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Cloud IaaS feature sets and target buyers

As I noted previously, cloud IaaS is a lot more than just self-service VMs. As service providers strive to differentiate themselves from one another, they enter a software-development rat race centered around “what other features can we add to make our cloud more useful to customers”.

However, cloud IaaS providers today have to deal with two different constituencies — developers (developers are the face of business buyers) and IT Operations. These two groups have different priorities and needs, and sometimes even different use cases for the cloud.

IaaS providers may be inclined to cater heavily towards one group or the other, and selectively add features that are critical to the other group, in order to ease buying frictions. Others may decide to try to appeal to both — a strategy likely to be available only to those with a lot of engineering resources at their disposal. Over time (years), there will be convergence in the market, as all providers reach a certain degree of feature parity on the critical bits, and then differentiation will be on smaller bits of creeping featurism.

Take a feature like role-based access control (RBAC). For the needs of a typical business buyer — where the developers are running the show on a project basis — RBAC is mostly a matter of roles on the development team, likely in a fairly minimalistic way, but fine-grained security may be desired on API keys so that any script’s access to the API is strictly limited to just what that script needs to do. For IT Operations, though, RBAC needs tend to get blown out into full-fledged lab management — having to manage a large population of users (many of them individual developers) who need access to their own pools of infrastructure and who want to be segregated from one another.

Some providers like to think of the business buyer vs. IT Operations buyer split as a “new applications” vs. “legacy applications” split instead. I think there’s an element of truth to that, but it’s often articulated as “commodity components that you can self-assemble if you’re smart enough to know how to architect for the cloud” vs. “expensive enterprise-class gear providing a safe familiar environment”. This latter distinction will become less and less relevant as an increasing number of providers offer multi-tiered infrastructure at different price points within the same cloud. Similarly, the “new vs. legacy apps” distinction will fade with feature-set convergence — a broad-appeal cloud IaaS offering should be able to support either type of workload.

But the buying constituencies themselves will remain split. The business and IT will continue to have different priorities, despite the best efforts of IT to try to align itself closer to what the business needs.

Private clouds aren’t necessarily more secure

Eric Domage, an analyst over at IDC, is being quoted as saying, “The decision in the next year or two will only be about the private cloud. The bigger the company, the more they will consider the private cloud. The enterprise cloud is locked down and totally managed. It is the closest replication of virtualisation.” The same article goes on to quote Domage as cautioning against the dangers of the public cloud, and, quoting the article: “He urged delegates at the conference to ‘please consider more private cloud than public cloud.'”

I disagree entirely, and I think Domage’s comments ignore the reality of what is going on within enterprises, both in terms of their internal private cloud initiatives, as well as their adoption of public cloud IaaS. (I assume Domage’s commentary is intended to be specific to infrastructure, or it would be purely nonsensical.)

While not all IaaS providers build to the same security standards, nearly all build a high degree of security into their offering. Furthermore, end-to-end encryption, which Domage claims is unavailable in public cloud IaaS, is available in multiple offerings today, presuming that it refers to both end-to-end network encryption, along with encryption of both storage in motion and storage at rest. (Obviously, computation has to occur either on unencrypted data, or your app has to treat encrypted data like a passthrough.)

And for the truly paranoid, you can adopt something like Harris Trusted Cloud — private or public cloud IaaS built with security and compliance as the first priority, where each and every component is checked for validity. (Wyatt Starnes, the guiding brain behind this, founded Tripwire, so you can guess where the thinking comes from.) Find me an enterprise that takes security to that level today.

I’ve found that the bigger the company, the more likely they are to have already adopted public cloud IaaS. Yes, it’s tactical, but their businesses are moving faster than they can deploy private clouds, and the workloads they have in the public cloud are growing every day. Yes, they’ll also build a private cloud (or in many cases, already have), but they’ll use both.

The idea that the enterprise cloud is “locked down and totally managed” is a fantasy. Not only do many enterprises struggle with managing the security within private clouds, many of them have practically surrendered control to the restless natives (developers) who are deploying VMs within that environment. They’re struggling with basic governance, and often haven’t extended their enterprise IT operations management systems successfully into that private cloud. (Assuming, as the article seems to imply, that private cloud is being used to refer to self-service IaaS, not merely virtualized infrastructure.)

