Tag Archives: cloud computing

Tablets will be bigger than PCs. Are you ready?

Apple’s CEO Tim Cook spoke at the Goldman Sachs Technology Conference yesterday; Macrumors has what looks like a full transcript. Do not expect hot news; there is little or nothing in the way of announcements. It is interesting though as a recap of how Apple sees its future: iPad, iPhone, iCloud, Apple TV, maybe some future huge acquisition financed by its cash pile.

This is what stands out for me:

From the first day it shipped, we thought that the tablet market would become larger than the PC market and it was just a matter of the time it took for that to occur. I feel that stronger today than I did then.

I agree. The reasons are similar to those that caused laptops to outpace desktops. Mobility and convenience trump the better computing value you get in a desktop PC. Note: we still use desktops, and both desktops and laptops will continue to sell, but in smaller quantity.

Although you can list numerous reasons why tablets are not good enough – no keyboard, small storage capacity, underpowered for cutting-edge gaming, not really expandable, favourite apps not yet available, and more – none of these is sufficient to prevent the tablet taking over in the majority of cases.

You can have a keyboard if you want; build it into the case. Storage is increasing all the time, and we have the cloud. Graphics power is increasing all the time. Most people are happy to sacrifice expandability for the simplicity and reliability of a tablet. If your favourite app is not yet available, it soon will be; or else an equivalent will appear that replaces it.

Tablet benefits? Cost, no flappy screen, light and small, designed for ease of use, reliability of an appliance versus a computer for starters.

In itself, the move from one type of computing device to another is no big deal. The reason this one is such a deep change is because of other factors. I will list three:

  • The lock down

    Pioneered by Apple, this is the idea that users should not have full access to the operating system on their device in almost any circumstances. The lock down is a cost and a benefit. The benefit: resilience against malware, greater reliability. The cost: loss of control, loss of freedom, handing over even more power to those who do have full access, primarily the operating system vendor. Where UEFI secure boot is enabled, it is not even possible to boot to an alternative operating system.

  • The store

    Hand in hand with the lock down is the store, the notion that apps can only be installed through the operating system vendor’s store. This is not a universal tablet feature. Apple’s iPad has it, Microsoft’s forthcoming Windows 8 on ARM has it, Android devices generally let you enable “unknown sources” in order to install apps via a downloaded package, though sometimes this option is missing. Further, both Apple and Microsoft have schemes whereby corporates can install private apps. Still, the consequence of the lock down is that the ability to install apps freely is something which can be tuned either way. Since store owners take a cut of all the business, they have have a strong incentive to drive business their way.

    I have never believed Apple’s line that the iTunes store is intended as a break-even project for the convenience of its hardware customers.

  • The operating system

    I am at risk of stating the obvious, but the fact that most tablets are iPads and most non-Apple tablets are Android is a monumental shift from the Windows-dominated world of a few years back. Can Microsoft get back in this game? I am impressed with what I have seen of Windows 8 and it would probably be my tablet of choice if it were available now. The smooth transition it offers between the old PC desktop world and the new tablet world is compelling.

    That said, this cannot be taken for granted. I watched someone set up a new Android tablet recently, and was interested to see how the user was driven to sign up for a variety of services from Google and HTC (it was an HTC Flyer). Devices will be replaced, but accounts and identities are sticky. Users who switch devices may face having to move documents to a different cloud provider if they know how, re-purchase apps, figure out how to move music they have purchased, re-buy DRM content. A big ask, which is why Microsoft’s late start is so costly. At best, it will be a significant player (I think it will be) but not dominant as in the past.

    Late start? Did not Bill Gates wave a slate around and predict that it would be the future of the PC back in 2001:

    "So next year a lot of people in the audience, I hope, will be taking their notes with those Tablet PCs … it’s a PC that is virtually without limits and within five years I predict it will be the most popular form of PC sold in America."

    Right idea, wrong execution. Microsoft tried again with Origami, the ultra mobile PC, a device that was so obviously flawed that everyone knew it would fail. My belief is that Microsoft, helped by Apple’s example, has a tablet concept that works this time round, but nevertheless the history is discouraging.

