OpenStack and Enterprise Applications

OpenStack

There are any number of Cloud related initiatives: Eucalyptus, Scalr, you name it. But, the "it" initiative these days is OpenStack.

Backed by RackSpace and a team from NASA, it is an open source effort that aims to create a complete Cloud Computing solution that is not encumbered by the VCE cartel (VMWare, Cisco, and EMC - in case you are wondering.)

With its hybrid commercial and tech origin, it also has a duel personality. On the technical side, there are groups of dedicated architects and developers driving the core products and related extensions. On the commercial side, a lot of companies, 100+ as of my last count, have signed up with OpenStack as corporate members.

It is worth watching who will drive the development of OpenStack as a project. On one hand, it could become Mozilla/Linux like with a clear technology focus. On the other, this could become mostly a standard setting body driven by corporate sponsors.

The easy answer is that this all depends on whether OpenStack gains traction in deployment. And, preferably, large scale ones. The real question is how would RackSpace manage the process?

With the announcement of the OpenStack foundation with donated IP at its recent Boston semi-annaul meeting, the foundation's development would offer the first clue on which path OpenStack will go down.

What does Cloud mean if you are not Google, Amazon, or Facebook

On the question of traction, I cannot help but look at the enterprise side of things. Cloud Computing as a utility is likely to end up in the hand of two providers in the US (look up your economics textbook for why so few and think of the US anti-trust history for why more than one.)

On the other hand, there are plenty of enterprises who need Cloud Computing in a meaningful scale. The most interesting one that I have heard so far is how DreamWorks, the animation film producer, is using Cloud for 50% of its rendering work. Here is an example of mission critical work where Cloud makes a lot of sense for.

Similarly, it is gratifying to note that corporate IT chiefs are thinking about what strategic advantages Cloud could offer beyond cost reduction through consolidation. We are likely to see a new batch of Cloud ideas in the next two years.


Related entries

* What's in it for corporate memebers, modular Cloud through OpenStack: https://plus.google.com/u/0/104462346399481715282/posts/GXPX1m5KDHD

* OpenStack Foundation annoucned: https://plus.google.com/u/0/104462346399481715282/posts/Tfig9mTkr59

* DreamWorks offload 50% of its computer processing to Cloud in 2011: https://plus.google.com/u/0/104462346399481715282/posts/9SnKr2q5DLy

* Shifting corporate view on what Cloud is for: https://plus.google.com/u/0/104462346399481715282/posts/8CgTJNQ8zme

Reality Check - Cloud is but a Tool

Can you touch Cloud Computing?

No. (This is not a trick question.)

Just like rail tracks, Cloud computing is more of a resource/tool that lets you do stuff. And, just like the rail tracks, back when it was invented, there was a bonanza to build tracks.

Without boring you with a history lesson, suffices to say that while rail tracks perform a vital function in any economy today, the real money for the long haul is to be made somewhere else.

What can you do with the Cloud?

It is therefore interesting to see the most dominant Cloud Computing provider, Amazon, coming out with its own tablet, Kindle Fire. Admittedly, tablet is hot these days with the success of Apple iPad. But, a reasonable question is what does Amazon have to offer that would beat iPad?

Turns out that Amazon probably is not looking to beat Apple in the game of desirous tablets. For Amazon, it is about content and Fire is really more of a delivery channel. Through the Cloud, no less.

This plays to Amazon's strength. It already runs a world class physical content delivery operations with all the rights and access to these content. It already operates one of the most respected Cloud computing platform with a proven record in doing and sending "stuff" on a massive global scale. And, guess what, given what Amazon can do, instead of charging a premium for its design, it could go to the other extreme and sell Fire as a loss-leader.

Now the tablet game begins!


Related entries

* Amazon's tablet biz-model: https://plus.google.com/u/0/104462346399481715282/posts/5QFL4aEtV9n

* Amazon's CDN play: https://plus.google.com/u/0/104462346399481715282/posts/Vo2vLVQyDjW

* Amazon Silk could be the face of Cloud Computing to users: https://plus.google.com/u/0/104462346399481715282/posts/aVmBsW1BoPB

Looking for More Distractions?

Google Plus

I am fairly agnostic when it comes to social media. I have tried a good number of them and found most of them wanting in one way or another. Typically, small things that imposes a time tax which, after some good-intention'd efforts, my usage starts to drift.

Hoopla over its growth and its demise (how time flies in the social media scale), aside. I like Google Plus for its open environment instead of being a walled garden. I also like the Twitter like capabilities.

Prometheus Reconsidered on G+

Prometheus Reconsidered now has an open curated stream on G+. It is updated almost daily but features articles that are related to technology, innovation, and business.

