Welcome!

Blog Feed Post

SaaS vs. IaaS: Key trade-off has nothing to do with vendor lock

Lately there were some blogs implying that businesses should pick Infrastructure as a Service (IaaS) over Software as a Service (SaaS) as SaaS has higher vendor lock compared to IaaS.  There has been a lot of buzz around the three flavors of cloud computing, SaaS, PaaS, and IaaS.  It is important for business and IT leaders to understand the true trade-offs; when would it make sense to pick one over the other.  Though  it is true that SaaS has greater vendor lock, the reason a customer picks SaaS vs. IaaS has less to do with the vendor lock and has more to do with the type of application and the competitive landscape of the customers's business.  SaaS provides the application as a service which is available to not only to you but also to all your competitors, so from a business perspective moving core competency application to the SaaS model is equivalent of giving up your competitive advantage and it doesn’t make any sense.  Savvy business leaders evaluate SaaS offerings only for non-differentiating applications.  For applications which are proprietary and have custom business logic, IaaS is the only option for reducing Infrastructure costs and effectively managing the service levels.  IaaS allows customers to keep their application logic/code proprietary and only use the virtual infrastructure resources from external service providers.  In this case businesses not using IaaS will be at a disadvantage compared to their competitors who will enjoy better cost and management advantages by using IaaS.  Businesses have already spent billions of dollars on building proprietary applications to gain competitive advantage and with information technology being more widely used for gaining competitive advantage, the number of applications which would require Infrastructure as a Service is going to grow significantly.  The number of suppliers providing Infrastructure as a Service is going to grow, exiting hosting providers and new players will enter in the market.  According to IDC data, businesses around the world currently spend over 400 billion dollars in IT infrastructure costs per year, these costs are going to be over 500 billion dollars in 2013.  I have worked for companies that were and still are spending over billion dollars annually on Infrastructure world wide and would love to find ways to optimize Infrastructure costs as long as they can make sure that their proprietary information and knowledge is not compromised by using external Infrastructure as a Service.  Over the period of time Infrastructure as a Service will become a significant portion of the world-wide IT infrastructure spend.  This being said there will be an increase in SaaS market size also as there will be several applications that businesses will consider non-differentiating and will be open to moving them to the SaaS model.  Another category of cloud offerings is Platform as a Service (PaaS).  Given that there is no restriction in using existing middleware platforms in the cloud, e.g. for our own IMOD application we are using JBOSS & MYSQL clusters with Apache web server for balancing the load.  We are able to deploy a scalable architecture using existing middleware technologies in the cloud for running a highly scalable application, because of this PaaS has less compelling value proposition as why do we need to learn a new Platform API for building scalable applications if we can use the existing middleware and deploy it easily on IaaS?  SaaS providers themselves will move to IaaS for hosting their applications efficiently and effectively.  Fundamentally cloud computing is about IaaS, and IaaS is a huge disruption to the traditional hosting model.  To cope with this disruption, traditional hosting providers are moving towards providing their own IaaS solutions.  All major players in the industry have recognized this disruption and are moving towards providing IaaS.  This is great news for Kaavo as we are providing automation and security for deploying and managing applications on IaaS.

Read the original blog entry...

More Stories By Jamal Mazhar

Jamal Mazhar is Founder & CEO of Kaavo. He possesses more than 15 years of experience in technology, engineering and consulting with a range of Fortune 500 companies including GE and ING. He established ING’s “Center of Excellence for B2B” which streamlined $2 billion per month in electronic money transfer operations. As Lead Architect at GE Capital e-Business team, Jamal directed analysis and implementation efforts and improved the performance of the website generating more than $1 billion in annual lease revenues. At Trilogy he provided technical and managerial expertise for several large scale e-business implementation projects for companies such as Boeing, NCR, Gartner, British Airways, Quantas Airways and Alltel. Jamal has BS in Electrical and Computer Engineering from the University of Texas at Austin and MBA from NYU Stern School of Business.

Latest Stories
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...