    One reason for the relative failure of the Tablet PC and the complete failure of Origami was price. Microsoft’s business model depends on selling software licenses, whereas Apple mostly bundles this cost into that of the hardware, and Android is free. Price of the first Windows 8 tablets is unknown, but could again prove to be a problem.

    Interesting to debate; but however it shakes out, Windows-only is not coming back .

It follows that as tablet use continues to grow, both business and consumer computing are transforming into something different from what we have become used to. Considering this fact, it would be interesting to analyse affected businesses in terms of how ready they are for this change. It would be fascinating to see companies ordered by some kind of tablet readiness index, and my guess is that those towards the bottom of that hypothetical list are in for a nasty shock.

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PHP Developer survey shows dominance of mobile, social media and cloud

Zend, a company which specialises in PHP frameworks and tools, has released the results of a developer survey from November 2011.

The survey attracted 3,335 respondents drawn, it says, from “enterprise, SMB and independent developers worldwide.” I have a quibble with this, since I believe the survey should state that these were PHP developers. Why? Because I have an email from November which asked me to participate and said:

Zend is taking the pulse of PHP developers. What’s hot and what matters most in your view of PHP?

There is a difference between “developers” and “PHP developers”, and much though I love PHP the survey should make this clear. Nevertheless, If you participated, but mainly use Java or some other language, your input is still included. Later the survey states that “more than 50% of enterprise developers and more than 65% of SMB developers surveyed report spending more than half of their time working in PHP.” But if they are already identified as PHP developers, that is not a valuable statistic.

Caveat aside, the results make good reading. Some highlights:

  • 66% of those surveyed are working on mobile development.
  • 45% are integrating with social media
  • 41% are doing cloud-based development

Those are huge figures, and demonstrate how far in the past was the era when mobile was some little niche compared to mainstream development. It is the mainstream now – though you would get a less mobile-oriented picture if you surveyed enterprise developers alone. Similar thoughts apply to social media and cloud deployment.

The next figures that caught my eye relate to cloud deployment specifically.

  • 30% plan to use Amazon
  • 28% will use cloud but are undecided which to use
  • 10% plan to use Rackspace
  • 6% plan to use Microsoft Azure
  • 5% have another public cloud in mind (Google? Heroku?)
  • 3% plan to use IBM Smart Cloud

The main message here is: look how much business Amazon is getting, and how little is going to giants like Microsoft, IBM and Google. Then again, these are PHP developers, in which light 6% for Microsoft Azure is not bad – or are these PHP developer who also work in .NET?

I was also interested in the “other languages used” section. 82% use JavaScript, which is no surprise given that PHP is a web technology, but more striking is that 24% also use Java, well ahead of C/C++ at 17%, C# at 15% and Python at 11%.

Finally, the really important stuff. 86% of developers listen to music while coding, and the most popular artists are:

  1. Metallica
  2. = Pink Floyd and Linkin Park

Wow.

Trying out nide – a cloud IDE for Node.js

I was intrigued by reports of nide, a web-based IDE for Node.js. It was one of the entries in the Node.js Knockout challenge last summer.

So how do you install it? One line on Linux; but I did not want to put it on my web server and I re-purposed my spare Linux machine last year after one of my other servers broke.

I decided to run up a Debian install on a Hyper-V server that has a little spare capacity.

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I then followed the setups here for setting up Node.js and npm (Node Package Manager). I also installed nginx which I have been meaning to try for a while. Linux on Hyper-V works fine, though you have to use a “Legacy” network adapter which compromises performance a bit, unless you are willing to tackle installing Microsoft’s Hyper-V integration components for Linux, which do not support Debian though it is said to work. I do not need a GUI and the legacy network adapter is OK for this.

Everything works OK, though I found that nide does not work in Internet Explorer 9. I used Google Chrome, which makes sense I guess since the same JavaScript engine is used by Node.js.

Nide is a simple affair which is essentially a file manager. Projects are displayed in a tree view, and you select a file to view or edit it. The icons at the bottom left of the screen let you create and delete files and folders.

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The smartest feature is version management. Files are saved automatically and you can easily compare versions and revert if necessary. The “Go backward in time” button shows that auto-saves are quite frequent.