Please join the fun: Prometheus Reconsidered on Google Plus.

A Device that Loves You

Hi! I am Still Here!!

With the accolades piling on after Steve Jobs announced his retirement from his active role as Apple's CEO, I could not help but feel that I have been reading eulogies. But, to state the obvious and to paraphrase Mark Twain, Jobs' earthly departure has been greatly exaggerated.

More platitude

Jobs is known, today, for a string of i(Stuff) after he took back the rein as head of Apple. To that point, I think the most insightful comment is AEI's observation that his success is built on a series of spectacular failures. For old timers in Silicon Valley, Jobs' original notoriety was for supposedly "being inspired/borrowed/stole" the GUI (graphic user interface) and mouse design after visiting Xerox PARC to create the original Mac. On that score, one cannot help but wonder if we would still be using command line interface today without him.

On Jobs-ness

I was watching two kids playing with an iPad recently. Predictably, I marveled at the ease in which these kids, with an average age of 3, interacted with the device. What is the magic sauce? Design is important, but there are plenty of studios with world class designers. Interface is important, but it is actually a well analyzed science with its own conferences. Technology is important, but nobody buys Apple for its CPU speed or new interface cards. All of these seem to be necessary but insufficient conditions. Then, it struck me that what makes a Steve Jobs device compelling is its laser-like narrow focus on the actual user at the risk of excluding everyone else. It does not try to play nice with your corporate IT support team. It does not like talking with your friend's Android device. It actually does not do a lot of stuff that most technology types would consider important. On the other hand, I have noticed in conversations with Apple users that it often sound a bit like a love-affair.

Maybe that is the point. Steve Jobs builds a device that loves you and expects nothing less in return.


* NY Times on Steve Jobs: http://topics.nytimes.com/top/reference/timestopics/people/j/steven_p_jobs/index.html

* Steve Jobs: America's Greatest Failure http://www.aei.org/article/104051

* Jobs the innovator (not inventor): http://www.fiercetelecom.com/story/apples-jobs-should-be-remembered-product-innovator-not-inventor/2011-08-29?utm_medium=nl&utm_source=internal

* Working with Jobs: http://venturebeat.com/2011/08/25/michael-dhuey-apple-engineer/

Googorola and Smartphone Ecosystem 2.0

Google + Motorola Mobility

Okay. Unless you have been kipnaped and gone off the grid in the last week, you have heard about what likely will be considered the deal of the year, Google buying Motorola Mobility (MMI) for $12.5bn.

The most obvious reason is that Google is in serious need of strong patents and in great multitude in order to protect the Android ecosystem that it has built in the past few years after failing to secure the Nortel IP portfolio.

Fear, aspiration, and other reactions

Having the patents from the granddaddy of the mobile handset, Motorola, puts Google in a much better/equal footing with the likes of Apple and Microsoft/Nokia as far as the on-going proxy war in Smartphones are concerned. On one hand, this could potentially re-enforce the alligance of Android makers such as HTC and Samsung to the eco-ystem by minimizing uncertainties for the long term (the existing legal actions between Apple and these markers still need to be played out, but the outcome is likely to be more favorable to Android makers if Google gets involved in a multi-party licensing arrangement.)

On the other hand, by becoming the owner of a handset maker, Google has to maintain the tricky balancing act of ensuring that there is no hint of favorism with Motorola. For now, Android handset makers have expressed support for the acquisition, although, as the saying goes, the proof is in the pudding - we shall see what happens in the next 6-12 months. There has also been alternative scenario proposed suggesting that given the proliferation of Android handsets (300+ as of latest count), Google could be in a position to use Motorola to create reference designs for the whole eco-system so that the end user can get the maximum benefit of Android phone through streamlined design/production. Honestly though, it is hard to see how Google can do this with Motorola in its present form unless it plans to trim MMI down to an expensive hardware lab.

An area that is worth thinking about is how do the telco think about this. While iPhone has been a boom for the likes of AT&T, the consensus is that Apple is capturing most of the profit and accolade while the operators are stuck with footing the bills for massive capital expenditure and handling user complaints. So, what does the creation of another Apple-like 800 pound gorilla in GOOG/MMI mean? So far, the reaction has been very muted.

How about consumers? There was a fun naming competition at WSJ for the rest of us where the readers get to vote for a name for the transaction. The winner is Googorola - the people have spoken. Beyond the thrill of instant veiwer particilation, there was a suggestion that Google will offer free smartphone as an extension of its multi-side platform business model. Since, unlike software which is virtually free once written, hardware comes with a BOM (bill of materials) for each unit, not sure if that would ever happen with the current ecosystem. On the other hand, if you extend the scenario to the model of fab-less IC design houses, it may be a good time to think about who will be, or indeed think about starting, the next TSMC for handsets.

