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Cloud software companies: cloudy is as cloudy does

Steve Hodgkinson | May 4, 2009
Specialist cloud software providers must play by cloud logic the new rules of the cloud rather than being dragged into a slugging match with the incumbent IT majors on their turf and to their rules.

Cassatt talks about creating internal clouds but does not itself fully live in the cloud. Its software products are on-premise solutions that confront the incumbent IT vendors on their own turf and require enterprises to bite on a painful transformation bullet.

Providers of software for private clouds need themselves to live by cloud rules

The Cassatt story reinforces the challenges that specialist cloud software companies face. The solutions may be better, but it is still tough to persuade folks to switch out their existing work practices, vendors and software tools.

When the IT majors like HP are starting to bring out SaaS solutions like CloudAssure, then the specialist cloud software providers need to leverage cloud logic as fully as possible to compete. Lubricate enterprise inertia by providing cloud solutions that are easy to buy online and can scale over time as opposed to big deal software sales tactics. Find the chinks in the enterprise and focus initially on new applications and workloads at the margins, rather than in the core. Avoid tackling the incumbent IT vendors head-on by sneaking in under their radar one service at a time.

Cloud computing is a new model for IT. Specialist cloud software providers must play by cloud logic the new rules of the cloud rather than being dragged into a slugging match with the incumbent IT majors on their turf and to their rules. Perhaps this is Cassatts rich learning experience.

Steve Hodgkinson is a research director in government at Ovum  

 

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