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There is also a GUI for npm built-in. Pretty good for a competition entry, though I had a few problems.

If you are interested in web-based IDEs, another interesting one is Orion, an Eclipse project.  Executive Director Mike Milinkovich says Orion will ship a 1.0 release later this year.

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ITWriting.com awards 2011: ten key happenings, from Nokia’s burning platform to HP’s nightmare year

2011 felt like a pivotal year in technology. What was pivoting? Well, users are pivoting away from networks and PCs and towards cloud and devices. The obvious loser is Microsoft, which owns PCs and networks but is a distant follower in devices and has mixed prospects in the cloud. Winners include Apple, Google, Amazon, and Android vendors. These trends have been obvious for some time, but in 2011 we saw dramatic evidence of their outcome. As 2011 draws to a close, here is my take on ten happenings, presented as the first ever ITWriting.com annual awards.

1. Most dramatic moment award: Nokia’s burning platform and alliance with Microsoft

In February Nokia’s Stephen Elop announced an alliance with Microsoft and commitment to Windows Phone 7. In October we saw the first results in terms of product: the launch of the Lumia smartphone. It is a lovely phone though with some launch imperfections like too short battery life. We also saw greatly improved marketing, following the dismal original Windows Phone 7 launch a year earlier. Enough? Early indications are not too good. Simply put, most users want iOS or Android, and the app ecosystem, which Elop stated as a primary reason for adoption Windows Phone, is not there yet. Both companies will need to make some smart moves in 2012 to fix these issues, if it is possible. But how much time does Nokia have?

2. Riskiest technology bet: Microsoft unveils Windows 8

In September 2011 Microsoft showed a preview of Windows 8 to developers at its BUILD conference in California. It represents a change of direction for the company, driven by competition from Apple and Android. On the plus side, the new runtime in Windows 8 is superb and this may prove to be the best mobile platform from a developer and technical perspective, though whether it can succeed in the market as a late entrant alongside iOS and Android is an open question. On the minus side, Windows 8 will not drive upgrades in the same way as Windows 7, since the company has chosen to invest mainly in creating a new platform. I expect much debate about the wisdom of this in 2012.

Incidentally, amidst all the debate about Windows 8 and Microsoft generally, it is worth noting that the other Windows 8, the server product, looks like being Microsoft’s best release for years.

3. Best cloud launch: Office 365

June 2011 saw the launch of Office 365, Microsoft’s hosted collaboration platform based on Exchange and SharePoint. It was not altogether new, since it is essentially an upgrade of the older BPOS suite. Microsoft is more obviously committed to this approach now though, and has built a product that has both the features and the price to appeal to a wide range of businesses, who want to move to the cloud but prefer the familiarity of Office and Exchange to the browser-based world of Google Apps. Bad news though for Microsoft partners who make lots of money nursing Small Business Server and the like.

4. Most interesting new cross-platform tool: Embarcadero Delphi for Windows, Mac and iOS

Developers, at least those who have still heard of Embarcadero’s rapid application development tool, were amazed by the new Delphi XE2 which lets you develop for Mac and Apple iOS as well as for Windows. This good news was tempered by the discovery that the tool was seemingly patched together in a bit of a hurry, and that most existing application would need extensive rewriting. Nevertheless, an interesting new entrant in the world of cross-platform mobile tools.

5. Biggest tech surprise: Adobe shifts away from its Flash Platform

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This one caught me by surprise. In November Adobe announced a shift in its business model away from Flash and away from enterprise development, in favour of HTML5, digital media and digital marketing. It also stated that Flash for mobile would no longer be developed once existing commitments were completed. The shift is not driven by poor financial results, but rather reflects the company’s belief that this will prove a better direction in the new world of cloud and device. Too soon and too sudden? Maybe 2012 will show the impact.

6. Intriguing new battle award: NVIDIA versus Intel as GPU computing catches on

In 2011 NVIDIA announced a number of wins in the supercomputing world as many of these huge machines adopted GPU Computing, and I picked up something of a war of words with Intel over the merits of what NVIDIA calls heterogeneous computing. Intel is right to be worried, in that NVIDIA is seeing a future based on its GPUs combined with ARM CPUs. NVIDIA should worry too though, not only as Intel readies its “Knight’s Corner” MIC (Many Integrated Core) chips, but also as ARM advances its own Mali GPU; there is also strong competition in mobile GPUs from Imagination, used by Apple and others. The GPU wars will be interesting to watch in 2012.