Did you know - a few loose ends

Finally, on the patent front, given Apple's aggressive legal actions, it is interesting to note that Palm (HP, for now) is the only company that Apple has not gone after. Both Apple and Microsoft are siting on a big pile of cash right now. (I am just saying.)

On the smartphone technology front, it is probably worth noting that Mozilla is starting a project to build a smartphone browser that aims to do to smartphone ecosystem what its FireFox (internet browser) has done to the PC ecosystem by rendering Microsoft's operating system playing second fiddle as users migrate to Cloud Computing. Given the success of Mozilla and Firefox, this is a highly credible project. However, with the on-going battle between iOS and Android instead of a dominant platform like Microsoft Windows, this vision may take a while.

* Google buying MMI: http://googleblog.blogspot.com/2011/08/supercharging-android-google-to-acquire.html
* Android Partner quotes: http://www.google.com/press/motorola/quotes/
* Google taking charge of Android Ecosystems: http://www.lightreading.com/blog.asp?blog_sectionid=217&doc_id=211132&f_src=lrdailynewsletter
* Telco and other poentail losers of the GOOG/MMI deal: http://www.fiercewireless.com/story/who-are-losers-googles-125b-acquisition-motorola/2011-08-16?utm_medium=nl&utm_source=internal
* France Telecom "Like" GOOG/MMI: http://allthingsd.com/20110815/u-s-carriers-silent-on-motoroogle-but-france-telecom-gives-it-a-thumbs-up/?mod=mailchimp
* Verizon hoping for peace on the patent war front: http://www.fiercewireless.com/story/verizon-hopes-google-motorola-deal-will-cool-patent-wars/2011-08-17?utm_medium=nl&utm_source=internal
* Does this mean I can get a smartphone for free from Google now? http://www.xconomy.com/san-francisco/2011/08/17/are-free-motorola-phones-in-our-future-a-vc%E2%80%99s-take-on-why-google-is-buying-motorola/
* Readers have spoken, Googorola it is: http://allthingsd.com/20110817/googorola-triumphs-in-snarky-nickname-poll-over-12-5b-bid/?mod=mailchimp
* Apple may fear Palm's (HP) patents the most: http://allthingsd.com/20110819/could-hp-turn-a-profit-on-palms-patents/?mod=mailchimp
* Mozilla/Firefox's Plan B: http://www.technologyreview.com/web/38308/?nlid=nldly&nld=2011-08-15

Emerging Issues for Cloud Comnputing

Attacking Mobile Computing Platforms

One benefit of using the Cloud is that computing is no longer tied to a physical location and machine. In this untethered environment, if you have a sufficiently robust device, i.e. a smartphone, you can have an office wherever you are.

Of course, this also means that these smartphones are the new targets of virus and other malware. In a recent report, malware creators seem to favor Android. The assumption is that Android app is not a tightly curated platform whereas iPhone's is.

On the business front, what is interesting to ponder is what is the best curation strategy for a given stage of a platform's growth. On the technical front, does the combination of Cloud and Smart device allow a new way of protecting again and recovering from malware?

When Geography Defines the Boundary

Export control allows a government to restrict the export of items, information, and software it deems sensitive. In the old days of physical shipping, there is a form and approval process if an item is on the export control list.

Cloud computing, on the other hand, removes the geographic boundary that defines the where and how export control can be enforced. This is a brand new territory for both policy makers and technologists.

On the face of it, any particular use case may not be difficult to address. But, a robust universal framework that will encourage the innovative and commercial motivation on one hand and the imperatives of national security and foreign policy on the other will require an in-depth discussion.

Virus for smartphones: https://www.mylookout.com/mobile-threat-report
Export Control in the Age of Cloud Computing: http://www.brookings.edu/papers/2011/0725_cloud_computing_villasenor.aspx

Office Redefined in the Age of Cloud and Mobile Computing

Not your Daddy's WordStar

Office productivity tools have come a long way from the days of the Wang Labs (assuming you even know what that is in reference to.) MIT's Tech Review has a series of articles on what constitutes an office in today's mobile and cloud computing world. A global and flattening global nature of interaction, ubiquitous and instantanious accessibility, and how to better define and protect data are some of the oft-heard observations.

These observations also lead to some interesting questions.

