Where SOA Meets Cloud

David Linthicum

For SMBs, Cloud Computing is a No-Brainer

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According to a Spiceworks survey of over 1,500 IT professionals, the smaller the company, the more willing they are to adopt cloud computing technology.  38 percent report that they plan to adopt cloud computing within the next 6 months.

 

While we focus on cloud computing adoption by the Global 2000 and the government, the reality is that small businesses have been on the cloud for years, and continue to fuel the largest and most rapid growth around the cloud.  They were the first to adopt SaaS earlier this decade, driving the rapid growth of SaaS providers such as Salesforce.com.  Now SMBs are looking to drive much of their IT into the cloud, largely around the cost benefits. 

 

While the larger enterprises and government agencies attempt to sort out issues around security, privacy, compliance, and, that all-important control, the decision to go cloud for small businesses is a no-brainer.  They can't afford traditional IT, in many cases.  Lacking the "cloud option," most SMBs would do without core enterprise systems such as CRM, ERP, calendar sharing, e-mail, and even business intelligence.  Now, all of these can be had out of the cloud for a few dollars a day.

 

In addition, the availability of clouds that provide IaaS, such as Amazon Web Services, GoGrid, and Rackspace, have opened the gates for small technology-oriented startups to rent virtual data centers and avoid the million or so dollars needed to make capital expenditures around hardware, software, and renting data center space.  Many tech startups have no infrastructure to speak of on-premise, and leverage the savings in capital to drive faster and more effective product development efforts.  When I was running small startups, you figured a million dollars minimum just to get ready for development.  With the cloud computing options today, that's money you can leverage for other purposes.

 

What's interesting about all this is that many cloud computing providers are not paying much attention to the emerging SMB market.  I think many providers assume they will come to cloud anyway, and perhaps they are right.  However, you also have to keep in mind that small businesses soon become big businesses.  Many of those fast-growing businesses will use cloud computing as a strategic differentiator that will allow them to lead their markets, using cloud computing solutions that provide both lower costs and agile computing benefits.  Thus, cloud computing could find that it grows more around the success of the smaller players, than it does by waiting for the behemoths to begin adopting cloud computing. 

    

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This blog is your first step toward understanding the issues you will face as cloud computing and SOA converge. The movement to cloud computing is a disruptive change that IT departments will soon face as SOA and cloud computing begin to have an effect on the modern enterprise. IT managers must learn how to give as well as take information in this new, shareable environment, while still protecting their company's interests. Innovative companies will take advantage of these new resources and reinvent themselves as unstoppable forces in their markets. Those who don't take advantage of this revolution will become quickly outdated, perhaps out of business.

David Linthicum

David Linthicum is the CTO of Blue Mountain Labs, and an internationally known distributed computing and application integration expert. View more

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