7. Things that got worse award: Spotify. Runners up: Twitter, Google search

Sometimes internet services come along that are so good within their niche that they can only get worse. Spotify is an example, a music player that for a while let you play almost anything almost instantly with its simple, intuitive player. It is still pretty good, but Spotify got worse in 2011, with limited plays on free account, more intrusive ads, and sign-up now requires a Facebook login. Twitter is another example, with URLS now transformed to t.co shortcuts whether you like it not and annoying promoted posts and recommended follows. Both services are desperately trying to build a viable business model on their popularity, so I have some sympathy. I have less sympathy for Google. I am not sure when it started making all its search results into Google links that record your click before redirecting you, but it is both annoying and slow, and I am having another go with Bing as a result.

8. Biggest threat to innovation: Crazy litigation from Lodsys, Microsoft, Apple

There has always been plenty of litigation in the IT world. Apple vs Microsoft regarding graphical user interfaces 1994; Sun vs Microsoft regarding Java in 1997; SCO vs IBM regarding UNIX in 2003; and countless others. However many of us thought that the biggest companies exercised restraint on the grounds that all have significant patent banks and trench warfare over patent breaches helps nobody but lawyers. But what if patent litigation is your business model? The name Lodsys sends a chill though any developer’s spine, since if you have an app that supports in-app purchases you may receive a letter from them, and your best option may be to settle though others disagree. Along with Lodsys and the like, 2011 also brought Microsoft vs several OEMs over Android, Apple vs Samsung over Android, and much more.

9. Most horrible year award: HP

If any company had an Annus Horribilis it was HP. It invested big in WebOS, acquired with Palm; launched the TouchPad in July 2011; announced in August that it was ceasing WebOS development and considering selling off its Personal Systems Group; and fired its CEO Leo Apotheker in September 2011.

10. Product that deserves better award: Microsoft LightSwitch

On reflection maybe this award should go to Silverlight; but it is all part of the same story. Visual Studio LightSwitch, released in July 2011, is a model-driven development tool that generates Silverlight applications. It is nearly brilliant, and does a great job of making it relatively easy to construct business database applications, locally or on Windows Azure, complete with cross-platform Mac and Windows clients, and without having to write much code. Several things are unfortunate though. First, usual version 1.0 problems like poor documentation and odd limitations. Second, it is Silverlight, when Microsoft has made it clear that its future focus is HTML 5. Third, it is Windows and (with limitations) Mac, at a time when something which addresses the growing interest in mobile devices would be a great deal more interesting. Typical Microsoft own-goal: Windows Phone 7 runs Silverlight, LightSwitch generates Silverlight, but no, your app will not run on Windows Phone 7.  Last year I observed that Microsoft’s track-record on modelling in Visual Studio is to embrace in one release and extinguish in the next. History repeats?

Adobe’s cloud plans: most customers will migrate, pay more, get more

I’ve been listening to some of the sessions from Adobe’s Financial Analyst meeting in New York City yesterday. Since this event was focused on financials, Adobe talked in detail about how it intends not only to win its customers over to a cloud model, but also to make more revenue from them. I found it fascinating.

First, a little background. Adobe announced its Creative Cloud at the MAX event in Los Angeles last month. I was there, and while it was obvious that the announcement was significant, I did not appreciate until yesterday how profoundly the company is changing its business model.

Adobe has its own take on what cloud computing means. There are no plans for Creative Suite – which bundles products including Photoshop, Dreamweaver, Flash and Premier Pro – to become software as a service in the manner of Google Apps or Salesforce.com. Rather, the Creative Cloud is primarily two things:

1. A new purchase model for Creative Suite and associated tablet apps, based on subscription rather than perpetual licencing.

2. A set of cloud-based services which extend the features of the desktop applications. These services include storage of your projects, synchronisation across different desktop PCs and mobile devices, font licensing, digital publishing, analytics, and website building.

