key insights
- Cloud computing gives start-ups access to infrastructure
formerly the domain of the major players
- Cloud computing in inexorably ties to web apps - accessible
anywhere, collaboration charged and integration ready web delivered
applications
- Netbooks are driving the case for data and applications to be
"in the clouds"
- If infrastructure isn't your core business, you're better off
farming it out
Robert Coup and Ed Corkery are on a mission to bring order to
this muddled planet.
Through their business, Koordinates.com, the two Aucklanders are
collecting as much mapping data as they can and publishing it
online. If you need to know the position of every DOC hut in the
Ruahines, fault lines in California or the exact slope of a
hillside in Khandallah, Koordinates can tell you. That's pretty
handy information. If you're a surveyor, an architect or a council
planner, it's gold.
Coup and Corkery collect map data from every source they can
find, aiming to be "the one place for geodata". Since Koordinates
launched in April last year they've been adding data as quickly as
they can find it.
Not surprisingly, all this data takes a lot of disk space and
bandwidth-which should be a big problem. Coup and Corkery aren't
rich (yet), they're not being funded by a kindly investor with deep
pockets, and although they want Koordinates to be profitable, it's
early days. So how can they afford to make terabytes of data-by
mid-year they expect to have ten terabytes online, or about 2,500
times the size of the entire Wikipedia-available to anyone who
asks? Says Coup: "We looked at how we get up and running as a
startup without spending an inordinate amount of money on
infrastructure. How do we get it so that we can efficiently store
this data, process it, access it, and make it available to
people?"
Like most things, the answer can be found in a bookshop. The
world's biggest bookshop, in fact: Amazon.com. In 2006, Amazon
started offering space in its massive server farms to third-party
developers. This service, called Amazon S3 (for
Simple Storage System), allows anyone access to Amazon-grade web
hosting, delivered over very fast connections to every corner of
wired world.
"The price of computing is going to drop
considerably when an operating system and productivity software
isn't part of purchasing a computer … it will completely
change the market. That's when you're going to see the real
acceleration of cloud-based services, because
everything will be on the web"
It's cheap, too: 15 US cents per month to store a gigabyte of
data, and 17 cents to send that gigabyte to a customer. If you use
more space and traffic, it gets cheaper. Many small S3 customers
pay less than a dollar a month.
Have some number crunching to do? Amazon can help again: Elastic Compute
Cloud (EC2) allows users to create any number of virtual
computers, running Linux or Windows, and put them to use, all from
your desktop. Pricing starts at ten US cents an hour.
This is commodity pricing, and S3, EC2 and their
competitors-more on those later-are commodity services. They're
examples of cloud computing, a term that refers to computer
resources that are deployed over the Internet and can easily scale
up or down as needed. Koordinates' developers don't know where
their servers are located, don't know what hardware they're running
on, probably don't even know when a server crashes. Amazon handles
all the messy details; Coup and Corkery just know they have as much
bandwidth, disk space and processing power as they need, and
they're not paying for anything extra.
The downside? Don't expect too much flexibility: you can dump
your data in S3 'buckets', but you can't then index them for
searches or manipulate them as you could on your own disk. You can
create virtual Windows, Linux or OpenSolaris servers in EC2, but
don't presume it'll run that weird accounting package your cousin
built before he realised he actually wanted to be a sculptor. And
cloud servers can be as temporary as, well, clouds; Amazon warns
developers that if an EC2 instance crashes, their data will be lost
too. It's up to developers to expect problems and work around
them.
Still, cloud computing brings the capital investment for web
startups to virtually zero, removes much of the workload of systems
administration and allows companies to meet unexpected demand
without buying any hardware of their own. And it also heralds some
far-reaching changes that could revolutionise the way we gather,
store, display and consume content of all types, from Koordinates'
map data to Hollywood movies.
he most competitive area of software development today is
arguably in the web browser, and within the browser one area is the
most competitive of all: JavaScript performance. JavaScript is the
language that allows web developers to make web pages behave
something like a desktop program. Apple, Google and Mozilla have
all shipped much-improved JavaScript engines and announced even
faster versions in their next releases, while Microsoft promises
souped-up JavaScript in a future version of Internet Explorer.
Why? Surely the network is the main drag on performance, not the
browser? Of course, the network is still a factor, but today most
of the websites we use most often, from Trade Me to Twitter, are
web applications. Many of the best rely on JavaScript to be as
user-friendly as possible. Well-written sites also use JavaScript
to fetch only the parts of a page that need changing, reducing the
network load and reacting faster to user input.
Cloudy concepts
- What is cloud computing?
Predictably, the term is the subject of endless bickering, but
essentially cloud computing refers to on-demand, generic web
hosting that can grow immediately as needed. Customers pay only for
traffic and space that they use
- Who offers cloud computing facilities?
Amazon, Google and Microsoft are the best-known cloud computing
vendors, but there are other smaller operators too
- What does a 'cloud' computer look like?