Roll Up a Flattened World

In a flat and global world, while it is true that people from different corners of the world can be part of the same virtual team, it is also true that virtual team is difficult to manage. Although cloud and mobile computing have made life easier. From a business perspective, how to get a team to perform at a high productivity level remains an art.

In other words, now that people are collaborate across oceans, does mobile and cloud computing offer new opportunities to close the physical distance?

Going Off the Grid

The convergence of mobile and cloud is accidental. For the early cloud folks, the emergence of a touch based device was not expected. Similarly, mobile designers only considered tapping the vast processing and storage power of Cloud as an after-thought. As users become more comfortable using smart mobile devices as the primary "office computer", how to address the productivity needs while offline will become an issue.

Adding more processing and storage on the mobile device can only get you so far. What is not clear is what are the buseinss policy tools. For example, what data can you take offline to protect privacy and security. What if several people are working on the same document, can you take it offline and work on it?

The Rise of the Virtual Office: http://www.technologyreview.com/business/38169/page1/
Tiny, Cloud-Powered Desktops: http://www.technologyreview.com/business/38171/?nlid=nldly&nld=2011-08-04
How to Secure the Virtual Office: http://www.technologyreview.com/business/38170/page1/

A Familiar Path for Mobile OS?

What used to be the Boring End of Software

Who knew?! Operating Systems (OS) used to be the most boring part of the software world that mainly divided into the PC/Wintel camp and the Unix derivatives (server, Mac) camps.

Vital, yes. Sexy, no.

Alibaba's Aliyun

While Apple's iOS and Google's Android are duking it out on both install base growth and patent infringement skirmishes around the world in a "proxy war", Alibaba's Aliyun mobile OS is almost a breath of fresh air. Not to suggest that Alibaba of China is not an 800 pound gorilla in its own right, but I, for one, am thankful for a new twist in the development.

It is still too early to know what impact Aliyun would have on the global stage. But, one can be fairly certain that China market alone will make it a player to contend with.

Mobile Computing Ecosystem

It is also interesting to see the recent media blitz on mobile computing in Asia by Eric Schmidt of Google which he dubbed the "Mobile Revolution." Given the pressure that HTC and Samsung are getting from Apple for their Android phone, it sure is good to have a very high level and publicly visible support from Google.

What I find interesting in the Schmidt piece, however, is his suggestion that Android, as an open platform, should be the preferred choice for the rest of world because of its low cost and inter-operability. I cannot help but wonder if this is implicitly suggesting that, like the PC world, the future will consists of the cool people on iPhone (like designers wearing only black and using Mac) and a much larger user base on Android Phones (i.e. the rest of us folks on PC).

I suspect, a good deal of this potential outcome depends on what the local telco around the world have to say about it.

* Alibaba's Aliyun: http://allthingsd.com/20110728/look-out-android-and-ios-here-comes-alibabas-aliyun/?mod=mailchimp
* Schmidt's Mobile Revolution (in Chinese): http://www.businesstoday.com.tw/v1/content.aspx?a=W20110701225&p=1
* Schmidt's Mobile Revolution (in English): http://asiancorrespondent.com/60334/googles-schmidt-hails-the-real-mobile-revolution-in-asia/

A Proxy War

First out of the Gate

With Nortel's auction barely over, Google and Apple are rumored to be circling InterDigital's IP assets in mobile handsets.

Second out of the Gate

Carl Icahn is pushing Motorola Mobility to monetize its own IP portfolio given the current hot market in smart phone. Specifically, he has valued Motorola's IP to be worth around $4bn. Given Nortel's final price of $4.5bn and the fact that Motorola invented the mobile phone industry, it does not seem like an aggressive number.

The Real Question

As strange as it seems to the casual observers, the real issue is the Google Android operating system for mobile handsets. It is the most viable alternative to iPhone today with shipped products. To use a cold war analogy, handset makers such as HTC of Taiwan and Samsung of Korea are the clients who have been fighting a proxy war for Google over their use of Android and Android's potential infringement of existing patents owned by the likes of Apple and Microsoft.

While HTC has been acquiring patents to counter the infringement claims and Samsung has been assiduously building up its own IP portfolio, as the keeper of Android, I cannot help but wonder how Google will shape the conversation. After all, it makes little sense for Google to let a global mobile computing eco-system that will be much bigger than the desktop computing one crumble over a few billion dollar worth of patents.

On this point, a chat between Google and Carl Icahn could be an interesting option.