There is also a community aspect. I grabbed a screen from one of the presentations, and on the right you can see that the customer has a Twitter-style “followed” and “following” count, as well as status activity reported.

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In the main part of the screen, you can see the desktop apps she has installed “on this machine” – implying some link between cloud and local machine – tools “you do not have yet” which can be installed from the cloud, and a set of Android and Apple iOS touch apps also marked “click to install”.

One thing Adobe made clear to its analysts is its intention that all its Creative Suite customers will eventually move to the Creative Cloud, and that the majority of its Creative Suite business will be cloud subscription within 4 years.

Why will you move? Well, Adobe is going to reserve some benefits for subscription customers. During the Q&A at the end of the day, the execs were asked whether Adobe Edge and Muse will be in Creative Suite 6, the next major version. Edge is for designing HTML 5 animations, while Muse is for building web sites without writing code. This is what Senior VP David Wadhwani said:

We’ve announced they will be available in the CS6 timeframe. They will be available as point products, as subscriptions, and in the Creative Cloud. Our current thinking is not that we’ll be adding them to Creative Suite. Creative Cloud is what we believe adds more value to our customers and we want to continue to drive people in that direction.

It is not just adding value to customers though, it is adding value to Adobe as well. Adobe presented figures which spell this out (it was a financial meeting, remember). The example was CS 5.5 Design Premium.

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This particular suite costs as much as $1,899 today if you buy a perpetual licence, or as little as $399.00 as an upgrade from CS 5 (still a perpetual licence). Adobe has a sliding scale of upgrade prices, which rise according to the age of your current version, though apparently this is changing and you will no longer get upgrade prices more than two versions back (I think this means that CS 4.x versions will not get upgrade pricing for CS 6).

The existence of upgrade prices makes calculating revenue per customer over time rather complex, because it depends how often they upgrade. CS is now on an annual release cycle, and according to Adobe this means the revenue from a perpetual licence customer might be as much as $3,894 over six years, or as little as $1,424 if they are an existing customer who upgrades just once at the beginning of that six year period.

On average, Adobe says, its perpetual licence Creative Suite customers pay $30.00 per month “over all CS suites and geographies”.

By contrast, the Creative Cloud subscription would be either $49 or $69 per month (I am not quite sure what extra you get for the $20) and over 6 years, allowing for some customers to drop out, Adobe reckons it will get $40.00 revenue per month.

In other words, it is projecting that its Creative Suite customers will pay on average 33% more under the new Creative Cloud model, than they do today.

I am not clear how dealer margins affect these figures; but Adobe did say that it will continue to work with its retail channel and partners, so that will continue at some level.

One analyst asked why customers will be willing to pay more than they do at the moment. Here is Wadhwani’s answer:

There’s a lot of new value in the creative cloud. You get all of the desktop tools as they’re ready. You get all of the touch tools. When our creative Suite customers are starting to use tablets they want automatic synchronisation and the ability to use those directly with the desktop tools. That’s one of the functions the creative cloud includes.

There’s a lot more in there around community, there’s a lot more in there around training. We’ve talked about Adobe gurus, people that are recognized names in the community participating and helping our customers with new ideas. We’ve also introduced the idea of some segments of the digital publishing suite and business catalyst and some of our publishing services being available,

And recently we’ve acquired a company called Typekit which addresses one of the biggest issues as people move to being more digital, which is how do they manage and licence fonts? That whole aggregate value is substantially more than what they get with a single version of the creative suite.

Is that worth on average 33% more? It is hard to judge as it depends on the individual customer’s pattern of work.

Whatever you think of this strategy, it is in line with something Adobe has been pushing hard in recent years, which is to drive for recurring revenue rather than one-off purchases. In fact, this is stated in the financial presentation. Apparently, 40% is already recurring revenue, but the company plans to transition the majority of overall Adobe business to recurring revenue within 4 years.

Adobe Debut: my favourite of the new touch apps, cloud-side rendering

Adobe announced six touch apps for Android and Apple iPad tablets yesterday at its MAX conference in Los Angeles. These hook into cloud services offered by the Creative Cloud, also just announced.