Most vendors use virtualisation to allow many different customers
to operate across thousands of machines. Many buy their computers
by the container-load-and never unpack them. Inside the container,
the computers are already wired up; just add power and Internet,
and each container becomes part of the cloud
- What does it mean for creative Kiwis?
Cloud computing is a classic commodity product. It means companies
can get access to world-class hosting and bandwidth without paying
a cent upfront, pay only for the space and bandwidth they actually
use, and cope with sudden traffic as soon as it arrives
These two factors-super-fast commodity services in the cloud and
a rich, snappy experience in the browser-give software-as-a-service
(SaaS) companies a ready advantage over traditional desktop
vendors. There's still a place for desktop software, but any
company creating a software product from scratch now will ask if it
can be delivered over the wire, and probably decide that it can.
For every established, successful software vendor like MYOB,
there's a nimble SaaS startup like Xero that's trying hard to eat its lunch.
Ask Xero's CEO, Rod Drury, whether he plans to move his
Windows-based infrastructure into the cloud, and he's quick to say
no. Xero, he points out, is not a typical Kiwi startup: it was
funded from day one to employ 50 people for three years. By Xero
standards, the servers, hosted at Rackspace in Texas, are not a big expense. "We
spend probably about US$12,000 a month on all of our hosting-it's
about the same price as one-and-a-half people. The actual hosting
and infrastructure cost is relatively small."
It's other essential things that cost the most, he says:
marketing, customer service, feature improvements and user testing.
"You won't just turn stuff on in the US and suddenly you get
thousands of customers. You actually have to do the marketing as
well, because it's very difficult to create noise. That's the
challenge!"
Drury is no cloud sceptic though. "I think the credit crunch
means it's going to be harder now for people to raise money. And
there's this massive cloud computing opportunity. We don't have the
infrastructure to connect us to the world, and we don't have the
investment culture. So at the moment I think there's this huge
opportunity to use brains-rather than producing stuff, real stuff
with carbon and that sort of thing. We're really missing the
opportunity."
For Drury, a third factor comes into play: the desktop is losing
its dominance. The iPhone is the first mobile phone that people
actually enjoy using to surf the Internet (according to the AdMob
Mobile Metrics Report, in February the iPhone
generated half of all smartphone traffic in the US).
Google's Android promises to be a similarly web-savvy device. And
the hottest computers this year are netbooks: tiny, lightweight,
laptop computers, typically with a nine-inch screen, a reduced
keyboard, no CD or floppy drive, and a very small hard disk.
They're designed to work wirelessly over wi-fi or mobile 3G and fit
easily into a handbag, shoulder bag or even a pocket. The Dell Mini
9 I've been testing might run Microsoft Word okay; I've never
tried. But it works very well with browsers like Apple Safari and
Google Chrome and retails here for just $900; Vodafone will even
give you one for free if you sign up to a data plan.
These machines aren't designed to run desktop apps; they're all
about the Internet. "When Google Chrome comes out over Linux [on
netbooks], that's going to completely change the market," says
Drury. "It will mean that the price of computing is going to drop
considerably when an operating system and productivity software
isn't part of purchasing a computer. I don't think it means that
Microsoft loses; it means they'll have to change their pricing
model as well. That's when you're going to see the real
acceleration of cloud-based services, because everything will be on
the web."
So we have the generation tools, and we have the consumption
devices. But what about the content? It seems that content, too, is
destined to become ubiquitous, affordable and available. At this
year's Webstock conference in Wellington,
Everyblock.com founder Adrian Holovaty talked about how his hyperlocal news
site was designed and deployed, but said they spend a great
deal of their time sweet-talking the public and private bodies that
hold the data he wants to share with users: police callouts, real
estate listings, health inspections, photos and other local
minutiae. There should be a special place in heaven for Holovaty
and others who work to unlock and distribute public data: they're
breaking down bureaucratic barriers and creating a true democracy
of data. You could say they're fulfilling the promise of the
Internet and the web to bring knowledge tools into the hands of
everybody, everywhere, all the time.
Flickr, YouTube and other progressive sites have always made
their users' content available for use on other sites. Unlocking
public data is a next vital step. The final step will be when the
owners of creative content make it broadly available for use
elsewhere, perhaps with a charge involved but importantly without
digital locks or crippled features. That's another political and
commercial battle, but once it's done the barriers to creativity
and knowledge will be greatly reduced.
Back in Auckland, Coup and Corkery are planning Koordinates'
push offshore. Their relentless pursuit of map data continues, from
rivers in the Chathams to railways in Texas. If they can get the
data for free, they'll share it at no charge; if they have to pay,
they'll clip the ticket and bank some of the proceeds. One thing
they don't have to plan for is adding infrastructure to cope with
all that extra data.
"You can do that," says Coup, "but then the
question becomes: is your business about what Jeff Bezos at Amazon
described as 'the muck', where you're making sure that disks don't
fail and things are backed up, where data ends up everywhere all
the time and whether the servers are even up, and that sort of
stuff? Or is the business about actually creating some value and
you can let somebody else take care of the muck?"
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