Why Verizon got it wrong…

The content is modified to fit your screen and for language for your comprehension… – The Agency :).

Short lazy post on what Verizon got wrong in its Cloud strategy. As always read it at your own risk. (Moreover this is based on zero actual customer interviews) – this is pontification that tries to convince you as if its reification.

Read this first: http://www.asymco.com/2010/10/28/re-framing-the-dichotomies-open-vs-closed-vs-integrated-vs-fragmented/

Italics are from the referenced article.

Interdependent architectures are the only way to rapidly and competitively improve the performance of not-good-enough systems. Modular architectures are the only way to squeeze profitability from more-than-good-enough commoditized technology.

Hasn’t compute and storage become more-than-good-enough? I would argue it has. Look at recent price drops.

Interdependency is often required to raise the performance of a new solution. In contrast, modularity is required to lower the cost of an over serving solution.

Compute and storage are not new services. Verizon might be targeting outside of compute and storage, but not sure if they know what they are targeting yet – I couldn’t tell.

Modular architectures are often the solution when interdependent architectures prove too costly.

Bingo. We are reaching a point where if you have large workloads, AWS is too costly and it is better to go with your own Cloud infrastructure or negotiate special enterprise pricing. The way you beat that is with modular architectures. For ex: using OpenStack.

So the winning strategy depends on detecting where a product lies in its march up the performance trajectory. Before it’s good enough, interdependent systems win. After it’s good enough, modular architecture wins.

I argue the compute and storage clouds are good enough. AWS has won in last 8 years, but it has become beyond good enough – what wins in next wave is modular architectures.

This is where I would put my dough on OpenStack or other open IAAS.


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