* InterDigital: http://www.bloomberg.com/news/2011-07-20/google-said-to-be-among-companies-considering-interdigital-bid.html
* Motorola: http://www.reuters.com/article/2011/07/22/us-motorola-idUSTRE76K54220110722

Smartphones and Billion Dollar Auction

Rockstar's $4.5bn

Well, it is now official. Nortel's 6,000 patent portfolio has been sold to Rockstar, a bidding consortium consisting of Apple, Microsoft, Research in Motion, Sony, Ericsson, and EMC for $4.5bn. To put this in context, the starting stalking horse bid was $900mn from Google.

It is said that the winner companies were bidding mostly for defensive purpose against Google and its Android eco-system. The most obvious targets, beyond Google, would be Samsung and HTC. Words on the street is that there is regulatory concerns on the new IP owners could inhibit the competitive nature of smartphone developments.

The saga continues.

Alcatel-Lucent's $20+bn

With Nortel's auction done, inquiring minds cannot help but wonder what comparable could be drawn in the IP world. An investment banking analyst did some number crunching and suggested that Alctel-Lucent, who owns the IP portfolio of the old (AT&T) Bell Lab, could fetch more than $20 billion alone in a similar auction.

Contrasting with ALU's market cap these days at less than $20bn. I wonder if there may be an activist investor or two who are making plans as we speak.

At $15 per Smartphone

Valuing IP is a tricky business. And, the Nortel's auction, in no small part, is impacted by the recent explosive growth of smartphone eco-systems. To give it a more concrete context, MSFT is rumored to be asking for $15 licensing fee per phone that Samsung ships that uses Android. And, at 19mn phones for the last three months and continuing growth in the foreseeable future, this is real money that even MSFT cannot ignore.


* Nortel's $4.5bn: http://www.bloomberg.com/news/2011-07-01/nortel-sells-patent-portfolio-for-4-5-billion-to-group.html
* Bell Lab's $20bn: http://www.lightreading.com/document.asp?doc_id=209655&f_src=lightreading_gnews
* $15 per for MSFT: http://www.reuters.com/article/2011/07/06/us-samsung-microsoft-idUSTRE7651DB20110706

Cloud and Mobile Smart Devices

A Blurring Line

I concluded my 2008 Cloud analysis by arguing that Cloud and Smart Devices were coming together. On one hand, smart devices as epitomized by iPhone are breaking the traditional separation between corporate and personal devices today. Namely, users are demanding and IT support are ceding to the desire to commingle private and corporate usage in the same personal device.

Furthermore, since Cloud Computing offers ubiquitous access, providing Cloud-based apps through the smart devices becomes a compelling value-add service to both mobile users and their IT support team.

Securing Corporate Assets

A potential hazard of mixing Cloud apps, smart devices, confidential data, and private usage is how to effectively secure the corporate assets without disturbing personal needs and habits.

Traditionally desktop solutions such as firewall, anti-virus, and VPN capabilities will need to be available on the smart devices. Equally important would be the ability for enterprises to secure corporate data and apps from workers' personal devices without compromising usability and remove information on the devices easily when the user is no longer part of the company.

Google, Nortel, and What is a Software Patent Worth

Nortel's Patents

Google has just announced that it is bidding for Notel's patent portfolio. It was reported that Google's $900 million bid for Notel's 4,000 patents is the stalking-horse bid. Equally interesting is that ZTE, Apple, and Huawei are said to be bidding for the same portfolio.

Given the mix of patents (fiber optic, long-haul switch, etc.) I can only assume that other telco players are not bidding because they already have similar patent or, at least, enough to force cross licensing. Of the four known bidders, they are all new entrants into this space. I cannot help but wonder if there would be a consortium whose plan is to break up the portfolio amongst its members if the consortium was successful.

Tellingly, in Google's announcement, it lamented the problems with software patents and confirmed its intention to play and are buying chips for a seat to the table.

Speaking of Software Patents

Traditional legal assumption has been that software cannot be patented because it is not a physical machine nor can a specific transformation be seen. But, over the years, software patents have been applied and granted. The most famous one is probably the case involving Single-Click Check Out patent by Amazon.

Given the traditional assumption and the advent of software patents litigation, all eyes were on the US Supreme Court to give guidance on if software is indeed patentable.

Bilski 2010

The US Supreme Court took up the Bilski case and decided that the physical and/or transformation tests are not the sole criteria for issuing a patent. These tests merely offer "useful and important clues". This sort of makes sense since it is not any less difficult to come up with software innovation than hardware. But, how this is applied in practice in the US will still take years of litigation in the court to establish the case law.

What is a Software Patent Worth

One thing is for sure, however. This means the software big boys have a new tool in managing their eco-systems. And, not to suggest Nortel's portfolio is not worth the money otherwise, I suspect this partly explained Google's willingness to fork out nearly one billion dollar for the portfolio.