John talked about Microsoft’s mission, his perspectives on key industry trends and market opportunity; he touched on Cloud Computing and Virtualization and took some Q&A from the audience of Managed Service Provider executives.

One of his first proclamations - Microsoft has really embraced the heterogeneous environment. Really? How in the world is Microsoft going to help convince IT line managers, or mid level managers to believe this statement? I think they have a long way to go to achieve this vision with any credibility in the marketplace.  I do know that they are making small strides.

Microsoft has been widely credited with some very good blogs that are self critical and introspective. They have also been quite active in the standards boards within DMTF and many others such as Open WSMAN and CIMON (Open Pegasus). Microsoft in February published 30,000 pages detailed technical specifications – protocol documentation for Exchange, since that time they have published another 15,000 pages. They have had over 224,000 downloads since February 21, 2008. Thus they are trying to be more open by making some of these secret sauce protocol resources directly available on the web.

So for now, I will take a very cautious wait and see approach to this proclamation. Time will tell.

Trends

• Rapid growth continues
• Hosting Competition has a new face
  • Platform gorillas (amazooglesoft)
  • Ad supported Web 2.0 hosters (Google, Facebook,)
• Utility Cloud Computing models are expanding to non-traditional hosting companies
  • Wells Fargo vSafe - hard to believe that a big bank would start to offer a SaaS offering
  • New tools and markets digital ribbon, CohesiveIT

IDC Data shows that growth of SaaS ISV’s is the biggest layer of growth. The fastest growing services are complex, custom applications. IDC says this area will be bigger than the hosting area in the next 5 years. John said that Microsoft is spending a lot of time, money and energy on this right now.

John said:

“when Microsoft thinks about the building blocks that make-up the cloud, virtualization is a core piece of the puzzle. However you also need also identity services, Operating system with standard set of libraries to tap into… or remote storage that application developers will tap into.. Developers will consume these set of services, but you will also need a set of tools to manage your physical, virtual and geographically distributed datacenter infrastructure.” (that is where ScienceLogic comes in!!)

He went on to say,

“In some ways, virtualization enables decentralization – allows you to move from data centers, enables fast scaling out, business to move from on premise to the cloud and off again…. Automation is very important – this will help you scale your business – this is core to your future success.”

He talked about a new breed of knowledge worker: He called them Digital Natives (compared to grey haired guys like me who are left out of this category).

Definition of a Digital natives? A young adult who has grown up with cellphone, web based applications, Facebook account, as their primary mode of communications.

John commented that we are 5 years into a 10 year journey. Only 12% of all servers in the world are virtualized today… in the next 4 years it will double to 25%. This is the time to think through how this business will affect you.

‘Virtualization without good management is more dangerous than not using virtualization in the first place.” Thomas Bittman, Analyst Gartner

Patching and provisioning nightmare – no scalable administration – sprawl chaos.

John posed a question to the audience: How do you partner to provide the ISV support in application development with specific market needs… partner by keeping the hosting to SaaS solution providers up and running and provide the quality of service that their customers expect…. Complimentary services of storage and backup is a big win with a huge market-upside over the next 5 years..

John said that Microsoft continues to make  huge investments with Managed Service Providers.

• Investing in the windows hosting platform
• Hyper V and SQL2008 GoLive program - getting beta code out to service provides to find as many bugs as early as possible.
• Software + Services (S+S) incubation center program
• Partnering for cloud platform market offers
• Cloud platform guidance and best practices

During the Q&A, David Burns from Cincinnati Bell asked the very best question… “when are you going to make it easier for the Service Provider market to deal with the Microsoft Service Provider Licensing Agreement (SPLA) quarterly statistics pull and change the SPLA pricing to be more efficient and creative for the new Virtualization and Cloud offerings you have talked about?”

John’s response: “We hear your frustrations loud and clear and are working on some new ideas for the future version of SPLA.” My interpretation – “Dear Service Providers don’t expect anything new or easier to deal with in the next 6 months!”

His closing remarks: “Cloud is evolving = very early stages, lots of hype, but think of how this evolution will effect your business and how you can plug into it.”

Four chains, four Wi-Fi pay policies: CIO magazine looks at Borders, McDonald's, Panera, and Starbucks, and how they're offering Wi-Fi. I'd like to suggest you read this article, but the author writes, "Right now, according to Hotspot Locations, there are more than 33,000 WLAN hotspots worldwide, and more than 10,000 in the United States alone." I don't know who "Hotspot Locations" is, and I need to disclose that I have a financial interest in what must be their competitor, JiWire, but any hotspot finder that calls them "WLAN Hotspots" and reports 11,712 in the U.S. and 33,106 worldwide just isn't working very hard. JiWire lists over 230,000 hotspots worldwide, and notes over 60,000 in the U.S., while Boingo and iPass each resell access to over 100,000 hotspots worldwide.

Up, up, and away in my beautiful, my beautiful warballoon: Defcon hackers deployed a balloon with Wi-Fi receivers on it 150 feet in the air to scan for network vulnerabilities in Las Vegas last week. They found 1/3rd of networks had no encryption--although I always wonder if they're using passive scanning where 802.1X allows a limited connection for authentication and appears "open" in some ways, or if they were actively scanning, in which case 802.1X networks would be unavailable.

Cincinnati Metro service has Wi-Fi on 20 buses: The free service supplied by AT&T in an ads-for-access deal with the authority was placed after a couple years of testing on a relatively long commuter run. The authority spends $15,000 per bus to setup a connection, which seems rather pricey. Other authorities are paying in the low thousands, from what I've seen, so I'm not sure what their particular case is.

I say I am live blogging this, but of course you are not live reading this.  That is because I have no way to upload this to my server.  You see the iPhone 3G for all the coolness, has no Internet sharing that I am aware of. My old windows mobile phone had Internet sharing and if I still had that you would be reading this live right now.  But no, not with the iPhone. 

I was scheduled to connect in Cincinnati right about now.  I am obviously missing that connection.  I was flying from there to Columbus and driving about an hour and half from Columbus.  I have a 9am meeting tomorrow.  So unless I feel like renting a car and driving 4 hours whenever it is I land, I am pretty much missing my meeting tomorrow as well. 

What to do?  a). Should I break out of this plane, run to the terminal and try to get on a flight home to Florida  b). Go postal or c). Grin and bear it and try to remember that I love what I do and that is what flying in the summer is all about (actually that summer thing is full of beans, it is no better in winter with weather either!).

So here is the update, we sat on the runway for 4 hours!  Finally took off and landed in Cincinnati at midnight. I had no connection.  Could not get a flight out in the morning, not rent a car and most hotels sold out. I am writing this from the coffee shop of the lovely (and I do mean lovely) Drawbridge Inn. I will miss my meeting in the morning and am booked on a flight home tomorrow.  Ah, the life of a road warrior!

Here is the link to Cincinnati ISACA Feb. 12 meeting and workshop information page.

Thanks, Erik

Erik T. Heidt, CISA, CISSP

Art of Information Security would love your feedback !

Cincinnati ISACA Feb 12th Meeting