Open (driving more commodity) will become key

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I was talking to a Wall Street firm that offers a suite of services that spans the investment spectrum, including investment management, research and trading, and investment servicing. They serve the needs of institutional investors with over $20 trillion (US) in assets under custody and administration, and close to $2 trillion (US) under management as of 2010. This Wall Street firm has a sophisticated IT group that understands the value of a private PaaS platform….allowing them to standardize application lifecycle management across a portfolio of over 300 applications.

One of their most important requirement in building a private Paas:


This means that the following solutions become candidates:

  • RedHat: With KVM for the virtual environment + JBOSS + Makara
  • Eucalyptus: Enterprise Edition + JBOSS container + homegrown PaaS middleware
  • OpenStack: Compute and Object Storage + JBOSS container + homegrown PaaS middleware
  • CloudStack Enterprise + JBOSS container + homegrown PaaS middleware
  • Enomaly: ECP + JBOSS container + homegrown PaaS middleware

There are a few others I haven’t mentioned (e.g. Abiquo) that are entering the space. Other proprietary solutions from Oracle, IBM, BMC, Novell, HP, Surgient, Nimbula, Platform Computing, etc. will not work. They are trying to avoid the main issues of:



Why not consider VMware vCloud Director and call it done? Answer:

We only have 10% of our platform on VSphere. It doesn’t address the majority of our infrastructure needs

There are plenty of open source options. However, when you take into account the additional factors, the selection becomes pretty narrow:

  • Ability to dynamically provision application frameworks
  • Ability to add, launch, and maintain application services
  • Ability to support heterogeneous environments including bare metal and virtualized (including AIX LPARs and Solaris Zones)
  • Extensible Service Provisioning Interface (API to IaaS platforms)
  • Application director logic (ability to deploy applications on any infrastructure without direct knowledge of infrastructure specifics)
  • Ability to integrate with legacy systems
  • Scalable
  • Modular

To be honest, there’s no solution that provides the above…yet. Either the open source initiatives like OpenStack will continue to add capabilities addressing big enterprise requirements, a larger opensource-focused enterprise will accelerate the development, and/or a large System Integrator and a few big enterprises will build it themselves. One thing is for sure….open will be a theme.

Other related articles:

  1. Cloud Prophecies: The Cloud Era
  2. SaaS offerings will dominate market (greater value with the end-user application)
  3. Private Cloud Will Drive the Bulk of Revenue in the datacenter (sorry Amazon)
  4. Platform as a Service = Application Focus = $True Value (IaaS is dead)
  5. Financial will drive commercial innovation in Private Cloud
  6. Government and Manufacturing will lead in Public Cloud (SaaS)
  7. Power of IT shifts to Application Developers
  8. System Integrators turn into Managed Service Providers (with Cloud)
  9. SIs are the gateway into large enterprise for new cloud vendors
  10. Open (driving more commodity) will become key For the Channel

Jim Kaskade

Jim Kaskade is a serial entrepreneur & enterprise software executive of over 36 years. He is the CEO of Conversica, a leader in Augmented Workforce solutions that help clients attract, acquire, and grow end-customers. He most recently successfully exited a PE-backed SaaS company, Janrain, in the digital identity security space. Prior to identity, he led a digital application business of over 7,000 people ($1B). Prior to that he led a big data & analytics business of over 1,000 ($250M). He was the CEO of a Big Data Cloud company ($50M); was an EIR at PARC (the Bell Labs of Silicon Valley) which resulted in a spinout of an AML AI company; led two separate private cloud software startups; founded of one of the most advanced digital video SaaS companies delivering online and wireless solutions to over 10,000 enterprises; and was involved with three semiconductor startups (two of which he founded, one of which he sold). He started his career engineering massively parallel processing datacenter applications. Jim has an Electrical and Computer Science Engineering degree from University of California, Santa Barbara, with an emphasis in semiconductor design and computer science; and an MBA from the University of San Diego with an emphasis in entrepreneurship and finance.