founder of The 1610 Group, reiterated the point about the one-for-all approach not being viable for most enterprises in a separate article. He highlighted that CIOs need to look at competing providers such as Rackspace, Switch, and ViaWest, and noted the importance of having an effective IT governance framework.

Wikibon CTO David Floyer provided his own perspective on the topics Mendehall brought up during the meeting in an alert entitled “Keep Your Own Data Close and Your Competitors Data Closer”.  He wrote about his prediction for flash storage, and explained the role of so-called mega data centers such as Switch’s SuperNap collocation facility in Las Vegas.

In his entry, analyst Stu Miniman outlined the four areas in which cloud providers can differentiate from Amazon: cost, performance, control and support.

Parity Research & Wikibon contributor Gary MacFadden focused on the benefits of collocation, and outlined the six factors which can provide a “measurable competitive advantage” that ITOs may not be able to realize in the cloud.

Lastly, Jeff Kelly explained the reasoning behind Big Data analytics in the cloud. He wrote that bringing petabytes of external data on-premise doesn’t make any sense when the alternative is moving just a few terabytes of internal data to the cloud.


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