Cloud is the new hardware, SaaS is the new software!!

IBF Media (ibfmedia.com) has an event series called Capital Connection where startups are connected to VCs. I attended the Cloud Computing seminar at Ista Hotel in Bangalore on Feb 25th 2010.  (http://ibfmedia.com/cc2010.php).

Panel discussion format with Microsoft, Google, Fidelity, Kleiner, Helion and a 2 startups http://www.orangescape.com/ and http://www.impelcrm.in/.  (suprisingly no one from Amazon was invited!!)Takeaways from the panel discussion

- "Cloud is the new hardware, SaaS is the new software" - by Kishore - CEO of Impelcrm.in

- Cloud Based Architecture  =  IaaS (Infra as a Service) + PaaS (Platform as a service) + SaaS (Software as a Service)

- Most Enterprise Apps may not need the rapid scale up and scale down that the cloud offers. But the ability to switch off when no one is using an enterprise app may be of use. But enterprises might like to move commodity services like email onto the cloud for manageability reasons. Consumer applications and customer facing apps need the cloud since they experience rapid scale ups and scale downs.

- All enterprise apps may not move to the cloud - owing to security/licensing/user experience reasons. But no reason why your enterprise email and intranet should not be on the cloud. Google Apps for the enterprise has been bought by a couple of Fortune 500 companies - so there is no good reason why your company cannot use Gmail (paid enterprise version) for its enterprise use. Orangescape - Chennai based startup - does not own a single server and they operate completely on the cloud. Includes software development, file storage, email, intranet, a few enterprise apps.

- Security is probably a lesser concern on the Cloud than on your office infrastructure. You can trust cloud providers security processes better than your own limited expertise in this area - a cloud providers information security procedures will most likely be much better than your own. Also have you factored for the information security issues when a laptop or pen drive is lost? And since there are so many apps from so many companies on the cloud, the ability to hack your specific data is probably harder.

- Processing power may not move completely to the cloud with dumb terminals on your desk. Some apps need a huge amount of local processing for a richer user experience. Connectiivty speeds are not growing at the pace at which processing power on the client is growing - so the client may continue to be fat. But the processing power of the cloud may enable new custom devices - a wear on display? which only displays and everything else happens on the cloud -  a TV metaphor?

- The cloud allows every kid on the  block to write and put up an app and to scale service. This makes the application marketplace very competitive. At the same time, since everyone can deploy and scale an app, the customer may not value the app as much as other aspects of business.

- Is cloud the new mainframe? Will it restrict innovation? - no. The cloud is not the new mainframe and it will not restrict innovation. Because the cloud is 0 capex and accessible to virtually anyone with a credit card. The mainframe was controlled since it involved a huge amount of capex and it required highly custom coding.

- Will we now have to code for everyone of the cloud platforms - Amazon, Google, SalesForce.com, Microsoft Azure? Yes, it is unlikely there will be just one standard for apps on the cloud.

The registration fee was a bit on the higher side but the food was good - pigged on goan fish curry. And the beer was flowing. No complaints. Only wish Amazon was there. After all, they are the kings of the cloud.