Valovic on Virtualization

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Amazon Enables IT End-run, Film at Eleven

John Suit is CTO and Founder of Fortisphere, a startup that focuses on automation technologies for virtual environments. He made some predictions for the virtual space in 2009, and shared them with us recently. One I found particularly intriguing. Imagine this scenario: a business unit owner in the company goes to their IT admin and says “How come I can go to Amazon and get an EC2 cloud instance for $15/month and .15 cents an hour and I have to pay you guys $9000 a year?”

Suit points out that if this becomes a trend, IT will “have to have a really good answer”. Indeed. He also says his company is seeing this kind of thing happening already. If the economy’s current duck dive provides even more momentum to cloud (high likely in my opinion), the trend might get legs. And while we’re talking Amazon, fun fact according to David Lynch, VPM over at Embotics with whom I had a similar conversation: Amazon’s external cloud-based level of IT transaction activity has recently crossed a threshold to where it’s now greater than internally generated activity.

Posted by Tom Valovic on 12/17/2008 at 12:49 PM


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