My favourite among the new apps is Adobe Debut. The problem this addresses: you want to show your client the work you have done in one of the Creative Suite apps like Photoshop or InDesign. A tablet is ideal for handing round at a meeting, but Adobe will not be porting the full Creative Suite to iPad any time soon.

The solution: Debut runs Creative Suite in the cloud and sends down static images to your device. You can even see the separate layers in a Photoshop image.

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It seems to me there is a lot of future in this kind of cloud-side rendering. Provided you have an internet connection, it is an elegant and scalable solution. In Debut, it is rounded off by commenting and mark-up features. The simplicity and focus of the app may make it preferable to running the full Creative Suite app locally, though it is not so good if the client asks you to change some detail RIGHT NOW.

Note: I have not actually used the app except in a brief demo.

Which Microsoft cloud? Windows Server 8 shows Azure is not everything

I was fortunate to attend a two-day drilldown into what is coming in Windows Server 8 last week, just before the BUILD conference under way in Anaheim, California. It is an impressive release, with two things standing out for me.

One is that Microsoft has successfully re-engineered Windows Server so that it is both sufficiently modular that you can transition from Server Core to full Server and back without reinstall, and also sufficiently detached from the Windows GUI that everything runs and can be configured without the need to log on to the Windows desktop on the server itself. This is a huge achievement.

Second, much of the engineering in Server 8 is focussed on making it better for cloud hosting. This the focus of changes in both Hyper-V and IIS, isolation of virtual networks, proper bandwidth and CPU quotas and throttling, and the ability to move VMs freely between hosts without taking them offline, and to replicate them for failover purposes. You can read more in my piece on The Register.

The question this raises for me is about Windows Server clouds and Azure. Of course Azure runs on Windows Server, but Azure is a platform, all the VMs are stateless, and when you use Azure you are buying into a whole set of services that might or might not match your needs. At a developer event yesterday, one explained how he could not use Azure because he needed to install a third-party application. The Hyper-V role helps a little, but it is not ideal as you still need to solve the stateless problem; at any time, changes you make to the server may be reverted.

If you simply rent plain Windows Server VMs in the cloud, you lose some of the benefits of cloud computing since you are responsible for everything about how the server is configured and maintained; but you also get complete freedom to set it up as you want.

One of the issues with moving from running your own Exchange and SharePoint, for example, to a cloud-hosted service like Office 365 is that you lose control of your destiny. If the service goes down, you have to beg and plead with support to get information and to speed recovery.

Now consider a scenario in which you have your Exchange and SharePoint on hosted Hyper-V VMs with replication (now coming in Server 8) to an alternate provider such as Amazon Web Services, or to your own on-premise servers. If the service goes down, you failover to the replicas.

Another compelling idea relates to live migration. Imagine you have a VM running on premise, and want to move it to the cloud. Without interruption of service, you could in principle migrate it from on-premise to the cloud and back at will. You need a fast connection of course, but this aspect is constantly improving.

The bottom line: plain Windows Server on a VM has many attractions versus an entire platform like Azure.

The snag is, Microsoft does not offer this type of hosting at the moment. Well, that is not necessarily a snag depending on what you think about hosting with Microsoft; but for some there is considerable reassurance in hosting with a company of Microsoft’s size, and which should in theory have the best understanding of what it takes to host Windows Server.

My guess is that Microsoft will either add this capability to Azure – without the limitations of the Hyper-V role, but with replication and failover – or else develop a new cloud service alongside Azure for this purpose.

My further guess is that it would be popular, possibly more so than Azure is today.

Google gets serious about App Engine, ups prices

Google App Engine will be leaving preview status and becoming more expensive in the second half of September, according to an email sent to App Engine administrators:

We are updating our policies, pricing and support model to reflect its status as a fully supported Google product … almost all applications will be billed more under the new pricing.

Along with the new prices there are improvements in the support and SLA (Service Level Agreement) for paid applications. For example, Google’s High Replication Datastore will have a new 99.95% uptime SLA (Service Level Agreement).

Premier Accounts offer companies “as many applications as they need” for $500 per month plus usage fees. Otherwise it is $9.00 per app.