The head-in-the-sand “la la la public cloud is too insecure to adopt, only I can build something good enough” position will only make an enterprise IT manager sound clueless and out of touch both with reality and with the needs of the business.

Organizations certainly have to do their due diligence — hopefully before, and not after, the business is asking what cloud infrastructure solutions can be used right this instant. But the prudent thing to do is to build expertise with public cloud (or hosted private cloud), and for organizations which intend to continue running data centers long-term, simultaneously building out a private cloud.

Amazon and the power of default choices

Estimates of Amazon’s revenues in the cloud IaaS market vary, but you could put it upwards of $1 billion in 2011 and not cause too much controversy. That’s a dominant market share, comprised heavily of early adopters but at this point, also drawing in the mainstream business — particularly the enterprise, which has become increasingly comfortable adopting Amazon services in a tactical manner. (Today, Amazon’s weakness is the mid-market — and it’s clear from the revenue patterns, too, that Amazon’s competitors are mostly winning in the mid-market. The enterprise is highly likely to go with Amazon, although it may also have an alternative provider such as Terremark for use cases not well-suited to Amazon.)

There are many, many other providers out there who are offering cloud IaaS, but Amazon is the brand that people know. They created this market; they have remained synonymous with it.

That means that for many organizations that are only now beginning to adopt cloud IaaS (i.e., traditional businesses that already run their own data centers), Amazon is the default choice. It’s the provider that everyone looks at because they’re big — and because they’re #1, they’re increasingly perceived as a safe choice. And because Amazon makes it superbly easy to sign up and get started (and get started for free, if you’re just monkeying around), there’s no reason not to give them a whirl.

Default choices are phenomenally powerful. (You can read any number of scientific papers and books about this.) Many businesses believe that they’ve got a low-risk project that they can toss on cloud IaaS and see what happens next. Or they’ve got an instant need and no time to review all the options, so they simply do something, because it’s better than not doing something (assuming that the organization is one in which people who get things done are not punished for not having filled out a form in triplicate first).

Default choices are often followed by inertia. Yeah, the company put a project on Amazon. It’s running fine, so people figure, why mess with it? They’ve got this larger internal private cloud story they’re working on, or this other larger cloud IaaS deal they’re working on, but… well, they figure, they can migrate stuff later. And it’s absolutely true that people can and do migrate, or in many cases, build a private cloud or add another cloud IaaS provider, but a high enough percentage of the time, whatever they stuck out there remains at Amazon, and possibly begins to accrete other stuff.

This is increasingly leaving the rest of the market trying to pry customers away from a provider they’re already using. It’s absolutely true that Amazon is not the ideal provider for all use cases. It’s absolutely true that any number of service providers can tell me endless stories of customers who have left Amazon for them. It’s probably true, as many service providers claim, that customers who are experienced with Amazon are better educated about the cloud and their needs, and therefore become better consumers of their next cloud provider.

But it does not change the fact that Amazon has been working on conquering the market one developer at a time, and that in turn has become the bean-counters in business saying, hey, shouldn’t we be using these Amazon guys?

This is what every vendor wants: For the dude at the customer to be trying to explain to his boss why he’s not using them.

This is increasingly my client inquiry pattern: Client has decided they are definitively not using Amazon (for various reasons, sometimes emotional and sometimes well thought out) and are looking at other options, or they are looking at cloud IaaS and are figuring that they’ll probably use Amazon or have even actually deployed stuff on Amazon (even if they have done zero reading or evaluation). Two extremes.

Cloud IaaS is a lot more than just self-service VMs

One year ago, when we did our 2010 hosting/cloud Magic Quadrant, you were doing pretty well as a service provider if you had a bare-minimum cloud IaaS offering — a service in which customers could go in, push buttons and self-service provision and de-provision virtual machines. There were providers with more capabilities than that, but by and large, that was the baseline of an acceptable offering.

