After meetings and calls, I was finally able to slip into a conference session – just in time to catch uber-smart analysts Rachel Chalmers (The 451 Group) and Dan Golding (Tier1 Research) engage in a lively and not-so-mock debate on “Hosting Meets the Cloud”.

Now this doesn’t cover the entire debate – and part II is coming tomorrow. But what it does cover is the most interesting questions (to me) and paraphrase the points made by the analysts. I thought they both had very interesting points and more similarities than differences in the end; the real difference is how they thought about the issues and through what lens – for Rachel it was the enterprise and for Dan it was managed hosting providers. (image from inmagine)

Question: What is a cloud and why?

Dan: Shared infrastructure leveraged/run by third parties for the benefit of enterprises, developers, etc. This is not a new idea – just recently “rebranded.” Given all the discussion and disagreement over this now, what will the cloud end up looking like?

Rachel: The cloud is “IT infrastructure as a service” down to the level of a server operating system. Take the example of Amazon web services – in this case it’s not just the infrastructure but also the internal processes built around service delivery, e.g., provisioning, that are being exposed as a commodity to external customers.

Dan’s Question for Rachel: In your opinion, how much is the cloud a fad versus CIOs really trying to solve a problem?

Rachel: For the practical, roll-up-your-sleeves types of CIOs – those coming up from the engineering ranks – that I talk to, the cloud is real, as opposed to SOA and middleware.

What about “internal” cloud computing – built and maintained by an enterprise versus a third-party provider?

Dan: Cloud computing is done by providers for customers. Certainly there are enterprises that have made internal computing investments, e.g., for publishing, large-scale phone systems, etc - but they were stupid ideas made by companies that have too much money. A better question here is does it make any sense for an enterprise to create their own cloud? While an enterprise can play at it, they can’t do it cost-effectively, not in a way that a third party provider can do it.

Rachel: Many CIOs have “managed-hoster” envy – for things like chargeback and billing that hosters understand a do better. Of course there has been a rise in automation and virtualization tools in the enterprise which may not be as efficient and built for scalability as a hoster can achieve, but what is important is that they are customized/specialized for that business.

Dan: Can you give a specific example of optimization to make it worthwhile for enterprises to do it themselves?

Rachel: One example is sovereignty. The privacy laws around financial and healthcare information are not the same everywhere. Clouds and their geographically-dispersed data centers don’t necessarily have “national” borders. This is definitely a concern for the CIO that has to comply with regulations in their industry around privacy protection, for instance. Another example is security. Dow Chemical does a lot of work via joint ventures and has a need to provide but lock down desktops given to contractors as corporate workspaces. For their level of security, they need to “own” their computing resources.

Dan: But why can’t someone like SunGard provide that as they do for many other large companies?

Rachel: It comes down to a question of trust.

Do people trust their hosting providers?

Dan: Yes. Whether it’s for a content delivery network or collocation, hosting the customers of hosting providers are some of the largest companies in the world in industries like energy and financial services. Give me a case when there was a major security issue with a hosting company. In fact, managed hosting providers usually provide better security than enterprises are capable of.

And a question provided by an attendee from EMC: A few years ago, this would have been a grid discussion. How is the cloud different?

Rachel: Grid computing ended up being applicable only for niches – which I predicted. The real opportunity for everyone else with the cloud only comes up when you combine the kinds of automation tools (originally developed for grid computing) with x86 virtualization.

Dan: I agree. Grid was a niche play. There were very few orgs that needed it and that the economics worked for. There were very few enterprises for whom it made sense to build their own for. The cloud is shared/leveraged versus grid computing. It economically makes sense in a way grid never did.

Rob Enderle recently attended an EMC conference where, among the speakers, he heard from Uri Rivner regarding the growing sophistication–and mass-production capabilities—of the online fraud industry. In his excellent piece in Dark Reading on the subject entitled “How RSA/EMC Scared Me Half to Death”, Rob admitted to being more than a little scared by what he heard. And among his fears is that, in these tight economic times, companies will not make the investments needed to ensure that they and their customers are secure against these increasingly robust threats...

So can open source weather out the economic storm? Emerging from the dot-com bust, open source has matured, its legal framework and values are established, and serious players are in the game. But as this post on ZDNet points out, consolidation is on the way. “IDC renamed its LinuxWorld Show in San Francisco next year Open Source World – a clear shot across the bow at O’Reilly’s OSCON.” Will open source (from free to lower-cost alternatives to commercial software) flourish in a time of tightening budgets or will projects quietly go away for lack of funding (VC and that pesky business model thing) and, let’s face it, the “extra time” of IT pros tasked yet again to do more with less?

It’s October 2008 and Charles Babcock writes, “CA Embraces Virtualization As Future of Data Center Management”. Beyond keeping up with what competitors are doing, I enjoy this article for the masterful way it depicts the nightmare that is working with traditional frameworks. Too slow, too expensive, too complex, too many modules – it’s all in here. And somehow, I don’t think that was the point of it. So, $154,000 for CA Data Center Automation Manager – which can “consult” the CA CMDB (pricing starting at what do you think, something like $500K to a million – don’t forget those services) plus CA Wily APM (Introscope 8 and Wily Customer Experience Manager 4.2; pricing anyone?) metrics that get fed back into Data Center Automation Manager to help determine the virtual machine resources that are needed. Plus can also integrate info from CA Endeavor’s software change management tracking and CA SysView and in future with CA Management Suite for Mainframe Linux, potentially. I am not kidding about this list. And, we’ve been hearing this for a while – “Unicenter” the brand goes away and is replaced by “CA NSM”. The brand goes away. Why retire a successful brand? Ah.

I love this post on EMC, “Eleven Things You Didn’t Know About the World’s Largest External Disk Storage Company.” Although I guess I really don’t know much about Joe Tucci, since #11 says:

“Contrary to conventional thought, it is not true that the EMC President/CEO is the older, gentler brother of the fictional patriarch of HBO’s hit television series.” Hunh. I just googled him, thinking maybe it was a resemblance thing. Nope."

And on a much lighter note. A funny from Dell. 2 years later, I just stumbled across this Proprietaryville , Jibjab-ish video, called Dell the Journey. Legacy systems being escorted onto the Retirement Home bus. Michael Dell as knight in shining armor, singing no less. Joe Tucci and Larry Ellison showing up as heroes leading the charge against Proprietaryville (yes, funny in and of itself). And my favorite, “Now let’s go kick some proprietary apps.”

IDC also found that although 80 percent of CEOs believe their security teams are being held formally accountable for their contributions to business growth and innovation, only 44 percent of security leaders believe they are being measured on their contributions to innovation. This finding points to a surprising lack of alignment between the expectations of C-level management and the priorities of security professionals...