Free apps are now limited to a single instance and 1GB outgoing and incoming bandwidth per day, 50,000 datastore operations, and various other restrictions. The “Instance” pricing is a new model since previously paid apps were billed on the basis of CPU time per hour. Google says in the FAQ that this change removes a barrier to scaling:

Under the current model, apps that have high latency (or in other words, apps that stay resident for long periods of time without doing anything) can’t scale because doing so is cost-prohibitive to Google. This change allows developers to run any sort of application they like but pay for all of the resources that your applications use.

Having said that, the free quota remains generous and sufficient to run a useful application without charge. Google says:

We expect the majority of current active apps will still fall under the free quotas.

Free apps are limited to a single instance, 1GB outgoing and 1GB incoming bandwidth per day, and 50,000 datastore operations, among other restrictions.

The pricing is complex, and comparing prices between cloud providers such as Amazon, Microsoft and Salesforce.com is even more complex as each one has its own way of charging. My guess is that Google will aim to be at least competitive with AWS (Amazon Web Services), while Microsoft Azure and Salesforce.com seem to be more expensive in most cases.

Heroku gets Java, Salesforce.com embraces HTML5 for mobile

Salesforce.com has made a host of announcements at its Dreamforce conference currently under way in San Francisco. In brief:

  • Chatter, the Salesforce.com social networking platform for enterprises, is being extended with presence status, screen sharing, approval actions, and the ability to create groups with customers as well as with internal users. Salesforce.com calls this the Social Enterprise.
  • Heroku, a service for hosting Ruby applications which Salesforce.com acquired in 2010, will now also support Java.
  • Salesforce.com is baking mobile support into its applications via HTML 5. The new mobile, touch-friendly user interface is called Touch.salesforce.com.

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Other announcements include the general availability of database.com, a cloud database service announced at last year’s Dreamforce, and a new service called Data.com which provides company information though a combination of Dun and Bradstreet’s data along with information from Jigsaw.

I spoke to EMEA VP Tim Barker about the announcements. Does Java on Heroku replace the VMForce platform, which lets you run Java applications on VMWare using the Spring framework plus access to Salesforce.com APIs? Barker is diplomatic and says it is a developer choice, but adds that VMForce “was an inspiration for us, to see that we needed Java language on Heroku as well.”

My observation is that since the introduction of VMForce, VMWare has come up with other cloud-based initiatives, and the Salesforce.com no longer seems to be a key platform. These two companies have grown apart.

For more information on Java on Heroku, see the official announcement. Heroku was formed in part to promote hosted Ruby as an alternative to Java, so this is a bittersweet moment for the platform, and the announcement has an entertaining analysis of Java’s strengths and weaknesses, including the topic “How J2EE detailed Java”:

J2EE was built for a world of application distribution — that is, software packaged to be run by others, such as licensed software. But it was put to use in a world of application development and deployment — that is, software-as-a-service. This created a perpetual impedance mismatch between technology and use case. Java applications in the modern era suffer greatly under the burden of this mismatch.

Naturally the announcement goes on to explain how Heroku has solved this mismatch. Note that Heroku also supports Clojure and Node.js.

What about Database.com, why is it more expensive than other cloud database services? “It is a trusted platform that we operate, and not a race to the bottom in terms of the cheapest possible way to build an application,” says Barker.

That said, note that you can get a free account, which includes 100,000 records, 50,000 transactions per month and support for three enterprise users.

What are the implications of the HTML5-based Touch.salesforce.com for existing Salesforce.com mobile apps, or the Flex SDK and Adobe AIR support in the platform? “We do have an existing set of apps,” says Barker. “We have Salesforce mobile which supports Blackberry, iOS and Android. We also have an application for Chatter. Native apps are an important part of our strategy. But what we’ve found is that for customer apps and for broad applications, to be able to deliver all the functionality, we’re finding the best approach is using HTML 5.”

The advantage of the HTML5 approach for customers is that it comes for free with the platform.

As for Adobe AIR, it is still being used and is a good choice if you need a desktop application. That said, I got the impression that Salesforce.com sees HTML5 as the best solution to the problem of supporting a range of mobile operating systems.