Today, a year later, that says, yup, you’ve got something — but that’s all. The market has moved on with astonishing speed. Bluntly, the feat of provisioning a VM is only so impressive, and doing it fast and well and with a minimum of customer heartache is now simply table stakes in the game.

If you really want to deliver value to a customer, as a service provider, you’ve got to be asking yourself what you can do to smooth the whole delivery chain of IT Operations management and everything the customer needs to build out their solution on your IaaS platform. That’s true whether your audience is developers, devops, or IT operations.

Think: Hierarchical management of users and resources, RBAC for both users and API keys, governance (showback/chargeback, quotas/budgets, leases, workflow-driven provisioning), monitoring (from resources to APM), auto-scaling (both horizontal and vertical), complex network configurations, multi-data-center replication, automated patch management, automated capabilities to support regulatory compliance needs, sophisticated service catalog capabilities that include full deployment templates and are coupled with on-demand software licensing, integration with third-party IT operations management tools… and that’s only the start.

If you are in the cloud IaaS business and you do not have an aggressive roadmap of new feature releases, you are going to be behind the eight-ball — and you should picture it as the kind of rolling boulder that chases Indiana Jones. It doesn’t matter whether your competitor is Amazon or one of the many providers in the VMware ecosystem. Software-defined infrastructure is a software business, and it moves at the speed of software. You don’t have to be Amazon and compete directly with their feature set, but you had better think about what value you can add that goes beyond getting VMs fast.

Managed Hosting and Cloud IaaS Magic Quadrant

We’re wrapping up our Public Cloud IaaS Magic Quadrant (the drafts will be going out for review today or tomorrow), and we’ve just formally initiated the Managed Hosting and Cloud IaaS Magic Quadrant. This new Magic Quadrant is the next update of last year’s Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting.

Last year’s MQ mixed both managed hosting (whether on physical servers, multi-tenant virtualized “utility hosting” platforms, or cloud IaaS) as well as the various self-service cloud IaaS use cases. While it presented an overall market view, the diversity of the represented use cases meant that it was difficult to use the MQ for vendor selection.

Consequently, we added the Public Cloud IaaS MQ (covering self-service cloud IaaS), and retitled the old MQ to “Managed Hosting and Cloud IaaS” (covering managed hosting and managed cloud IaaS). They are going to be two dramatically different-looking MQs, with a very different vendor population.

The Managed Hosting and Cloud IaaS MQ covers:

  • Managed hosting on physical servers
  • Managed hosting on a utility hosting platform
  • Managed hosting on cloud IaaS
  • Managed hybrid hosting (blended delivery models)
  • Managed Cloud IaaS (at minimum, guest OS is provider-managed)

Both portions of the market are important now, and will continue to be important in the future, and we hope that having two Magic Quadrants will provide better clarity.

There’s no such thing as a “safe” public cloud IaaS

I’ve been trialing cloud IaaS providers lately, and the frustration of getting through many of the sign-up processes has reminded me of some recurring conversations that I’ve had with service providers over the past few years.

Many cloud IaaS providers regard the fact that they don’t take online sign-ups as a point of pride — they’re not looking to serve single developers, they say. This is a business decision, which is worth examining separately (a future blog post, and I’ve already started writing a research note on why that attitude is problematic).

However, many cloud IaaS providers state their real reason for not taking online sign-ups, or of having long waiting periods to actually get an account provisioned (and silently dropping some sign-ups into a black hole, whether or not they’re actually legitimate), is that they’re trying to avoid the bad eggs — credit card fraud, botnets, scammers, spammers, whatever. Some cloud providers go so far as to insist that they have a “private cloud” because it’s not “open to the general public”. (I consider this lying to your prospects, by the way, and I think it’s unethical. “Marketing spin” shouldn’t be aimed at making prospects so dizzy they can’t figure out your double-talk. The industry uses NIST definitions, and customers assume NIST definitions, and “private” therefore implies “single-tenant”.)

But the thing that worries me is that cloud IaaS providers claim that vetting who signs up for their cloud, and ensuring that they’re “real businesses”, makes their public, multi-tenant cloud “safe”. It doesn’t. In fact, it can lure cloud providers into a false sense of complacency, assuming that there will be no bad actors within their cloud, which means that they do not take adequate measures to defend against bad actors who work for a customer — or against customer mistakes, and most importantly, against breaches of a customer’s security that result in bad eggs having access to their infrastructure.

Cloud providers tell me that folks like Amazon spend a ton of money and effort trying to deal with bad actors, since they get tons of them from online sign-ups, and that they themselves can’t do this, either for financial or technical reasons. Well, if you can’t do this, you are highly likely to also not have the appropriate alerting to see when your vaunted legitimate customers have been compromised by the bad guys and have gone rogue; and therefore to respond to it immediately and automatically to stop the behavior and thereby protect your infrastructure and customers; and to hopefully automatically, accurately, and consistently do the forensics for law enforcement afterwards. Because you don’t expect it to be a frequent problem, you don’t have the paranoid level of automatic and constant sweep-and-enforce that a provider like Amazon has to have.

And that should scare every enterprise customer who gets smugly told by a cloud provider that they’re safe, and no bad guys can get access to their platform because they don’t take credit-card sign-ups.

So if you’re a security-conscious company, considering use of multi-tenant cloud services, you should ask prospective service providers, “What are you doing to protect me from your other customers’ security problems, and what measures do you have in place to quickly and automatically detect and eliminate bad behavior?” — and don’t accept “we only accept upstanding citizens like yourself on our cloud, sir” as a valid answer.

In cloud IaaS, developers are face of business buyers

I originally started writing this blog post before Forrester’s James Staten made a post called “Public Clouds Prove I&O Pros Are From Venus And Developers Are From Mars“, and reading made me change this post into a response to his, as well as covering the original point I wanted to make.

In his post, James argues that cloud IaaS offerings are generally either developer-centric or I&O-centric, which leads to an emphasis on either self-service or managed services, with different feature-set priorities. Broadly speaking, I don’t disagree with him, but I think there’s a crucial point that he’s missing (or at least doesn’t mention), that is critical for cloud IaaS providers to understand.

Namely, it’s this: Developers are the face of business buyers.

We can all agree, I’m sure, that self-service cloud IaaS of the Amazon variety has truly empowered developers at start-ups and small businesses, who previously didn’t have immediate access to cheap infrastructure. Sometimes these developers are simply using IaaS as a substitute for having to get hardware and colocation. Sometimes they’re taking advantage of the unique capabilities exposed by programmatic access to infrastructure. Sometimes they’re just writing simple Web apps the same way they always have. Sometimes they’re writing truly cloud-native applications. Sometimes they really need to match their capacity to their highly-variable needs. Sometimes they have steady-state infrastructure. You can’t generalize about them too broadly. But their reasons for using the cloud are pretty clear.

But what’s driving developers in well-established businesses, with IT Operations organizations that have virtualized infrastructure and maybe even private cloud, to put stuff in the public cloud?

It’s simple. They’ve asked for something and IT Operations can’t give it to them in the timeframe that they need. Or IT Operations is such a pain to deal with that they don’t even want to ask. (Yes, sometimes, they want programmatic infrastructure, have highly variable capacity needs, etc. Then they think like start-ups. But this is a tiny, tiny percentage of projects in traditional businesses, and even a small percentage of those that use cloud IaaS.)

And why do they want something? Well, it’s because the business has asked the applications development group to develop a thingy that does X, and the developer is trotting off to try to write X, only he can’t actually do that until IT Operations can give him a server on which to do X, and possibly some other stuff as well, like a load balancer.

So what happens is you get a developer who goes back to a business manager and says, “Well, I could deliver you the code for X in six weeks, except IT Operations tells me that they can’t get around to giving me a server for it for another three weeks.” (In some organizations, especially ones without effective virtualization, that can be months.) The business manager says, “That’s unacceptable. We can’t wait that long.” And the developer sighs and says, “Don’t worry about it. I’ll just take care of it.” And then some cloud IaaS provider, probably one who’s able to offer infrastructure, right now, gets a brand-new customer. This is what businesses mean when they talk about “agility” from the cloud.