I have been following Salesforce.com closely for several years, during which time the platform has grown steadily and shown impressive consistency. “We grew 38% year on year in Q2,” says Barker. This year’s Dreamforce apparently has nearly 45,000 registered attendees, which is 50% up on last year, though I suspect this may include free registrations for the keynotes and exhibition. Nevertheless, the company claims “the world’s largest enterprise software conference”. Oracle OpenWorld 2010 reported around 41,000 attendees.

Microsoft partners are not whooping and cheering for Office 365

There is a telling moment in the day two keynote at Microsoft’s Worldwide Partner Conference. “Now we’ve added Office 365”, says Corporate VP Jon Roskill. Do you guys feel the momentum?” There is a muted cheer, not the big whoop Roskill is looking for. “Now let’s have some momentum, whoo!” he repeats. Another barely audible cheer.

Why are partners not whooping and cheering?  Take a look at the Microsoft-commissioned Forrester report [PDF] on the total economic impact of Office 365. This report claims a remarkable payback period of only 2 months for a midsize organization moving to Office 365.

Looking at the figures in more detail, Forrester claims $54,000 saved over three years in eliminated hardware, $10,000 over the period in eliminated third-party software, $25,000 saved in web conferencing (Lync Online is bundled with Office 365), and $18,000 in “internal labor and professional services” saved on planning and implementation. There is an even bigger saving in support. Here I find it hard to puzzle out exactly what Forrester is claiming. It talks about “savings of $206,350 over three years” from simplified support and outsourced administration of infrastructure, but also refers to $146,250 costs in admin and support costs for Office 365; I am not sure if the $206,350 is a net figure. Forrester also throws in $260,625 saved on reduced travel thanks to online collaboration, which strikes me as highly speculative.

I suggest therefore that you do not take Forrester’s figures too seriously; but it is still worth noting that many of the savings come from revenue that would otherwise have gone to partners. How much partner income is lost will depend on the extent to which an organization outsources its IT admin, planning, support and administration, and on the margins partners achieve on things like third-party software; but it is considerable.

Of course there are also new business opportunities for partners. Presuming the savings from Office 365 and Microsoft’s other cloud offerings are real, a cloud-oriented partner has a strong sales pitch both to existing and new customers. Partners get an ongoing commission from subscriptions.

There is also an opportunity for new applications which link to cloud services. Yesterday Microsoft announced that the Windows Azure Marketplace, which used to offer data services and application building blocks, now also offers finished applications in US markets.

It is also true that Microsoft’s cloud offering is more partner-friendly than others, because it is a hybrid solution. Forrester’s report mentioned above assumes use of Active Directory Federation Services for single-sign on between on-premise and Office 365, a key feature which has been under-reported in the media coverage I have seen for Office 365. This feature, along with the fact that Microsoft’s server products like Exchange, SharePoint and Dynamics CRM can be deployed either online or as hosted services, means that there is flexibility over what is hosted and what is on-premise.

Nevertheless, it is hard to construct a reality in which the savings customers get from cloud services are real, without the further implication that total partner revenue will diminish, even though certain individual partners who take advantage of the new opportunities may end up winners.

This is true even if Microsoft succeeds in retaining all of its existing Microsoft-platform customers, rather than losing them to Google or other cloud providers. The consequences of a migration to Google, which is inherently not a hybrid platform, seem to me more severe.

Is there any way to put a positive spin on this, from a partner’s perspective? A couple of thoughts on this.

First, even if certain kinds of IT business are under threat from cloud migration, it is also true that the transforming impact of IT and the internet on businesses is far from complete. Much of what businesses currently do with IT can be greatly improved, there is still a thirst for new and improved business applications, and new technology including not only the cloud, but also massively parallel computing and of course mobile presents many new opportunities.

Second, it seems to me that partners should not be asking themselves how to maintain their business, but instead planning for change. It seems to me inevitable that the demand for skills in installing and nursing servers, deploying applications, and in maintaining and supporting clients, will diminish; and that is a good thing because these activities are IT plumbing and if they can be reduced it frees resources for other activities which have more business potential.

Behind the whooping and cheering, Microsoft’s message to partners is a tough one. Change, or die.