Maybe the business has had this happen enough that Enterprise Architecture has led the evaluation of cloud IaaS providers, chosen one or more, set down guideliens for their use, and led the signing of some sort of master services agreement with those providers. Or maybe this is the first sign-up. Either way, developers are key to the decision-making.

When it comes to go into production, maybe IT Operations has its act together, and it comes back into the business’s data center. Maybe it has to move to another external provider — IT Operations has sourced something, or Enterprise Architecture has set a policy for where particular production workloads must run. So maybe it goes to traditional managed hosting, hybrid hosting, or a different cloud provider. Maybe it stays with the cloud the developer chose, though. There’s a lot to be said for incumbency.

But the key thing is this: In SaaS, business buyers are bypassing IT to get their own business needs met. In IaaS, business buyers are doing the same thing — it’s just that it’s the developer that is fronting the sourcing, and is therefore making the decision of when to go cloud and who to use when they do, at least initially.

So if you’re a cloud provider and you say, “We don’t serve individual developers” (which, in my experience, you’ll generally say with a sneer), you are basically saying, “We don’t care about the business buyer.” Which is a perfect valid sales strategy, but you should keep in mind that the business controls two-thirds of cloud spending (so IT Operations holds the purse-strings only a third of the time), according to Gartner’s surveys. You like money, don’t you?

There are many, many more nuances to this, of course (nuances to be explored in a research note for Gartner clients, naturally, because there’s only so much you get for free). But it leads to the conclusion that you must be able to sell to both developers and IT Operations, regardless of the nature of your offering, unless you really want to limit your market opportunity. And that means that the roadmaps of leading providers will be convergent to deliver the features needed by both constituencies.

IT Operations and button-pushing

The fine folks at Nodeable gave me an informal introductory briefing today; they’ve got a pretty cool concept for a cloud-oriented monitoring and management SaaS-based tool that’s aimed at DevOps.

I’ve been having stray thoughts on DevOps and the future of IT Operations in the couple of hours that have passed since then, and reflecting on the following problem:

At an awful lot of companies, IT Operations, especially lower-level folks, are button-pushing monkeys — specifically, they are people who know how to use the vendor-supplied GUI to perform particular tasks. They may know the vendor-recommended ways to do things with a particular bit of hardware or software. But only a few of them have architect-level knowledge, the deep understanding of the esoterica of systems and how this stuff is actually built and engineered. (Some of this is a reflection of education; a lot of IT Operations people don’t come from a computer science background, but have what they’ve needed to know on the job.)

Today’s DevOps person is likely to have a skillset that we used to call systems programming. They understand systems architecture, they understand operating systems, they can write system-level code, including the scripting necessary for automation. The programmatic access to infrastructure exemplified by cloud IaaS providers has moved this up a layer of abstraction, so that you don’t have to be a deep-voodoo guy to do this kind of thing.

We’re moving towards a world where you have really low-level button-pushers — possibly where the button-pushing is so simple that you don’t need a specialist to do it any longer, anyone reasonably technical can do it — and senior architects whoo design things, and systems programmers who automate things. Whether those systems programmers work in application development and are “DevOps”, or whether those systems programmers work in IT Operations and just happen to be systems guys who program (mostly scripting), doesn’t really matter — the era of the button-pusher is drawing towards its close either way, at least for organizations who are going to efficiently increase IT Operations efficiency.

I want to share a story. It is, in some ways, a story about cruelty and unprofessionalism, but it’s funny in its own way.

About fifteen years ago, I was working as an engineer at Digex (the first real managed hosting company). We had a pretty highly skilled group of engineers there, and we never did anything using a GUI. We had hundreds of customers on dedicated Sun servers, and you’d either SSH into the systems or, in a pinch, go to the data center and log in on console. We were also the kind of people who would fix issues by making kernel modifications — for instance, the day that the SYN flood attack showed up, a bunch of customers went down hard, meaning that we could not afford to wait for Sun to come up with a patch, since we had customer SLAs to meet, so one of our security engineers rewrote the kernel’s queueing code for TCP accepts.

We were without a manager for some time, and they finally hired a guy who was supposedly a great Sun sysadmin. He didn’t actually get a technical interview, but he had a good work history of completed projects and happy teams and so forth. He was supposed to be both the manager and the technical lead for the team.

The problem was that he had no idea how to do anything that wasn’t in Sun’s administrator GUI. He didn’t even know how to attach a console cable to a server, much less log in remotely to a system. Since we did absolutely nothing with a GUI, this was a big problem. An even bigger problem was that he didn’t understand anything about the underlying technologies we were supporting. If he had a problem, he was used to calling Sun and having them tell him what to do. This, clearly, is a big problem in a managed hosting environment where you’re the first line of support for your customers, who may do arbitrary wacky things.

He also worked a nine-to-five day at a startup where engineers routinely spent sixteen hours at work. His team, and the other engineers at the company, had nothing but contempt for him. And one night, having dinner at 10 pm as a break before going right back into work, someone had an idea.

“Let’s recompile his kernel without mouse support.” (Like all the engineers, he had a Sun workstation at his desk.)

And so when he came to work the next morning, his mouse didn’t work — and every trace of the intrusion had been covered, thanks to the complicity of one of the security engineers.

Someone who had an idea of what he was doing wouldn’t have been phazed; they’d have verified the mouse wasn’t working, then done an L1-A to put the workstation into PROM mode, and easily done troubleshooting from there (although admittedly, nobody thinks, “I wonder if somebody recompiled my kernel without mouse support after I went home last night”). This poor guy couldn’t do anything other than pick up his mouse to make sure the underside hadn’t gotten dirty. It turned out that he had no idea how to do anything with the workstation if he couldn’t log in via the GUI.

It proved to be a remarkably effective demonstration to management that this guy was a yahoo and needed to be fired. (Fortunately, there were plenty of suspect engineers, and management never found out who was responsible. Earl Galleher, who ran that part of the business at the time, and is the chairman at Basho now, probably still wonders… It wasn’t me, Earl.)

But it makes me wonder what is the future of all the GUI masters in IT Operations, because the world is evolving to be more like the teams that I had before I came to Gartner — systems programmers with strong systems and operations skills, who could also code.

DevOps: Now you know how to deal with the IT Operations guy who can only use a GUI…

Common service provider myths about cloud infrastructure

We’re currently in the midst of agenda planning for 2012, which is a fancy way to say that we’re trying to figure out what we’re going to write next year. Probably to the despair of my managers, I am almost totally a spontaneous writer, who sits down on a plane and happens to write a research note on whatever it is that’s occurred to me at the moment. So I’ve been pondering what to write, and decided that I ought to tap into the deep well of frustration I’ve been feeling about the cloud IaaS market over the last couple of months.

Specifically, it started me in on thinking about the most common fallacies that I hear from current cloud IaaS providers, or from vendors who are working on getting into the business. I think each of these things is worthy of a research note (in some cases, I’ve already written one), but they’re also worth a blog post series, because I have the occasional desire to explode in frustrated rants. Also, when I write research, it’s carefully polite, thoughtfully-considered, heavily-nuanced, peer-reviewed documents that will run ten to twenty pages and be vaguely skimmed, often by mid-level folks in product marketing. If I write a blog post, it will be short and pointed and might actually get the point through to people, especially the executives who are more likely to read my blog than my research.

So, here’s the succinct list to be explored in further posts. These are things I have said to vendor clients in inquiries, in politely measured terms. These are the blunt versions:

Doing this cloud infrastructure thing is hard and expensive. Yes, I know that VMware told you that you could just get a VCE Vblock, put VMware’s cloud stack on it (maybe with a little help from VMware consulting), and be in business. That’s not the case. You will be making a huge number of engineering decisions (most of which can screw you in a variety of colorful ways, either immediately or down the road). You will be integrating a ton of tools and doing a bunch of software development yourself, if you want to have a vaguely competitive offering for anything other than the small business migrating from VPS. Ditto if you use Citrix (Cloud.com), OpenStack, or whomever. Even with professional services to help you. And once you have an offering, you will be in a giant competitive rat race where the best players innovate fast, and the capabilities gap widens, not closes. If you’re not up to it, white-label, resell, or broker instead.

There is more to the competition than Amazon, but ignore Amazon at your peril. Sure, Amazon is the market goliath, but if your differentiation is “we’re not like Amazon, we’re enterprise-class!”, you’re now competing against te dozens of other providers who also thought that would be a clever market differentiation. Not to mention that Amazon already serves the enterprise, and wants to deepen its inroads. (Where Amazon is hurting is the mid-market, but there’s tons of competition there, too.) Do you seriously think that Amazon isn’t going to start introducing service features targeted at the enterprise? They already have, and they’re continuing to do so.

Not everything has to be engineered to five nines of availability. Many businesses, especially those moving legacy workloads, need reliable, consistently high-performance infrastructure. Howeve, most businesses shouldn’t get infrastructure as one-size-fits-all — this is part of what is making internal data centers expensive. Instead, cloud infrastructure should be tiered — one management portal, one API, multiple levels of service at different price points. “Everything we do is enterprise-class” unfortunately implies “everything we do is expensive”.

Your contempt for the individual developer hugely limits your sales opportunities. Developers are the face of the business buyer. They are the way that cloud IaaS makes inroads into traditional businesses, including the largest enterprises. This is not just about start-ups or small businesses, or about the companies going DevOps.

Prospective customers will not call Sales when your website is useless. Your lack of useful information on your website doesn’t mean that eager prospects will call sales wanting to know what wonderful things you have. Instead, they will assume that you suck, and you don’t get the cloud, and you are hiding what you have because it’s not actually competitive, and they will move on to the dozens of other providers trying to sell cloud IaaS or who are pretending to do so. Also, engineers hate talking to salespeople. Blind RFPs are common in this market, but so is simply signing up with a provider that doesn’t make it painful to get their service.

Just because you don’t take online sign-ups doesn’t mean your cloud is “safe”. Even if you only take “legitimate businesses”, customers make mistakes and their infrastructure gets compromised. Sure, your security controls might ensure that the bad guys don’t compromise your other customers. But that doesn’t mean you won’t end up hosting command-and-control for a botnet, scammers, or spammers, inadvertently. Service providers who take credit card sign-ups are professionally paranoid about these things; buyers should beware providers who think “only real businesses like you can use our cloud” means no bad guys inside the walls.

Automation, not people, is the future. Okay, you’re more of a “managed services” kind of company, and self-service isn’t really your thing. Except “managed services” are, today, basically a codeword for “expensive manual labor”. The real future value of cloud IaaS is automating the heck out of most of the lower-end managed services. If you don’t get on that bandwagon soon, you are going to eventually stop being cost-competitive — not to mention that automation means consistency and likely higher quality. There’s a future in having people still, but not for things that are better done by computers.

Carriers won’t dominate the cloud. This opinion is controversial. Of course, carriers will be pretty significant players — especially since they’ve been buying up the leading independent cloud IaaS providers. But many other analyst firms, and certainly the carriers themselves, believe that the network, and the ability to offer an end-to-end service, will be a key differentiator that allows carriers to dominate this business. But that’s not what customers actually want. They want private networking from their carrier that connects them to their infrastructure — which they can get out of a carrier-neutral data center that is a “cloud hub”. Customers are better off going into a cloud hub with a colocated “cloud gateway” (with security, WAN optimization, etc.), cross-connecting to their various cloud providers (whether IaaS, PaaS, SaaS, etc.), and taking one private network connection home.

Stay tuned. More to come.

Trialing a lot of cloud IaaS providers

I’ve just finished writing the forthcoming Public Cloud IaaS Magic Quadrant (except for some anticipated tweaks when particular providers come back with answers to some questions), which has twenty providers. Although Gartner normally doesn’t do hands-on evaluations, this MQ was an exception, because the easiest way to find out if a given service can do X, was generally to get an account, and attempt to do X. Asking the vendor sometimes requires a bunch of back-and-forth, especially if they don’t do X but and are weaseling their reply, forcing you to ask a set of increasingly narrow, specific questions until you get a clear answer. Also, I did not want to constantly bombard the vendors with questions, since, come MQ time, it tends to result in a firedrill whether or not you intended the question as urgent or even particularly important. (I apologize for the fact that I ended up bombarding many vendors with questions, anyway.)

I’ve used cloud services before, of course, and I am a paying customer of two cloud IaaS providers and a hosting provider, for my personal hobbies. But there’s nothing quite like a blitzkrieg through this many providers all at once. (And I’m not quite done, because some providers without online sign-up are still getting back to me on getting a trial account.)

In the course of doing this, I have had some great experiences, some mediocre experiences, and some “you really sell this and people buy it?” experiences. I have online chatted with support folks for basic questions not covered in the documentation (like “if I stop this VM, does it stop billing me, or not?” which varies from provider to provider). I have filed numerous support tickets (for genuine issues, not for evaluation purposes). I have filed multiple bug reports. I have read documentation (sometimes scanty to non-existent). I have clicked around interfaces, and I have actually used the APIs (working in Python, and in one case, without using a library like libcloud); I have probably weirded out some vendors by doing these things at 2 am, although follow-the-sun support has been intriguing. Those of you who follow me on Twitter (@cloudpundit) have gotten little glimpses of some of these things.

Ironically, I have tried to not let these trials unduly influence my MQ evaluations, except to the extent that these things are indisputably factual — features, availability of documentation, etc. But I have taken away strong impressions about ease of use, even for just the basic task of provisioning and de-provisioning a virtual machine. There is phenomenal variation in ease of use, and many providers could really use the services of a usability expert.

Any number of these providers have made weird, seemingly boneheaded decisions in their UI or service design, for which there’s no penalty to anything in MQ scoring, but did occasionally make me stare and go, “Seriously?”

I’m reluctant to publicly call out vendors for this stuff, so I’ll pick just one example from a vendor that has open online sign-up, where it’s not a private issue that hasn’t been raised on a community forum, and they’re not the sort of vendor (I hope) to make angry calls to Gartner’s Ombudsman demanding that I take this post down. (Dear OpSource folks: Think of this as tough love, and I hope Dimension Data analyst relations doesn’t have conniptions.)

So, consider: OpSource has pre-built VMs, that come with a set amount of compute and RAM, bundled with an OS. Great. Except that you can’t alter a bundle at the time of provisioning. So, say, if I want their Ubuntu image, it comes only in a 2 CPU core config. If I want only 1 core, I have to provision that image, wait for the provision to finish, go in and edit the VM config to reduce it to 1 core, and then wait for it to restart. After I go through that song and dance once, I can clone the config… but it boggles the mind why I can’t get the config I want from the start. I’m sure there’s a good technical reason, but the provider’s job is to mask such things from the user.

The experience has also caused me to wholly revise my opinion of vCloud Director as a self-service tool for the average goomba who wants a VM. I’d always seen vCD as a demo being given by experts, where it looked like despite the pile of complex functionality, it was easy enough to use. The key thing is that the service catalogs were always pre-populated in those demos. If you’re starting from the bare vCD install that a vCloud Powered provider is going to give you, you face a daunting task. Complexity is necessary for that level of fine-grained functionality, but it’s software that is in desperate need of pre-configuration from the service provider, and quite possibly an overlay interface for Joe Average Developer.

Now we’ll see if my bank freezes my credit card for possible fraud, when I’m hit with a dozen couple-of-cents-to-a-few-dollar charges come the billing cycle — I used my personal credit card for this, not my corporate card, since Gartner doesn’t actually reimburse for this kind of work. Ironically, once I spent a bunch of time on these sites, Google and the other online ad networks have started displaying ads that consist of nothing but cloud providers, including “click here for a free trial” or “$50 credit” or whatever, but of course you can’t apply those to existing accounts, which makes every little, “hey, you’ve spent another ten cents provisioning and de-provisioning this VM” charge which I’m noting in the back of my head now, into something which will probably annoy me in aggregate come the billing cycle.

Some things, you just can’t know until you try it yourself.